 |
Video: What is a Stock Split?
|
 |
Groupon, Inc. is a scaled two-sided marketplace that connects consumers to merchants. Co.'s marketplace is accessible through its mobile applications and its websites, which are primarily localized groupon.com sites in 13 countries. It has two segments, North America and International, and in three categories, Local, Goods and Travel. Local category includes services from local and national merchants, and other local and national merchants, including things to do, beauty and wellness and dining, as well as other services. Goods category includes merchandise across multiple product lines, such as electronics, sporting goods, jewelry, toys, household items and apparel. According to our GRPN split history records, Groupon has had 1 split. | |
 |

Groupon (GRPN) has 1 split in our GRPN split history database. The split for GRPN took place on June 11, 2020. This was a 1 for 20 reverse split, meaning for each 20 shares of GRPN 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.
When a company such as Groupon 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 GRPN split history from start to finish, an original position size of 1000 shares would have turned into 50 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Groupon shares, starting with a $10,000 purchase of GRPN, presented on a split-history-adjusted basis factoring in the complete GRPN split history.

Growth of $10,000.00
Without Dividends Reinvested
|
Start date: |
02/12/2015 |
|
End date: |
02/10/2025 |
|
Start price/share: |
$149.20 |
|
End price/share: |
$11.76 |
|
Dividends collected/share: |
$0.00 |
|
Total return: |
-92.12% |
|
Average Annual Total Return: |
-22.43% |
|
Starting investment: |
$10,000.00 |
|
Ending investment: |
$788.20 |
|
Years: |
10.00 |
|
|
 |
Date |
Ratio |
06/11/2020 | 1 for 20 |
|
 |