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Video: What is a Stock Split?
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Azul is a holding company. Through its subsidiaries, Co. provides air transportation services in Brazil. Co.'s principal product is the scheduled air transportation of customers. In addition, Co. generate sales through its wholly-owned TudoAzul loyalty program, its cargo transportation operations, and its travel and tourism operations. Co. provides flights to every region in Brazil and to select international destinations. Co.'s main hub is in Campinas at Viracopos airport. From Viracopos airport, Co. provided non-stop service to several Brazilian cities. Co.'s other hub is located at Belo Horizonte's main airport. Co. also has a hub in Recife. According to our AZUL split history records, Azul SA has had 1 split. | |
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Azul SA (AZUL) has 1 split in our AZUL split history database. The split for AZUL took place on October 21, 1998. This was a 1 for 5
reverse split, meaning for each 5
shares of AZUL owned pre-split, the shareholder now owned 1 share. For example, a 1000 share position pre-split, became a 200 share position following the split.
When a company such as Azul SA 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 AZUL split history from start to finish, an original position size of 1000 shares would have turned into 200 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Azul SA shares, starting with a $10,000 purchase of AZUL, presented on a split-history-adjusted basis factoring in the complete AZUL split history.
Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
04/12/2017 |
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End date: |
03/28/2024 |
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Start price/share: |
$21.94 |
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End price/share: |
$7.77 |
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Dividends collected/share: |
$0.00 |
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Total return: |
-64.59% |
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Average Annual Total Return: |
-13.85% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$3,540.73 |
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Years: |
6.96 |
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Date |
Ratio |
10/21/1998 | 1 for 5
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