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Video: What is a Stock Split?
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Dawson Geophysical is a provider of North American onshore seismic data acquisition services with operations throughout the continental U.S. and Canada. Co. acquires and processes 2-D, 3-D and multi-component seismic data for its clients, ranging from oil and gas companies to independent oil and gas operators as well as providers of multi-client data libraries. Co.'s seismic data acquisition crews supply seismic data primarily to companies engaged in the exploration and development of oil and natural gas on land and in land-to-water transition areas. Seismic acquisition services of Co.'s subsidiary, Eagle Canada Seismic Services ULC, are also used by the potash mining industry in Canada. According to our DWSN split history records, Dawson Geophysical has had 2 splits. | |
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Dawson Geophysical (DWSN) has 2 splits in our DWSN split history database. The first split for DWSN took place on February 12, 2015. This was a 1 for 3 reverse split, meaning for each 3 shares of DWSN owned pre-split, the shareholder now owned 1 share. For example, a 1000 share position pre-split, became a 333.333333333333 share position following the split. DWSN's second split took place on May 11, 2018. This was a 105 for 100 split, meaning for each 100 shares of DWSN owned pre-split, the shareholder now owned 105 shares. For example, a 333.333333333333 share position pre-split, became a 350 share position following the split.
When a company such as Dawson Geophysical 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 Dawson Geophysical 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 DWSN split history from start to finish, an original position size of 1000 shares would have turned into 350 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Dawson Geophysical shares, starting with a $10,000 purchase of DWSN, presented on a split-history-adjusted basis factoring in the complete DWSN split history.
Growth of $10,000.00
With Dividends Reinvested
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Start date: |
04/28/2014 |
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End date: |
04/24/2024 |
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Start price/share: |
$14.51 |
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End price/share: |
$1.54 |
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Starting shares: |
689.18 |
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Ending shares: |
820.45 |
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Dividends reinvested/share: |
$0.32 |
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Total return: |
-87.37% |
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Average Annual Total Return: |
-18.69% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$1,263.82 |
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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: |
04/28/2014 |
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End date: |
04/24/2024 |
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Start price/share: |
$14.51 |
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End price/share: |
$1.54 |
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Dividends collected/share: |
$0.32 |
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Total return: |
-87.18% |
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Average Annual Total Return: |
-18.57% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$1,282.59 |
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Years: |
10.00 |
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Date |
Ratio |
02/12/2015 | 1 for 3 | 05/11/2018 | 105 for 100 |
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