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 Video: What is a Stock Split?
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| Alaska Air Group operates two airlines, Alaska Airlines, Inc. (Alaska) and Horizon Air Industries, Inc. (Horizon). Co. also includes McGee Air Services, an aviation services provider. Co. has three operating segments: Mainline, which includes scheduled air transportation on Alaska's Boeing and Airbus jet aircraft for passengers and cargo throughout the U.S., and in parts of Mexico, Costa Rica and Belize; Regional, which includes Horizon's and other third-party carriers' scheduled air transportation for passengers across a shorter distance network within the U.S. and Canada under capacity purchase agreements (CPA); and Horizon, which includes the capacity sold to Alaska under a CPA. According to our ALK split history records, Alaska Air Group has had 2 splits. | |
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Alaska Air Group (ALK) has 2 splits in our ALK split history database. The first split for ALK took place on March 19, 2012. This was a 2 for 1 split, meaning for each share of ALK 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. ALK's second split took place on July 10, 2014. This was a 2 for 1 split, meaning for each share of ALK 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 Alaska Air Group 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 ALK 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 Alaska Air Group shares, starting with a $10,000 purchase of ALK, presented on a split-history-adjusted basis factoring in the complete ALK split history.
Growth of $10,000.00
With Dividends Reinvested
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| Start date: |
10/07/2014 |
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| End date: |
10/04/2024 |
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| Start price/share: |
$42.80 |
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| End price/share: |
$42.48 |
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| Starting shares: |
233.64 |
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| Ending shares: |
256.04 |
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| Dividends reinvested/share: |
$6.28 |
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| Total return: |
8.77% |
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| Average Annual Total Return: |
0.84% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$10,872.47 |
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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: |
10/07/2014 |
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| End date: |
10/04/2024 |
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| Start price/share: |
$42.80 |
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| End price/share: |
$42.48 |
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| Dividends collected/share: |
$6.28 |
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| Total return: |
13.93% |
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| Average Annual Total Return: |
1.31% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$11,389.99 |
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| Years: |
10.00 |
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| Date |
Ratio |
| 03/19/2012 | 2 for 1 | | 07/10/2014 | 2 for 1 |
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