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 Video: What is a Stock Split?
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| First American Financial is a holding company. Through its subsidiaries, Co. is engaged in the business of providing title insurance, settlement services and other financial services and risk solutions through its title insurance and services segment and its specialty insurance segment. The title insurance and services segment provides title insurance, closing and/or escrow services and similar or related services domestically and internationally in connection with residential and commercial real estate transactions. The specialty insurance segment sells home warranty products and contains the remaining operations of its property and casualty insurance business that is being wound down. According to our FAF split history records, First American Financial has had 2 splits. | |
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First American Financial (FAF) has 2 splits in our FAF split history database. The first split for FAF took place on January 16, 1998. This was a 3 for 2
split, meaning for each 2
shares of FAF 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. FAF's second split took place on July 20, 1998. This was a 3 for 1
split, meaning for each share of FAF owned pre-split, the shareholder now owned 3 shares. For example, a 1500 share position pre-split, became a 4500 share position following the split.
When a company such as First American Financial 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 FAF split history from start to finish, an original position size of 1000 shares would have turned into 4500 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into First American Financial shares, starting with a $10,000 purchase of FAF, presented on a split-history-adjusted basis factoring in the complete FAF split history.
Growth of $10,000.00
With Dividends Reinvested
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| Start date: |
06/05/2013 |
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| End date: |
06/02/2023 |
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| Start price/share: |
$22.49 |
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| End price/share: |
$56.86 |
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| Starting shares: |
444.64 |
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| Ending shares: |
602.25 |
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| Dividends reinvested/share: |
$14.42 |
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| Total return: |
242.44% |
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| Average Annual Total Return: |
13.10% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$34,235.73 |
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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: |
06/05/2013 |
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| End date: |
06/02/2023 |
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| Start price/share: |
$22.49 |
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| End price/share: |
$56.86 |
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| Dividends collected/share: |
$14.42 |
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| Total return: |
216.94% |
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| Average Annual Total Return: |
12.23% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$31,692.20 |
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| Years: |
10.00 |
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| Date |
Ratio |
| 01/16/1998 | 3 for 2
| | 07/20/1998 | 3 for 1
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