Companies generally decide to engage in stock splits after their shares have soared to a level that may put them out of reach for many retail investors. A stock split doesn't change the real market value of a company, nor does it alter the value of any investor's holdings, but it does bring down the price of each individual share. Companies do this by issuing more shares to current holders.

Last year, top companies including Amazon and Tesla completed such maneuvers. A stock split itself doesn't spur improved share performance. But it does indicate that a company has been doing well -- so it's worth checking out the companies that choose to split their stock and evaluating whether they are likely to continue to excel.

Of course, it's impossible to predict which company may perform a stock split with 100% accuracy, but a top performer that has been setting new share price highs could make a good candidate. And that's why I'm taking a close look at Regeneron Pharmaceuticals (NASDAQ: REGN), which is trading at about $830 after touching a recent peak of $847.50. Could this big biotech company be next to announce a split?

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Source Fool.com