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Video: What is a Stock Split?
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Canopy Growth is a cannabis consumer packaged goods (CPG) company which produces, distributes, and sells a range of cannabis, hemp, and CPG products. Co.'s reportable segments are: Canada cannabis, which produces, distributes and sells cannabis, hemp and cannabis products in Canada; Rest-of-world cannabis, which produces, distributes and sells cannabis, hemp and cannabis products internationally; Storz & Bickel GmbH, which produces, distributes and sells vaporizers; BioSteel Sports Nutrition Inc., which produces, distributes and sells consumer packaged goods; and This Works Products Ltd., which produces, distributes and sells beauty, skincare, wellness and sleep products. According to our CGC split history records, Canopy Growth has had 2 splits. | |
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Canopy Growth (CGC) has 2 splits in our CGC split history database. The first split for CGC took place on December 21, 1993. This was a 3 for 2
split, meaning for each 2
shares of CGC owned pre-split, the shareholder now owned 3 shares. For example, a 1000 share position pre-split, became a 1500 share position following the split. CGC's second split took place on December 20, 2023. This was a 1 for 10 reverse split, meaning for each 10 shares of CGC owned pre-split, the shareholder now owned 1 share. For example, a 1500 share position pre-split, became a 150 share position following the split.
When a company such as Canopy Growth 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 Canopy Growth 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 CGC split history from start to finish, an original position size of 1000 shares would have turned into 150 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Canopy Growth shares, starting with a $10,000 purchase of CGC, presented on a split-history-adjusted basis factoring in the complete CGC split history.
Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
04/22/2014 |
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End date: |
04/18/2024 |
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Start price/share: |
$31.08 |
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End price/share: |
$7.83 |
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Dividends collected/share: |
$0.00 |
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Total return: |
-74.81% |
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Average Annual Total Return: |
-12.88% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$2,519.66 |
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Years: |
10.00 |
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Date |
Ratio |
12/21/1993 | 3 for 2
| 12/20/2023 | 1 for 10 |
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