FWIW, UNFI declared a 2:1 on 3/18/04. On that day, its shares closed at 24.23 spit adjusted.
Of course, it is the stock's past price appreciation that causes a stock split; a stock split does not necessarily cause a company's share price to appreciate (not withstanding a minor euphoria caused pop on the announcement--no change in the company's fundamentals) My take is that while it's "fun" to own more shares, my position's relative size compared to other stakeholders remain the same (obviously). The only positive I take from a split is that the board presumably is positive re the company's future; othwerwise, why would they want to cut the share price in half only to possibly see the share price decline to a lower level?
Or put another way, why would a pizza pie be worth more if it is cut into sixteen slices compared to a similarly sized pie that is cut into eight pieces?
Nice to see UNFI performing well; earnings should be out in about a month. Estimates for the Q are .556/share or about 15% greater than comp Q.
"price appreciation following because the company continues to execute.'
Exactly; it's that a company continues to execute well (continuation of good fundamentals) that causes the shares to appreciate. While one can dismiss the value of a PE ratio given the "E" can be manipulated, whether a company's share price is 50 or 25, the PE remains the same as do its fundamentals.