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 Video: What is a Stock Split?
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| Kennametal is a manufacturer of tungsten carbide metal cutting tooling. Co.'s capability includes the development and application of tungsten carbides, ceramics, super-hard materials and solutions used in metal cutting and wear applications. Co.'s operating segments are: Metal Cutting, which develops and manufactures tooling and metal cutting products and services and provides an assortment of metal cutting solutions to end markets; and Infrastructure, which produces engineered tungsten carbide and ceramic components, earth-cutting tools, and metallurgical powders, primarily for the aerospace and defense, energy, earthworks and general engineering end markets. According to our KMT split history records, Kennametal has had 2 splits. | |
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Kennametal (KMT) has 2 splits in our KMT split history database. The first split for KMT took place on August 23, 1994. This was a 2 for 1
split, meaning for each share of KMT owned pre-split, the shareholder now owned 2 shares. For example, a 1000 share position pre-split, became a 2000 share position following the split. KMT's second split took place on December 19, 2007. This was a 2 for 1 split, meaning for each share of KMT owned pre-split, the shareholder now owned 2 shares. For example, a 2000 share position pre-split, became a 4000 share position following the split.
When a company such as Kennametal splits its shares, the market capitalization before and after the split takes place remains stable, meaning the shareholder now owns more shares but each are valued at a lower price per share. Often, however, a lower priced stock on a per-share basis can attract a wider range of buyers. If that increased demand causes the share price to appreciate, then the total market capitalization rises post-split. This does not always happen, however, often depending on the underlying fundamentals of the business.
Looking at the KMT split history from start to finish, an original position size of 1000 shares would have turned into 4000 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Kennametal shares, starting with a $10,000 purchase of KMT, presented on a split-history-adjusted basis factoring in the complete KMT split history.
Growth of $10,000.00
With Dividends Reinvested
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| Start date: |
04/25/2014 |
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| End date: |
04/23/2024 |
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| Start price/share: |
$46.03 |
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| End price/share: |
$24.35 |
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| Starting shares: |
217.25 |
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| Ending shares: |
279.21 |
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| Dividends reinvested/share: |
$7.90 |
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| Total return: |
-32.01% |
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| Average Annual Total Return: |
-3.78% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$6,801.55 |
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| Years: |
10.00 |
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Growth of $10,000.00
Without Dividends Reinvested
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| Start date: |
04/25/2014 |
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| End date: |
04/23/2024 |
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| Start price/share: |
$46.03 |
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| End price/share: |
$24.35 |
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| Dividends collected/share: |
$7.90 |
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| Total return: |
-29.94% |
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| Average Annual Total Return: |
-3.49% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$7,009.40 |
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| Years: |
10.00 |
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| Date |
Ratio |
| 08/23/1994 | 2 for 1
| | 12/19/2007 | 2 for 1 |
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