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Video: What is a Stock Split?
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Lannett primarily develops, manufactures, markets and distributes generic versions of brand pharmaceutical products. Co.'s primary products include: Amphetamine IR Tablets, which are used to treat Attention Deficit Hyperactivity Disorder (ADHD) and narcolepsy; Amphetamine ER Capsules, which are indicated for use to treat ADHD; Dicyclomine Tablets, which are indication for the treatment of functional bowel disorder and irritable bowel syndrome; Fluphenazine Tablets, which are used for the management of manifestations of psychotic disorders; and Levothyroxine Capsules, which are soft gel capsules used to treat patients with hypothyroidism and other conditions. According to our LCI split history records, LCI has had 2 splits. | |
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LCI (LCI) has 2 splits in our LCI split history database. The first split for LCI took place on March 03, 2003. This was a 3 for 2 split, meaning for each 2 shares of LCI 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. LCI's second split took place on February 07, 2023. This was a 1 for 4 reverse split, meaning for each 4 shares of LCI owned pre-split, the shareholder now owned 1 share. For example, a 1500 share position pre-split, became a 375 share position following the split.
When a company such as LCI 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 LCI 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 LCI split history from start to finish, an original position size of 1000 shares would have turned into 375 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into LCI shares, starting with a $10,000 purchase of LCI, presented on a split-history-adjusted basis factoring in the complete LCI split history.
Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
04/01/2014 |
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End date: |
04/19/2023 |
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Start price/share: |
$147.76 |
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End price/share: |
$0.69 |
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Dividends collected/share: |
$0.00 |
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Total return: |
-99.54% |
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Average Annual Total Return: |
-44.75% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$46.44 |
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Years: |
9.05 |
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Date |
Ratio |
03/03/2003 | 3 for 2 | 02/07/2023 | 1 for 4 |
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