Imagine there are two companies in the same industry, and the same country, and the same stock market. One has a current share price of $50 a share, and the other has a share price of $75 a share.
which is a better investment? which is a better company?
Let me restate it. Imagine two companies one with a share price of $50 and one with a share price of $75. Which is better?
With no other information it is impossible to judge which one is better. The share price, unless the stock price is so low that they are going to be de-listed, doesn't tell you anything about the quality of the company.
If you knew the price change in the last 12 moths that will tell you something. If you knew how sales were changing, or how their market share in the key parts of their industry were changing you can estimate how the share price might change in the next 12 months. But in a vacuum share price is meaningless.
Management cares if the price is dropping. That means the market is concerned. But $75 per share is essentially the same as $50 a share unless you know more about a company.
Some companies like to keep the price in a range because it makes it seem more accessible to the average person. Some companies never split because it makes the stock seem more rare or exclusive.
A stock with a share price of $50 or $75 makes no difference in the ability to get involved in mergers or acquisitions. The key metric in that case is how much is the total value of the two companies. That total value is price x number of shares. Even if the company does a split to change the stock price it also changes the number of shares, and that keeps the total the same.
Share price, in a vacuum, is meaningless.