3 Stock Split Stocks to Buy in June

A stock split is when a company divides its shares into more shares. It changes nothing fundamental about the company, and existing shareholders simply get more shares. In a 2-for-1 stock split, all shareholders receive an extra share, and the valuation remains the same.

And although this may look like something benign, it does have an impact on the price action of the stock. Prolonged upward price action usually triggers forward stock splits, and stock split announcements trigger more positivity. Investors interpret it as a signal that management expects further bullish price action, and the uptick in confidence causes the stock to trend up.

Research shows that stocks tend to outperform the S&P 500 in the year following a stock split. Here are three stock splits to look into in June:

APi Group (APG)

APi Group (NYSE:APG) is a safety services and specialty services company that provides fire protection and HVAC services. Much like many of the stocks in this sector, it has seen solid bullish momentum and is up over 291% in the past five years. This bullish momentum has only accelerated, and APG stock is up 34% year-to-date.

Revenue grew 7.4% year-over-year in Q1 to $1.72 billion and beat consensus estimates by $60 million. Adjusted EBITDA also rose 10.3% to $193 million, and EPS of $0.37 met expectations. Simultaneously, management upped expectations for full-year sales to $7.5 billion at midpoint and EBITDA to $985 million to $1.04 billion.

Last month, APi Group also said that it is eyeing over $10 billion in revenue, over 16% in EBITDA margins, and 60% of sales from inspection services by 2028.

The stock does trade at nearly 105 times earnings. That’s definitely expensive, but not that expensive if you look at APG’s history. Historically, investors have paid 96 times earnings for the stock.

APG stock will undergo a 3-for-2 stock split, effective 30 June 2025.

Pegasystems (PEGA)

Pegasystems (NASDAQ:PEGA) is a process automation platform. It uses AI and low-code app development to help businesses automate their operations. Since the AI boom, this has been a very hot sector, and that’s mainly why the stock has surged back after a 75%-plus crash from 2021 highs.

It bottomed out in the last quarter of 2022 and is up over 210% since. PEGA stock is still 31% below its peak, and considering the AI automation trend is only accelerating, it could easily surge past its peak in the coming months. The broader market would have to cooperate for that, but the long-term trends here are solid.

Revenue grew 44.1% to $475.6 million, and it beat analyst estimates by 33.23%. Net profit margin also surged to 18%, and tech companies that hold at such margins and keep growing at double digits can trade at over 10 times sales.

PEGA stock currently trades at 49 times earnings, which is lower than its historical average of over 67 times. If you take out non-recurring items (NRI), the earnings multiple drops to just 29. Historically, investors have paid 50 times earnings (minus NRI) here.

PEGA stock is now turning into a more shareholder-friendly company. It started significantly expanding its buybacks due to the bottom-line growth.

PEGA stock is undergoing a 2-for-1 stock split on June 23, 2025.

Interactive Brokers Group (IBKR)

Interactive Brokers Group (NASDAQ:IBKR) is an online brokerage firm. It has also been on an explosive rally. IBKR stock is up over 385% over the past five years.

Revenue has increased from $2.94 billion in 2021 to $9.32 billion in 2024. This company earns spread income on idle client cash and margin loans. Interest rates have surged and are still being held up, so the company’s bottom line is surging too.

The enthusiasm has continued due to the Federal Reserve delaying interest rate cuts and momentum in its core business. The interest income here is where the company derives most of its revenue from. Rate cuts are still inevitable, but Wall Street is happy paying more due to the core business doing much better.

Active accounts reached 3.79 million in May, up 32% year-over-year. Client equity grew 29% to $628 billion in the same period. Even if cash yields compress, a larger asset base will offset that.

Not only that, stock, option, and futures volumes rose 47%, 25%, and 16% respectively in Q1 2025. This caused commission revenue to surge 36% to a record $514 million.

Interactive Brokers is a company that feeds off market volatility. There has been plenty of that in the past three years, and there will be more to come with tariff talks underway and a rate cut cycle ahead.

IBKR stock also comes with a 0.53% dividend yield. The 3-year dividend growth rate is at 28.6%, which is better than almost 85% of its peers.

IBKR will undergo a 4-for-1 stock split on June 18, 2025.

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