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Video: What is a Stock Split?
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Gravitas Education Holdings is a holding company. Through its subsidiaries, Co. provides kindergarten services and play-and-learn center services, as well as at-home education products and services. Co. directly operates and franchises play-and-learn centers, kindergartens and student care centers. Co.'s kindergartens serve two to six-year-old children. Each kindergarten normally houses classrooms, playgrounds and multi-function rooms that can serve as music classrooms, conference rooms and indoor activity areas. Courses provided include play and explore, talent talk shows, The Music Class, intelligence cultivation, as well as transition to kindergartens and primary schools. According to our GEHI split history records, GEHI has had 2 splits. | |
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GEHI (GEHI) has 2 splits in our GEHI split history database. The first split for GEHI took place on October 14, 2022. This was a 1 for 20 reverse split, meaning for each 20 shares of GEHI owned pre-split, the shareholder now owned 1 share. For example, a 1000 share position pre-split, became a 50 share position following the split. GEHI's second split took place on November 01, 2023. This was a 2 for 1 split, meaning for each share of GEHI owned pre-split, the shareholder now owned 2 shares. For example, a 50 share position pre-split, became a 100 share position following the split.
When a company such as GEHI 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 GEHI 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 GEHI split history from start to finish, an original position size of 1000 shares would have turned into 100 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into GEHI shares, starting with a $10,000 purchase of GEHI, presented on a split-history-adjusted basis factoring in the complete GEHI split history.
Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
09/28/2017 |
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End date: |
12/12/2023 |
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Start price/share: |
$249.50 |
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End price/share: |
$13.23 |
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Dividends collected/share: |
$0.00 |
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Total return: |
-94.70% |
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Average Annual Total Return: |
-37.69% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$530.36 |
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Years: |
6.21 |
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Date |
Ratio |
10/14/2022 | 1 for 20 | 11/01/2023 | 2 for 1 |
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