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 Video: What is a Stock Split?
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| KB Home is a homebuilding company. Co.'s segments include homebuilding and financial services. The homebuilding segment is engaged in the acquisition and development of land primarily for residential purposes. Co. builds a variety of new homes, including attached and detached single-family residential homes, townhomes and condominiums, designed for first-time and first move-up, as well as second move-up and active adult, homebuyers. It offers homes in development communities, at urban in-fill locations and as part of mixed-use projects. According to our KBH split history records, KB Home has had 2 splits. | |
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KB Home (KBH) has 2 splits in our KBH split history database. The first split for KBH took place on March 07, 1989. This was a 3 for 2
split, meaning for each 2
shares of KBH owned pre-split, the shareholder now owned 3 shares. For example, a 1000 share position pre-split, became a 1500 share position following the split. KBH's second split took place on April 29, 2005. This was a 2 for 1 split, meaning for each share of KBH owned pre-split, the shareholder now owned 2 shares. For example, a 1500 share position pre-split, became a 3000 share position following the split.
When a company such as KB Home 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 KBH split history from start to finish, an original position size of 1000 shares would have turned into 3000 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into KB Home shares, starting with a $10,000 purchase of KBH, presented on a split-history-adjusted basis factoring in the complete KBH split history.
Growth of $10,000.00
With Dividends Reinvested
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| Start date: |
01/23/2015 |
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| End date: |
01/21/2025 |
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| Start price/share: |
$12.20 |
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| End price/share: |
$67.03 |
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| Starting shares: |
819.67 |
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| Ending shares: |
909.94 |
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| Dividends reinvested/share: |
$3.90 |
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| Total return: |
509.93% |
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| Average Annual Total Return: |
19.81% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$60,974.15 |
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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: |
01/23/2015 |
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| End date: |
01/21/2025 |
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| Start price/share: |
$12.20 |
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| End price/share: |
$67.03 |
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| Dividends collected/share: |
$3.90 |
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| Total return: |
481.39% |
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| Average Annual Total Return: |
19.24% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$58,133.85 |
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| Years: |
10.00 |
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| Date |
Ratio |
| 03/07/1989 | 3 for 2
| | 04/29/2005 | 2 for 1 |
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