Will Any of These 3 High-Priced Stocks Split Their Stock?

Trying to figure out which high-priced investment will declare a stock split can give you a splitting headache.

It could be worth the throbbing. It may be a zero-sum game, as share count and price adjust proportionally, but investors tend to bid up investments after they announce a stock split. Whether they believe that the split is prompted by improving fundamentals or just a desire to have broader appeal to retail investors, investors are drawn to split candidates.

Let's take a closer look at Booking Holdings (NASDAQ: BKNG), NVR (NYSE: NVR), and Seaboard (NYSEMKT: SEB), three of four U.S.-listed stocks with the highest price tags. Their high share prices make them potential candidates for a stock split. Unfortunately, just one of them appears to have even a remote chance of declaring a split anytime soon.

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1. Booking Holdings

The online travel specialist behind Priceline, Kayak, and its namesake booking website is the most likely of these names to declare a stock split. It's the one name on this list that has already done so -- only it was a reverse stock split 23 years ago. Booking Holdings was a penny stock in the sudsy aftermath of the dot-com bubble.

This is also the most consumer-facing of the three businesses. This is a point worth making, as it's the one that likely appeals the most to individual investors who won't spring a half-million dollars for a round lot of shares.

Yes, you can buy as little as a single share. You can buy even less than a single share if your broker allows the purchase of fractional shares. But a forward split increases share count and lowers share price, making the stock look more affordable.

2. NVR

NVR may as well be shorthand for when the popular homebuilder will announce a stock split: NeVeR. The shares trade at $7,762 per share. It's the second-highest price point for exchange-listed companies. The only name with a higher sticker price is Berkshire Hathaway, which I left out of my potential stock-split list because Berkshire Hathaway stock is also available through the lower-priced Class B shares for those looking for a more accessible price point.

NVR has an asset-light business model and a long track record of beating the market. It also has an equally long record of avoiding a stock dividend to bring down the value of its shares. It's not likely to go for a split anytime soon.

3. Seaboard

Finally, we have Seaboard, with the lowest price of the three. Its diversified operations cover pork production, grain processing, and maritime shipping. It's a volatile feast-or-famine business, and that could seal its fate as a potential stock split candidate.

Seaboard has posted double-digit revenue growth in three of the last five years, but negative top-line results for the other two. It could crush the shares if it splits after a strong year, only to see the lower price shrink further during a financial slump. Seaboard doesn't fit the role of a prototypical growth stock, so it's probably not in a rush to go the stock-split route.

Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway, Booking Holdings, and NVR. The Motley Fool has a disclosure policy.