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Video: What is a Stock Split?
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ADial Pharmaceuticals is a clinical-stage biopharmaceutical company focused on the development of therapeutics for the treatment or prevention of addiction and related disorders. Co.'s investigational new drug product, AD04, is being developed as a therapeutic agent for the treatment of alcohol use disorder. Co. has a license from the University of Virginia Patent Foundation to commercialize its AD04. The active pharmaceutical agent in AD04, Co.'s investigational new drug product, is ondansetron, which is also the active ingredient in Zofran®, an approval for nausea and vomiting post-operatively and after chemotherapy or radiation treatment and is commercially available in generic form. According to our ADIL split history records, ADial Pharmaceuticals has had 1 split. | |
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ADial Pharmaceuticals (ADIL) has 1 split in our ADIL split history database. The split for ADIL took place on August 07, 2023. This was a 1 for 25 reverse split, meaning for each 25 shares of ADIL owned pre-split, the shareholder now owned 1 share. For example, a 1000 share position pre-split, became a 40 share position following the split.
When a company such as ADial Pharmaceuticals 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 ADIL split history from start to finish, an original position size of 1000 shares would have turned into 40 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into ADial Pharmaceuticals shares, starting with a $10,000 purchase of ADIL, presented on a split-history-adjusted basis factoring in the complete ADIL split history.
Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
07/30/2018 |
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End date: |
04/23/2024 |
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Start price/share: |
$100.25 |
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End price/share: |
$1.70 |
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Dividends collected/share: |
$0.00 |
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Total return: |
-98.30% |
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Average Annual Total Return: |
-50.87% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$169.54 |
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Years: |
5.74 |
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Date |
Ratio |
08/07/2023 | 1 for 25 |
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