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Video: What is a Stock Split?
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MediaAlpha, Inc. is an online customer acquisition channel in property and casualty (P&C) insurance, health insurance and life insurance. Its technology platform brings insurance carriers and high-intent consumers together through a real-time, programmatic, transparent, and results-driven ecosystem. Its platform is a set of predictive analytics algorithms that incorporate various variables to generate conversion probabilities for each consumer. Co.'s platform allows buyers to fully integrate first-party consumer data to enhance targeting parameters, bidding granularity and conversion tracking. According to our MAX split history records, MediaAlpha has had 2 splits. | |
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MediaAlpha (MAX) has 2 splits in our MAX split history database. The first split for MAX took place on April 14, 1997. This was a 5 for 4
split, meaning for each 4
shares of MAX owned pre-split, the shareholder now owned 5 shares. For example, a 1000 share position pre-split, became a 1250 share position following the split. MAX's second split took place on June 18, 2003. This was a 1 for 2 reverse split, meaning for each 2 shares of MAX owned pre-split, the shareholder now owned 1 share. For example, a 1250 share position pre-split, became a 625 share position following the split.
When a company such as MediaAlpha 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 MediaAlpha 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 MAX split history from start to finish, an original position size of 1000 shares would have turned into 625 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into MediaAlpha shares, starting with a $10,000 purchase of MAX, presented on a split-history-adjusted basis factoring in the complete MAX split history.
Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
10/29/2020 |
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End date: |
12/09/2024 |
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Start price/share: |
$32.85 |
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End price/share: |
$11.80 |
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Dividends collected/share: |
$0.00 |
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Total return: |
-64.08% |
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Average Annual Total Return: |
-22.03% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$3,591.49 |
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Years: |
4.12 |
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Date |
Ratio |
04/14/1997 | 5 for 4
| 06/18/2003 | 1 for 2 |
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