Buyback & Split
I receive stock options as part of my compensation package. The stock split a few years ago and rumor has been its about time to split again. Then the company announced a pretty big stock buyback plan over the next 12 months. What should I expect? Share price to raise over next 12 months and then a split?
Stock price is double what it was the last time it split.
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What should I expect? Share price to raise over next 12 months and then a split?
You can expect what ever you want. Share price can't be predicted
The only thing you can draw conclusions about is the company's announcement of a buyback plan. Companies buy their own stock back when they feel that they have a surplus of cash, they feel that their growth is on-track and does not require a boost through spending some cash, and when they are bullish on the future of the company. Other reasons are to fend off takeover attempts or to attempt to go private.
Rumored splits are vapor. You cannot use that as any sort of indicator. Plus, as @BobBaerker said, a split does not affect the value of your position. 2x1/2=1.
Edit: Also, the company's announcement signals that they want to influence their shareholders to hold their stock.
Stock splits do not change the value of you position or the value of your options.
Rather than consider what you should expect, you should hope that share price continues to rise. That's where the gravy comes from.
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