 |
 Video: What is a Stock Split?
|
|
|
| McGrath RentCorp is a business-to-business rental company with the following rental divisions: relocatable modular buildings, portable storage containers, electronic test equipment, and liquid and solid containment tanks and boxes. Although Co.'s primary focus is on equipment rentals, sales of equipment occur in the normal course of business. Co.'s reportable business segments include: its modular building and portable storage segment; its electronic test equipment segment; its containment solutions for the storage of hazardous and non-hazardous liquids and solids segment; and its classroom manufacturing business selling modular buildings used primarily as classrooms in California. According to our MGRC split history records, McGrath RentCorp has had 3 splits. | |
|
McGrath RentCorp (MGRC) has 3 splits in our MGRC split history database. The first split for MGRC took place on April 22, 1991. This was a 2 for 1
split, meaning for each share of MGRC owned pre-split, the shareholder now owned 2 shares. For example, a 1000 share position pre-split, became a 2000 share position following the split. MGRC's second split took place on April 28, 1997. This was a 2 for 1
split, meaning for each share of MGRC owned pre-split, the shareholder now owned 2 shares. For example, a 2000 share position pre-split, became a 4000 share position following the split. MGRC's third split took place on March 28, 2005. This was a 2 for 1 split, meaning for each share of MGRC owned pre-split, the shareholder now owned 2 shares. For example, a 4000 share position pre-split, became a 8000 share position following the split.
When a company such as McGrath RentCorp 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 MGRC split history from start to finish, an original position size of 1000 shares would have turned into 8000 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into McGrath RentCorp shares, starting with a $10,000 purchase of MGRC, presented on a split-history-adjusted basis factoring in the complete MGRC split history.
Growth of $10,000.00
With Dividends Reinvested
|
| Start date: |
02/28/2011 |
|
| End date: |
02/26/2021 |
|
| Start price/share: |
$27.51 |
|
| End price/share: |
$77.66 |
|
| Starting shares: |
363.50 |
|
| Ending shares: |
488.45 |
|
| Dividends reinvested/share: |
$11.40 |
|
| Total return: |
279.33% |
|
| Average Annual Total Return: |
14.26% |
|
| Starting investment: |
$10,000.00 |
|
| Ending investment: |
$37,940.30 |
|
| Years: |
10.00 |
|
| |
Growth of $10,000.00
Without Dividends Reinvested
|
| Start date: |
02/28/2011 |
|
| End date: |
02/26/2021 |
|
| Start price/share: |
$27.51 |
|
| End price/share: |
$77.66 |
|
| Dividends collected/share: |
$11.40 |
|
| Total return: |
223.74% |
|
| Average Annual Total Return: |
12.46% |
|
| Starting investment: |
$10,000.00 |
|
| Ending investment: |
$32,368.35 |
|
| Years: |
10.00 |
|
|
|
| Date |
Ratio |
| 04/22/1991 | 2 for 1
| | 04/28/1997 | 2 for 1
| | 03/28/2005 | 2 for 1 |
|
|
