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Video: What is a Stock Split?
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Farmer Bros. is a coffee roaster, wholesaler, equipment servicer and distributor of coffee, tea and other allied products. Co.'s products and services include: roast and ground coffees, including Direct Trade, Project D.I.R.E.C.T.®, and Fair Trade Certified®; frozen liquid coffee; iced and hot teas, including Rainforest Alliance Certified; culinary products including spices, pancake and biscuit mixes, gravy and sauce mixes, soup bases, dressings, syrups and sauces, and coffee-related products; other beverages including cappuccino, cocoa, granitas and other blender-based beverages; and installation, repair and refurbishment services for coffee, tea and juice equipments. According to our FARM split history records, Farmer Bros. has had 1 split. | |
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Farmer Bros. (FARM) has 1 split in our FARM split history database. The split for FARM took place on May 11, 2004. This was a 10 for 1 split, meaning for each share of FARM owned pre-split, the shareholder now owned 10 shares. For example, a 1000 share position pre-split, became a 10000 share position following the split.
When a company such as Farmer Bros. 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 FARM split history from start to finish, an original position size of 1000 shares would have turned into 10000 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Farmer Bros. shares, starting with a $10,000 purchase of FARM, presented on a split-history-adjusted basis factoring in the complete FARM split history.
Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
09/17/2014 |
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End date: |
09/13/2024 |
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Start price/share: |
$23.94 |
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End price/share: |
$2.31 |
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Dividends collected/share: |
$0.00 |
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Total return: |
-90.35% |
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Average Annual Total Return: |
-20.86% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$964.36 |
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Years: |
10.00 |
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Date |
Ratio |
05/11/2004 | 10 for 1 |
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