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Video: What is a Stock Split?
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Grifols is a global pharmaceutical company developing, manufacturing and distributing a range of biological medicines based on plasma derived proteins. Co. organizes its business into several divisions, including: Bioscience, which includes activities relating to the manufacture of plasma derivatives for therapeutic use, and the sale and distribution of end products; Diagnostic, which focuses on researching, developing, manufacturing and marketing in vitro diagnostics products; Hospital, which provides technology and services for hospitals, clinics and other centers for the manufacture of medicines; and Bio Supplies, which primarily consists of biological products for non-therapeutic use. According to our GRFS split history records, Grifols SA Barcelona has had 3 splits. | |
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Grifols SA Barcelona (GRFS) has 3 splits in our GRFS split history database. The first split for GRFS took place on July 23, 2012. This was a 1 for 2 reverse split, meaning for each 2 shares of GRFS owned pre-split, the shareholder now owned 1 share. For example, a 1000 share position pre-split, became a 500 share position following the split. GRFS's second split took place on December 11, 2012. This was a 21 for 20 split, meaning for each 20 shares of GRFS owned pre-split, the shareholder now owned 21 shares. For example, a 500 share position pre-split, became a 525 share position following the split. GRFS's third split took place on January 04, 2016. This was a 2 for 1 split, meaning for each share of GRFS owned pre-split, the shareholder now owned 2 shares. For example, a 525 share position pre-split, became a 1050 share position following the split.
When a company such as Grifols SA Barcelona 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 Grifols SA Barcelona 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 GRFS split history from start to finish, an original position size of 1000 shares would have turned into 1050 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Grifols SA Barcelona shares, starting with a $10,000 purchase of GRFS, presented on a split-history-adjusted basis factoring in the complete GRFS split history.
Growth of $10,000.00
With Dividends Reinvested
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Start date: |
04/01/2014 |
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End date: |
03/28/2024 |
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Start price/share: |
$21.17 |
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End price/share: |
$6.68 |
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Starting shares: |
472.37 |
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Ending shares: |
552.93 |
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Dividends reinvested/share: |
$2.91 |
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Total return: |
-63.06% |
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Average Annual Total Return: |
-9.48% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$3,694.57 |
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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: |
04/01/2014 |
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End date: |
03/28/2024 |
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Start price/share: |
$21.17 |
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End price/share: |
$6.68 |
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Dividends collected/share: |
$2.91 |
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Total return: |
-54.71% |
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Average Annual Total Return: |
-7.62% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$4,527.66 |
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Years: |
10.00 |
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Date |
Ratio |
07/23/2012 | 1 for 2 | 12/11/2012 | 21 for 20 | 01/04/2016 | 2 for 1 |
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