We haven’t been able to discern any consistent or reliable reaction that a stock has to a pending stock split. However, I would note that a stock with an excessive number of stock splits within a relatively short period of time, or a number of large splits such as 3-for-1 or larger should be checked for signs of topping. Often, this occurs after a stock has had a large upward move. A stock split does not fundamentally impact the company in terms of earnings per share and a host of other fundamental measurements. However, companies will often split their shares in order to bring down the price of the stock as a way of making it more appealing and/or accessible to investors. Also, splitting the stock will increase the float, which may make it more accessible to institutional investors.