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 Video: What is a Stock Split?
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| Hormel Foods is a food company. Co.'s segments are: Grocery Products, which consist of the processing, marketing, and sale of shelf-stable food products, along with the sale of nutritional and private label shelf-stable products; Refrigerated Foods, which include the processing, marketing, and sale of pork, beef, and poultry products for retail, foodservice, deli, convenience store, and commercial customers; Jennie-O Turkey Store, which consists of the processing, marketing, and sale of turkey products for retail, foodservice, and commercial customers; and International & Other, which manufactures, markets, and sells Co.'s products internationally. According to our HRL split history records, Hormel Foods has had 4 splits. | |
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Hormel Foods (HRL) has 4 splits in our HRL split history database. The first split for HRL took place on February 21, 1990. This was a 2 for 1
split, meaning for each share of HRL owned pre-split, the shareholder now owned 2 shares. For example, a 1000 share position pre-split, became a 2000 share position following the split. HRL's second split took place on February 16, 2000. This was a 2 for 1
split, meaning for each share of HRL owned pre-split, the shareholder now owned 2 shares. For example, a 2000 share position pre-split, became a 4000 share position following the split. HRL's third split took place on February 15, 2011. This was a 2 for 1 split, meaning for each share of HRL owned pre-split, the shareholder now owned 2 shares. For example, a 4000 share position pre-split, became a 8000 share position following the split. HRL's 4th split took place on February 10, 2016. This was a 2 for 1 split, meaning for each share of HRL owned pre-split, the shareholder now owned 2 shares. For example, a 8000 share position pre-split, became a 16000 share position following the split.
When a company such as Hormel Foods 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 HRL split history from start to finish, an original position size of 1000 shares would have turned into 16000 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Hormel Foods shares, starting with a $10,000 purchase of HRL, presented on a split-history-adjusted basis factoring in the complete HRL split history.
Growth of $10,000.00
With Dividends Reinvested
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| Start date: |
10/07/2014 |
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| End date: |
10/04/2024 |
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| Start price/share: |
$25.37 |
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| End price/share: |
$31.35 |
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| Starting shares: |
394.17 |
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| Ending shares: |
488.59 |
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| Dividends reinvested/share: |
$8.35 |
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| Total return: |
53.17% |
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| Average Annual Total Return: |
4.36% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$15,322.89 |
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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: |
10/07/2014 |
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| End date: |
10/04/2024 |
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| Start price/share: |
$25.37 |
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| End price/share: |
$31.35 |
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| Dividends collected/share: |
$8.35 |
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| Total return: |
56.50% |
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| Average Annual Total Return: |
4.58% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$15,648.99 |
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| Years: |
10.00 |
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| Date |
Ratio |
| 02/21/1990 | 2 for 1
| | 02/16/2000 | 2 for 1
| | 02/15/2011 | 2 for 1 | | 02/10/2016 | 2 for 1 |
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