Cisco Stock Split History: Why the Networking Giant Won't Split Anytime Soon
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For long-term investors, Cisco Systems (NASDAQ: CSCO) has been huge disappointment for years. After enjoying huge run-ups in the tech boom in the 1990s, Cisco was briefly the most valuable stock in the U.S. market. After the tech bust in the early 2000s, Cisco never regained all of its lost momentum, and share prices have been largely stagnant ever since.
2017 was a year of transition for Cisco, as it aimed to overcome falling revenue to make a more lasting impression on the rapidly evolving tech industry. The company's stock price rose sharply, and that has gotten some investors excited about the possibility that a return to more regular stock splits might be in Cisco's future. Shareholders shouldn't expect an imminent move, but if Cisco can get back on the technology bandwagon, then it might not be too long before the tech giant returns to its winning ways. Let's look more closely at Cisco to see how it's trying to get back on the upswing.
Cisco's history of stock splits
Here are the dates and split ratios for the stock splits that Cisco has done in the past:
| Date of Split | Split Ratio | 100 Shares in 1990 Would Now Be |
|---|---|---|
| March 1, 1991 | 2-for-1 | 200 shares |
| March 6, 1992 | 2-for-1 | 400 shares |
| March 5, 1993 | 2-for-1 | 800 shares |
| March 4, 1994 | 2-for-1 | 1,600 shares |
| Feb. 2, 1996 | 2-for-1 | 3,200 shares |
| Nov. 18, 1997 | 3-for-2 | 4,800 shares |
| Aug. 14, 1998 | 3-for-2 | 7,200 shares |
| May 24, 1999 | 2-for-1 | 14,400 shares |
| Feb. 22, 2000 | 2-for-1 | 28,800 shares |
Data source: Cisco investor relations.
The 1990s were simply an amazing time for Cisco Systems. The company was able to do a stock split on an almost yearly basis, missing 1995 but generally remaining on a steep curve higher.
Moreover, the share prices at which Cisco made its stock splits were remarkably consistent. Within a year of going public at an IPO price of $18 per share, Cisco traded in the $50s, prompting its first stock split. The following year, the stock had climbed to nearly $80 per share before its next move, and Cisco shares routinely traded roughly in the $80 to $90 range at the time that the company made subsequent splits.
Later in the decade, Cisco decided to do 3-for-2 splits, letting the share price rise to slightly higher levels before pulling the trigger in 1998. In both 1999 and 2000, Cisco reached triple-digit levels before the company moved forward with 2-for-1 splits.
Cisco made plenty of tech investors a lot of money. For every IPO share, initial investors in Cisco ended up with 288 shares in early 2000 worth $72 a piece, turning $18 into more than $20,000.