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 Video: What is a Stock Split?
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| La Quinta Holdings is a holding company. Through its subsidiaries, Co. is engaged as an owner, operator and franchisor of select-service hotels under the La Quinta brand. Co. operates its business in two segments: owned hotels, which operates owned hotel properties located in the U.S; and franchise and management, which is engaged in licensing, franchising and managing agreements relating to its owned and franchised hotels. As of Dec 31 2016, Co.'s portfolio consisted of 888 hotels representing approximately 87,200 rooms located primarily in 48 states across the U.S, as well as in Canada, Mexico, Honduras and Colombia, of which 322 hotels were owned and operated and 566 were franchised. According to our LQ split history records, LQ has had 1 split. | |
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LQ (LQ) has 1 split in our LQ split history database. The split for LQ took place on May 31, 2018. This was a 1 for 2 reverse split, meaning for each 2 shares of LQ owned pre-split, the shareholder now owned 1 share. For example, a 1000 share position pre-split, became a 500 share position following the split.
When a company such as LQ 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 LQ split history from start to finish, an original position size of 1000 shares would have turned into 500 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into LQ shares, starting with a $10,000 purchase of LQ, presented on a split-history-adjusted basis factoring in the complete LQ split history.
Growth of $10,000.00
Without Dividends Reinvested
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| Start date: |
05/01/2015 |
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| End date: |
05/31/2018 |
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| Start price/share: |
$48.72 |
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| End price/share: |
$43.24 |
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| Dividends collected/share: |
$0.00 |
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| Total return: |
-11.25% |
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| Average Annual Total Return: |
-3.79% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$8,876.37 |
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| Years: |
3.08 |
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| Date |
Ratio |
| 05/31/2018 | 1 for 2 |
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