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Video: What is a Stock Split?
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Local Bounti is a producer of sustainably grown living lettuce, herbs and loose leaf lettuce. Co. is a controlled environment agriculture company that utilizes patent pending Stack & Flow Technology, which is a hybrid of vertical farming and hydroponic greenhouse farming, to grow healthy food. According to our LOCL split history records, Local Bounti has had 1 split. | |
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Local Bounti (LOCL) has 1 split in our LOCL split history database. The split for LOCL took place on June 15, 2023. This was a 1 for 13 reverse split, meaning for each 13 shares of LOCL owned pre-split, the shareholder now owned 1 share. For example, a 1000 share position pre-split, became a 76.9230769230769 share position following the split.
When a company such as Local Bounti 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 LOCL split history from start to finish, an original position size of 1000 shares would have turned into 76.9230769230769 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Local Bounti shares, starting with a $10,000 purchase of LOCL, presented on a split-history-adjusted basis factoring in the complete LOCL split history.
Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
04/20/2021 |
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End date: |
04/26/2024 |
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Start price/share: |
$130.65 |
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End price/share: |
$2.95 |
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Dividends collected/share: |
$0.00 |
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Total return: |
-97.74% |
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Average Annual Total Return: |
-71.51% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$225.75 |
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Years: |
3.02 |
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Date |
Ratio |
06/15/2023 | 1 for 13 |
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