5 Stocks That May Be Splitting Soon

In this article, we will discuss the 5 stocks that may be splitting soon. If you want to explore similar stocks, you can also read 10 Stocks That May Be Splitting Soon.

5. AutoZone, Inc. (NYSE:AZO)

Number of Hedge Fund Holders: 42

AutoZone, Inc. (NYSE:AZO) is a leading retailer and one of the largest distributors of automotive parts and accessories in the United States. The company offers a wide variety of products for cars, trucks, and SUVs. AutoZone, Inc. (NYSE:AZO) is committed to providing the best possible service to its customers. The company is cash-rich and has a strong track record of delivering shareholder value. The company has free cash flows of $2.53 billion. On October 4, AutoZone, Inc. (NYSE:AZO) announced its board of directors has authorized a share buyback program of $2.5 billion of the company’s common stock. The company has authorized $33.7 billion in share repurchases since 1998.

AutoZone, Inc. (NYSE:AZO) has split its stock two times in its history of being a public company. The company’s most recent split was a 2-for-1 stock split in April of 1994, and its share price since then has surged from $29 to $2,464 per share, as of November 9. AutoZone, Inc. (NYSE:AZO) is ranked high among the stocks that may split soon.

On October 20, Truist analyst Scot Ciccarelli raised his price target on AutoZone, Inc. (NYSE:AZO) to $2,533 from $2,292 and maintained a Buy rating on the shares.

At the close of Q2 2022, 42 hedge funds were eager on Autozone, Inc. (NYSE:AZO) and disclosed positions worth $1.28 billion in aggregate. As of September 30, Aubrey Capital Management is the top investor in AutoZone, Inc. (NYSE:AZO) and has stakes worth $4.07 billion in the company.

Here is what Carillon Tower Advisers had to say about AutoZone, Inc. (NYSE:AZO) in its second-quarter 2022 investor letter:

“AutoZone, Inc. (NYSE:AZO) sells automotive replacement parts and accessories. The company reported another solid quarterly update that highlighted particularly robust growth in its commercial segment, market share gains, and stable gross margins. Additionally, investors have appreciated the company’s historically stable business model that is positioned to perform well in periods of economic stress.”

4. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)

Number of Hedge Fund Holders: 44

Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is a leading global biotechnology company that discovers, develops, manufactures, and commercializes medicines for treating various diseases. The company has a strong pipeline of products in various stages of development, including treatments for age-related macular degeneration, non-alcoholic steatohepatitis, atopic dermatitis, and psoriasis.

Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is among the companies whose stock split is long overdue. The company has never split its stock in history and, as of November 9, is trading at $743 per share. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is ranked high among the stocks that may split soon.

On November 9, Truist Securities analyst Robyn Karnauskas raised his price target on Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN) to $856 from $790 and maintained a Buy rating on the shares.

At the end of Q2 2022, Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN) was a part of 44 investors’ portfolios that held positions worth $1.60 billion in the company. As of June 30, Renaissance Technologies is the top investor in the company and holds a position worth $344.6 million.

Here is what Bronte Capital had to say about Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) in its third-quarter 2022 investor letter:

“There have been some bright spots in our long book. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN), a major position and a stock we wrote up in our June 2021 letter, has been one of the best performing stocks in the S&P 500 this year. Alas it has not been enough to offset some of our weaker stocks, let alone our overweight exposure to the UK (and Europe) which have suffered from both stock and currency weakness. We do not think we are bad at picking stocks on the long side and hope – reasonably we think – for better relative results in the future. Prior to COVID, our longs were markedly better than the index. Unfortunately, if you look at our long book this quarter and since the onset of the COVID pandemic, there is scant evidence that we have added any value by picking stocks to go long.”

3. Lam Research Corporation (NASDAQ:LRCX)

Number of Hedge Fund Holders: 56

Lam Research Corporation (NASDAQ:LRCX) is a leading manufacturer of semiconductor processing equipment. The company’s products are used in the fabrication of integrated circuits. The company has split its stock two times in history and its most recent stock split was a 3-for-1 split in March 2000. The company’s share price has skyrocketed from $45 at the time of the split to $433, as of November 9. Lam Research Corporation (NASDAQ:LRCX) is due for a stock split and ranks among the stocks that may split soon.

On October 19, Lam Research Corporation (NASDAQ:LRCX) posted earnings for the fiscal first quarter of 2023. The company reported an EPS of $10.42 and outperformed estimates by $0.88. The company generated a revenue of $5.07 billion, up 17.88% year over year, and beat expectations by $165.20 million. Shortly after the company’s earnings release, Jefferies analyst Mark Lipacis updated his price target on Lam Research Corporation (NASDAQ:LRCX) to $525 from $535 and maintained a Buy rating on the shares.

At the close of Q2 2022, 56 hedge funds were long Lam Research Corporation (NASDAQ:LRCX) and disclosed stakes of $2.66 billion in the company. As of September 30, Fisher Asset Management is the largest shareholder in the company and has a position worth $830.3 million.

