|
Video: What is a Stock Split?
|
|
Aurora Cannabis is a holding company. Through its subsidiaries, Co. is focused on the production, distribution and sale of cannabis related products in Canada and internationally. Co. conducts the following business activities: production, distribution and sale of medical and consumer cannabis products in Canada; distribution of wholesale medical cannabis in the European Union; distribution of wholesale medical cannabis in various international markets, including Australia, Caribbeans, South America and Israel; and distribution and sale of hemp-derived cannabidiol products in the U.S. market. According to our ACB split history records, Aurora Cannabis has had 2 splits. | |
|
Aurora Cannabis (ACB) has 2 splits in our ACB split history database. The first split for ACB took place on May 11, 2020. This was a 1 for 12 reverse split, meaning for each 12 shares of ACB owned pre-split, the shareholder now owned 1 share. For example, a 1000 share position pre-split, became a 83.3333333333333 share position following the split. ACB's second split took place on February 20, 2024. This was a 1 for 10 reverse split, meaning for each 10 shares of ACB owned pre-split, the shareholder now owned 1 share. For example, a 83.3333333333333 share position pre-split, became a 8.33333333333333 share position following the split.
When a company such as Aurora Cannabis conducts a reverse share split, it is usually because shares have fallen to a lower per-share pricepoint than the company would like. This can be important because, for example, certain types of mutual funds might have a limit governing which stocks they may buy, based upon per-share price. The $5 and $10 pricepoints tend to be important in this regard. Stock exchanges also tend to look at per-share price, setting a lower limit for listing eligibility. So when a company does a reverse split, it is looking mathematically at the market capitalization before and after the reverse split takes place, and concluding that if the market capitilization remains stable, the reduced share count should result in a higher price per share.
Looking at the ACB split history from start to finish, an original position size of 1000 shares would have turned into 8.33333333333333 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Aurora Cannabis shares, starting with a $10,000 purchase of ACB, presented on a split-history-adjusted basis factoring in the complete ACB split history.
Growth of $10,000.00
Without Dividends Reinvested
|
Start date: |
07/16/2014 |
|
End date: |
04/17/2024 |
|
Start price/share: |
$76.70 |
|
End price/share: |
$5.79 |
|
Dividends collected/share: |
$0.00 |
|
Total return: |
-92.45% |
|
Average Annual Total Return: |
-23.26% |
|
Starting investment: |
$10,000.00 |
|
Ending investment: |
$754.44 |
|
Years: |
9.76 |
|
|
|
Date |
Ratio |
05/11/2020 | 1 for 12 | 02/20/2024 | 1 for 10 |
|
|