Investors are always on the lookout for the next stock split -- for a couple of reasons. These operations that increase the number of shares and reduce the per-share price accordingly often make it easier to invest in a high-flying stock. And they also generally signal that management is confident about a company's future, with the idea that the stock has what it takes to soar once again from its new lower price.

How do you identify the next potential stock-split company? It's generally one that's seen its stock soar in recent times, and sometimes these players have split their stock in the past, showing they're amenable to such operations.

Today, one that could be next on the list is Intuitive Surgical (ISRG -2.44%), the world's leading robotic surgery company. Intuitive Surgical's shares have climbed nearly 200% over the past five years and now trade for about $600 apiece. But is Intuitive Surgical really ripe for a stock split? Let's find out.

Image source: Getty Images.

How stock splits work

First, though, let's talk a bit about stock splits in general. As mentioned, they're meant to lower a per-share price, and they do this through the issuance of more shares to current holders. So in a 10-for-1 split, for example, an investor who had one share prior to the split would hold 10 after the split.

The operation doesn't change the total value of your investment, though, or anything fundamental about a company. So, investors shouldn't buy or sell a stock just because it completed a stock split. But these maneuvers are positive because they make a stock once trading for hundreds or even thousands of dollars easier for a broader range of investors to access at a lower price point. Even though fractional shares exist, not all brokerages offer them, putting higher-priced stocks out of reach for some investors.

And certain price levels, such as around $1,000 per share, may represent a psychological barrier for some investors -- they may view the stock as expensive even though valuation looks just fine.

Now, let's consider the case for an Intuitive Surgical stock split. The company has split its stock three times before -- in 2003, 2017, and 2021. So, we know that Intuitive Surgical considers such an operation useful. There were only four years between the last two operations, and if Intuitive Surgical keeps that pace going, it may announce a split this year.

Intuitive Surgical's last two stock splits

That said, Intuitive Surgical launched its last two splits after shares soared to more than $1,000. Today, they're a little more than halfway there. This suggests the company might not rush into a split to lower its price just yet, even if it's optimistic about what's ahead. Instead, Intuitive Surgical may wait to see how the stock progresses this year -- it's already climbed about 15% since the start of January.

And Intuitive Surgical has a big catalyst to keep this momentum going. The company recently launched the latest version of its flagship da Vinci surgical robot -- the da Vinci 5 -- and the ongoing rollout should add to earnings in the quarters to come. In the most recent quarter, Intuitive Surgical placed 493 da Vinci systems and 174 of them were da Vinci 5 platforms.

Intuitive Surgical already is the leading robotic surgery company worldwide and has established a long track record of growth. And the momentum continues. Also in the latest quarter, procedure volume and the company's installed base each increased in the double digits year over year. All of this could keep earnings strong and the share price climbing toward the $1,000 level that previously coincided with the announcement of a stock split.

What will Intuitive Surgical do next?

Of course, it's impossible to predict with 100% certainty whether Intuitive Surgical will announce a stock split in the near future. But, considering the evidence I mentioned above, I think Intuitive Surgical will wait for the stock to potentially reach or surpass $1,000 before launching such a move.

Should you wait for that moment to buy the stock? Not unless you have to for practical reasons -- for example, you don't have access to fractional shares and the current stock price isn't within your budget. But, if that isn't a problem for you, there's no need to wait for a split to get in on this healthcare robotics leader that has what it takes to win over the long term.