Here is what Artisan Partners had to say about Lam Research Corporation (NYSE:LRCX) in its second-quarter 2022 investor letter:

“Lam is one of the world’s largest suppliers of semiconductor wafer fabrication equipment (WFE). Manufacturing semiconductors is incredibly complex with tolerances measured in nanometers. Consistent improvements in technology are necessary for manufacturers to improve the cost, functionality and volume of semiconductors. WFE manufacturers such as Lam provide the necessary machines and technology. The WFE industry is highly consolidated with only five global players holding more than two thirds of the market. Because of the value-added nature of the equipment and services, the industry is highly profitable with margins and returns on capital that most CEOs can only dream of.”

2. Booking Holdings Inc. (NASDAQ:BKNG)

Number of Hedge Fund Holders: 93

Booking Holdings Inc. (NASDAQ:BKNG) is a leader in the online travel and restaurant services industry and is trading at $1,865 a share, as of November 9. Booking Holdings Inc. (NASDAQ:BKNG) had a reverse stock split back in June 2003 which was a 1-for-6 split. Booking Holdings Inc. (NASDAQ:BKNG) is a viable candidate for a potential stock split because of the company’s leading position, strong track record of profitability and revenue growth, and mature business model. The stock ranks among the stocks that may be splitting soon.

On November 2, Booking Holdings Inc. (NASDAQ:BKNG) announced earnings for the fiscal third quarter of 2022. The company reported an EPS of $53.03 and beat estimates by $3.18. The company generated a revenue of $6.05 billion, up 29.43% year over year, and outperformed Wall Street consensus by $133.35 million.

This November, BofA analyst Justin Post raised his price target on Booking Holdings Inc. (NASDAQ:BKNG) to $2,250 from $2,200 and maintained a Buy rating on the shares. On November 3, Deutsche Bank analyst Lee Horowitz raised his price target on Booking Holdings Inc. (NASDAQ:BKNG) to $2,370 from $2.280 and reiterated a Buy rating on the shares.

At the end of Q2 2022, 93 hedge funds were eager on Booking Holdings Inc. (NASDAQ:BKNG) and disclosed stakes worth $5.45 billion in the company. Of those, Harris Associates was the leading shareholder in the company and held a position worth $1.07 billion.

Here is what RiverPark Funds had to say about Booking Holdings Inc. (NASDAQ:BKNG) in its third-quarter 2022 investor letter:

“We also bought back a small position in Booking Holdings during the quarter. Booking is the world’s leader in online travel, operating in 200 countries with brands including Booking.com, priceline.com, agoda.com, Kayak, Rentalcars.com and OpenTable. The company has been a dominant on-line travel agency for more than a decade with a high margin business model (40% EBITDA margin for 2019 and 28% for 2021) that requires limited capital expenditures, typically less than 3% of revenue, producing $4.5 billion free cash flow for 2019 and $2.5 billion for 2021 (due to the vast COVID disruption). The company has used its free cash flow for episodic acquisitions as well as to return cash to shareholders. BKNG is well positioned in travel as the largest player in online lodging bookings and the second largest player in alternative accommodations. Like all travel companies, Booking was hit hard by the pandemic, but with its high international exposure, we expect the company’s recovery to be equally strong as travel returns.”

1. Thermo Fisher Scientific Inc. (NYSE:TMO)

Number of Hedge Fund Holders: 93

Thermo Fisher Scientific Inc. (NYSE:TMO) is a leading global provider of life sciences solutions, analytical instruments, specialty diagnostics, and laboratory products and services. The company has executed three successful stock splits in its history of being public. The last stock split was a 3-for-2 split in June 1996 and the share price was around $40 at the time of the split. As of November 9, the stock is trading at $485 a share and is ranked among the stocks that may be splitting soon.

On October 26, Thermo Fisher Scientific Inc. (NYSE:TMO) posted strong earnings for the fiscal third quarter of 2022. The company reported earnings per share of $5.08 and outperformed estimates by $0.26. Thermo Fisher Scientific Inc. (NYSE:TMO) generated a revenue of $10.68 billion for the quarter, up 14.44% year over year, and beat expectations by $775.41 million.

On October 4, Evercore ISI analyst Vijay Kumar maintained an Outperform rating and his $580 price target on Thermo Fisher Scientific Inc. (NYSE:TMO). Kumar also added Thermo Fisher Scientific Inc. (NYSE:TMO) to Evercore ISI’s “TAP Outperform” list.

At the end of Q2 2022, 93 hedge funds held stakes in Thermo Fisher Scientific Inc. (NYSE:TMO). The total value of these stakes amounted to $7.81 billion. As of September 30, Fisher Asset Management is the most prominent shareholder in Thermo Fisher Scientific Inc. (NYSE:TMO) and has stakes worth $1.16 billion in the company.

Here is what Baron Funds had to say about Thermo Fisher Scientific Inc. (NYSE:TMO) in its third-quarter 2022 investor letter:

“Thermo Fisher Scientific Inc. (NYSE:TMO) is the world’s largest life sciences tools company. Shares fell due to the rotation out of life sciences tools stocks, driven by concerns about a possible global recession, foreign currency exposure, COVID-related lockdowns in China, and reduced levels of biotechnology funding. We continue to believe Thermo Fisher has a strong long-term growth outlook given a large and growing addressable market coupled with its industry-leading scale, commercial infrastructure, e-commerce platform, supply-chain capabilities, and R&D investment.”

You can also take a look at 10 Best Technology Dividend Stocks To Buy and Best Warren Buffett Stocks To Buy.

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