Shares of Internet business-to-business incubator Internet Capital Group (Nasdaq: ICGE) soared more than nine percent on Monday, gaining 15-1/2 to 182-7/16 after the company announced a 2-for-1 stock split. The stock split will be payable on or about December 27th to shareholders of record on December 6th.
Internet Capital Group is obviously red-hot because of the interest surrounding business-to-business companies, but investors might want to be a bit cautious. After all, Internet Capital Group also announced Monday that it is selling six million more shares to the public. Adding shares to the float can slow down a stock’s climb, if not drag it down a bit.
Internet Capital Group already has a whopping valuation of more than $23 billion and is trading more than 15 times higher than its August initial public offering price of $12 a share. Investors in Internet Capital Group might want to consider taking some profits.