Coca Cola Share Split History and Why It Matters

Coca Cola has undergone several share splits throughout its history, with the first occurring in 1927, when the company split its stock 3-for-1. This move reduced the par value of the shares from $100 to $33.33.

The 1927 share split allowed Coca Cola to make its stock more affordable for small investors, increasing its marketability and appeal. This was a strategic move to boost investor confidence and drive growth.

The company's subsequent share splits in 1957 and 1977 further increased the number of outstanding shares, making Coca Cola's stock even more accessible to a wider range of investors.

Coca-Cola's stock split history is a long and storied one, with the company having split its stock 10 times since its inception in 1919.

The company's first stock split was in 1929, but it wasn't until 1996 that Coca-Cola recommended its first stock split in 16 years.

If approved, Coke's split would increase the number of its shares to 11.2 billion from 5.6 billion, making it a significant move for the company.

Coca-Cola's stock has been split in line with its plan to double revenue over this decade, and the company's strong brand equity, marketing, research and innovation have helped it to garner a major market share in the non-alcoholic beverage industry.

The company's portfolio includes beverage products, spanning from sodas to energy drinks, and it currently reports operating results under the following segments: Europe, Middle East and Africa; Latin America; North America; Asia Pacific; Global Ventures; Bottling Investments and Corporate.

Here's a brief overview of Coca-Cola's stock split history:

The move is subject to approval by shareowners on July 10, and if approved, shareholders would receive one additional share of stock for each share held in early August.

A stock split is essentially a cosmetic procedure that makes shares more affordable to small investors. Companies often split their stock to align their share price with competitors, making it more attractive to buy.

A stock split doesn't change the company's valuation, it's just a change on paper. Single shares become double shares, each with half of its prior value.

Coca-Cola's management team might decide to issue double shares to cut the stock price in half, making it more comparable to competitors like soda stocks priced at $5 or $10 a piece.

Stock splits are often considered a cosmetic procedure that doesn't change a company's valuation. They're done to make shares more affordable to small investors, especially when a stock's price is significantly higher than its competitors.

Companies may also split their stock to align their share price with competitors. For example, if Coca-Cola's stock is priced at $200 or $300, but alternative soda stocks are available for $5 or $10, the management team might issue double shares to cut the stock price in half.

Nothing about the company's valuation changes - the change is just on paper, where single shares become double and each one has half of its prior value.

A stock split doesn't necessarily mean the company's value has increased, but it can be a sign that the equity has risen in value.

Coca-Cola's earnings report was a good day for the company, with a modest beat of analyst expectations and modest growth in revenues.

Net income was up 3 percent, a significant improvement from the previous year. This growth in net income led to an increase in earnings per share (EPS) from $0.31 to $0.35.

The company's revenue also saw a boost, rising from $1.84 billion last year to $1.89 billion this year. This increase in revenue was a welcome surprise for investors.

The modest growth in earnings and revenue was enough to beat average analyst estimates of $0.33 as found by a FactSet poll. This shows that the company's financial performance is on the right track.