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Video: What is a Stock Split?
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Dermata Therapeutics is a clinical-stage medical dermatology company focused on identifying, developing, and commercializing pharmaceutical product candidates for the treatment of medical and aesthetic skin conditions and diseases. Co.'s main product candidate, DMT310, is intended to utilize its Spongilla technology for a once weekly treatment of a variety of skin diseases with its initial focus being for the treatment of acne vulgaris. Co.'s second product candidate utilizing its Spongilla technology is its combination treatment, DMT410. DMT410 is intended to consist of one treatment of Co.'s sponge powder followed by one topical application of botulinum toxin for delivery into the dermis. According to our DRMA split history records, Dermata Therapeutics has had 1 split. | |
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Dermata Therapeutics (DRMA) has 1 split in our DRMA split history database. The split for DRMA took place on March 14, 2023. This was a 1 for 16 reverse split, meaning for each 16 shares of DRMA owned pre-split, the shareholder now owned 1 share. For example, a 1000 share position pre-split, became a 62.5 share position following the split.
When a company such as Dermata Therapeutics 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 DRMA split history from start to finish, an original position size of 1000 shares would have turned into 62.5 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Dermata Therapeutics shares, starting with a $10,000 purchase of DRMA, presented on a split-history-adjusted basis factoring in the complete DRMA split history.
Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
08/16/2021 |
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End date: |
04/26/2024 |
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Start price/share: |
$84.48 |
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End price/share: |
$0.34 |
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Dividends collected/share: |
$0.00 |
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Total return: |
-99.59% |
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Average Annual Total Return: |
-87.03% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$40.61 |
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Years: |
2.70 |
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Date |
Ratio |
03/14/2023 | 1 for 16 |
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