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 Video: What is a Stock Split?
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| North Atlantic Drilling is an offshore drilling contractor focused on operations in the North Atlantic Region which includes only the territorial waters and outer continental shelf jurisdiction of Norway, the United Kingdom, Ireland, Denmark, the Netherlands, the east coast of Greenland, Russia and all countries within the Baltic Sea and the Gulf of Bothnia. Co. operates exclusively offshore Norway and the United Kingdom and focused on state-of-the-art offshore drilling units primarily in harsh environments and the North Atlantic Region. Co.'s drilling rigs are under contracts with major oil companies such as Statoil ASA, Conoco Phillips Company and Total S.A. According to our NADL split history records, NADL has had 2 splits. | |
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NADL (NADL) has 2 splits in our NADL split history database. The first split for NADL took place on November 21, 2012. This was a 1 for 5 reverse split, meaning for each 5 shares of NADL owned pre-split, the shareholder now owned 1 share. For example, a 1000 share position pre-split, became a 200 share position following the split. NADL's second split took place on December 31, 2015. This was a 1 for 10 reverse split, meaning for each 10 shares of NADL owned pre-split, the shareholder now owned 1 share. For example, a 200 share position pre-split, became a 20 share position following the split.
When a company such as NADL 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 NADL split history from start to finish, an original position size of 1000 shares would have turned into 20 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into NADL shares, starting with a $10,000 purchase of NADL, presented on a split-history-adjusted basis factoring in the complete NADL split history.
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| Date |
Ratio |
| 11/21/2012 | 1 for 5 | | 12/31/2015 | 1 for 10 |
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