Netflix (NFLXNFLX - Analyst Report) announced today that its Board of Directors approved a seven-for-one stock split. A dividend of six additional shares for each outstanding share will be payable on July 14 to any investors owning stock by the end of the business day on July 2.

NFLX will begin trading at the new price on July 15. Anyone purchasing shares between July 2 and July 14 will be entitled to a “due-bill” worth six additional shares per each share purchased. These new shares will be delivered by Computershare Trust Company.

Netflix closed Tuesday trading at $681.19 per share and shares of the streaming giant have nearly doubled since the start of the year. Shares were closing in on $700/share after the bell and the announcement though, with a 2.8% gain seen at time of writing.

NFLX shares in focus

Netflix currently has a Zacks Rank #3 (Hold). The company has a good record of growth, exceeding earnings expectations by an average of 21.24% in the past year. However, a value score of “F” and a Forward P/E of $427.24 show that the stock is not a value pick for investors right now.

Although stock splits don’t technically change the value of the stock, companies often utilize these splits to make shares more affordable for smaller investors. If smaller investors become interested in Netflix post-split, increased demand may lead to rising prices. Stock splits can make a company’s shares more marketable and increase liquidity.

Smart investors should keep an eye on Netflix going forward, as it’ll be interesting to see how the market reacts to this news in the coming weeks, and if NFLX can keep its incredible trajectory going forward.