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 Video: What is a Stock Split?
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| Cognizant Technology Solutions Corporation is a professional services company. Co. operates through four segments: Financial Services (FS), Health Sciences (HS), Products and Resources (P&R), and Communications, Media and Technology (CMT). The FS segment includes banking, capital markets, payments and insurance companies. Its HS segment consists of healthcare providers and payers, and life sciences companies, including pharmaceutical, biotech and medical device companies. Its P&R segment includes manufacturers, automakers, retailers and travel and hospitality companies, as well as companies providing logistics, energy and utility services. According to our CTSH split history records, Cognizant Technology Solutions has had 5 splits. | |
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Cognizant Technology Solutions (CTSH) has 5 splits in our CTSH split history database. The first split for CTSH took place on March 17, 2000. This was a 2 for 1
split, meaning for each share of CTSH 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. CTSH's second split took place on April 02, 2003. This was a 3 for 1 split, meaning for each share of CTSH owned pre-split, the shareholder now owned 3 shares. For example, a 2000 share position pre-split, became a 6000 share position following the split. CTSH's third split took place on June 18, 2004. This was a 2 for 1 split, meaning for each share of CTSH owned pre-split, the shareholder now owned 2 shares. For example, a 6000 share position pre-split, became a 12000 share position following the split. CTSH's 4th split took place on October 17, 2007. This was a 2 for 1 split, meaning for each share of CTSH owned pre-split, the shareholder now owned 2 shares. For example, a 12000 share position pre-split, became a 24000 share position following the split. CTSH's 5th split took place on March 10, 2014. This was a 2 for 1 split, meaning for each share of CTSH owned pre-split, the shareholder now owned 2 shares. For example, a 24000 share position pre-split, became a 48000 share position following the split.
When a company such as Cognizant Technology Solutions 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 CTSH split history from start to finish, an original position size of 1000 shares would have turned into 48000 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Cognizant Technology Solutions shares, starting with a $10,000 purchase of CTSH, presented on a split-history-adjusted basis factoring in the complete CTSH split history.
Growth of $10,000.00
With Dividends Reinvested
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| Start date: |
12/11/2014 |
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| End date: |
12/09/2024 |
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| Start price/share: |
$51.51 |
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| End price/share: |
$80.64 |
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| Starting shares: |
194.14 |
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| Ending shares: |
215.56 |
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| Dividends reinvested/share: |
$7.33 |
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| Total return: |
73.83% |
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| Average Annual Total Return: |
5.68% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$17,377.76 |
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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: |
12/11/2014 |
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| End date: |
12/09/2024 |
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| Start price/share: |
$51.51 |
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| End price/share: |
$80.64 |
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| Dividends collected/share: |
$7.33 |
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| Total return: |
70.78% |
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| Average Annual Total Return: |
5.50% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$17,083.95 |
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| Years: |
10.00 |
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| Date |
Ratio |
| 03/17/2000 | 2 for 1
| | 04/02/2003 | 3 for 1 | | 06/18/2004 | 2 for 1 | | 10/17/2007 | 2 for 1 | | 03/10/2014 | 2 for 1 |
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