Understanding Dell Stock Splits and Their Impact on Investors

Dell stock splits are a way for the company to increase the number of shares outstanding, making each share more affordable for investors.

Dell has a history of stock splits, with the most recent one occurring in 2020.

In 2020, Dell split its stock 4-for-1, meaning that for every one share an investor owned, they received three additional shares.

This move reduced the price per share from around $56 to around $14.

Additional reading: Why Share Split

Dell's history is a fascinating story of rapid growth and stock splits. The company's first stock split occurred on April 9, 1992, with a 3-for-2 ratio.

Dell's stock splits were frequent, with six splits taking place between 1992 and 1999. The company's stock price more than quadrupled from its IPO price of $8.50 to almost $40 before the first split.

Here are the dates and split ratios for Dell's past stock splits:

Dell's stock price was already at $90 in late 1995, prompting another split. The company's stock continued to climb, reaching triple-digit values and prompting further splits.

Dell stock has seen significant growth since going public again in December 2018, with a gain of 226.83 percent in value.

Much of this growth started in March 2020 when the stock traded at $12.90 per share following the COVID-19 market crash.

The shares have since increased in value by more than 323 percent.

A stock split, which Dell has undergone, often acts as a welcome sign for interested investors.

Morgan Stanley analysts have updated their target price to $67 per share, which would be a premium on the current sub-$55 price on Nov. 3.

Consider reading: Dell Inc Ticker Symbol

Dell performed an approximately 2:1 stock split on Nov. 2, doubling the number of outstanding shares and cutting the price per share in half.

The stock split helped Dell smooth out its price distribution following the VMware spin-off. The Nov. 1 closing price of $111.51 per share hit $55.12 by mid-morning the following day.

Dell provided 0.44 shares of VMware common stock for each Dell share as a special dividend, with fractional shares distributed in the form of cash.

You might like: Company Share Split

Dell performed an approximately 2:1 stock split on Nov. 2 to smooth out its price distribution following the VMware spin-off.

The number of outstanding shares doubled while the price per share was cut in half. This means the Nov. 1 closing price of $111.51 per share hit $55.12 by mid-morning the following day.

Dell provided 0.44 shares of VMware common stock for each Dell share as a special dividend, with fractional shares distributed in the form of cash.

Recommended read: What Are Shares in Stocks

Dell first split its stock in 1992 at a 3:2 ratio.

The company had completed six more stock splits by the end of the decade, each a 2:1 split. This shows just how rapidly Dell was growing and expanding during that time.

In October 2013, Dell was bought out by privately held Silver Lake Partners for $24.4 billion. This marked the end of Dell's time as a publicly traded company.

Dell stock was delisted from the Nasdaq and the Hong Kong Stock Exchange, where it traded American depositary receipts. This was a significant change for the company.

Dell returned to the public market in 2018 when it listed on the NYSE under an eponymous ticker.

A different take: 3m Company Stock Splits