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Video: What is a Stock Split?
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Calithera Biosciences is a clinical-stage precision oncology biopharmaceutical company developing targeted therapies to redefine treatment for biomarker-specific patient populations. Co.'s product candidate, CB-280, is an oral inhibitor of arginase, developed for the treatment of cystic fibrosis. Co. has also identified CB-668, an orally administered inhibitor of the immune-suppressive enzyme IL4I1. An additional arginase inhibitor, INCB001158, was discovered by Co. and is being developed by Incyte Corporation for oncology and hematology indications. Co. has developed CB-708, a selective, orally-bioavailable small molecule inhibitor of CD73. According to our CALA split history records, CALA has had 2 splits. | |
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CALA (CALA) has 2 splits in our CALA split history database. The first split for CALA took place on July 17, 1996. This was a 2 for 1
split, meaning for each share of CALA 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. CALA's second split took place on June 15, 2022. This was a 1 for 20 reverse split, meaning for each 20 shares of CALA owned pre-split, the shareholder now owned 1 share. For example, a 2000 share position pre-split, became a 100 share position following the split.
When a company such as CALA 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. When a company such as CALA 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 CALA split history from start to finish, an original position size of 1000 shares would have turned into 100 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into CALA shares, starting with a $10,000 purchase of CALA, presented on a split-history-adjusted basis factoring in the complete CALA split history.
Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
10/03/2014 |
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End date: |
02/10/2023 |
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Start price/share: |
$187.00 |
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End price/share: |
$0.09 |
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Dividends collected/share: |
$0.00 |
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Total return: |
-99.95% |
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Average Annual Total Return: |
-59.73% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$4.98 |
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Years: |
8.36 |
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Date |
Ratio |
07/17/1996 | 2 for 1
| 06/15/2022 | 1 for 20 |
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