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Video: What is a Stock Split?
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NovaBay Pharmaceuticals develops and sells eyecare and skincare products. Co.'s primary product, Avenova® Antimicrobial Lid and Lash Solution removes foreign material including microorganisms and debris from the skin around the eye, including the eyelid. Other eyecare products provided under the Avenova eyecare brand include Novawipes by Avenova, Avenova Lubricant Eye Drops, Avenova Moist Heating Eye Compress, and the i-Chek. Co.'s subsidiary, DERMAdoctor, LLC provides dermatologist-developed products targeting common skin concerns, ranging from aging and blemishes to dry skin, perspiration and keratosis pilaris. According to our NBY split history records, NovaBay Pharmaceuticals has had 4 splits. | |
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NovaBay Pharmaceuticals (NBY) has 4 splits in our NBY split history database. The first split for NBY took place on September 10, 2002. This was a 4 for 3 split, meaning for each 3 shares of NBY owned pre-split, the shareholder now owned 4 shares. For example, a 1000 share position pre-split, became a 1333.33333333333 share position following the split. NBY's second split took place on December 18, 2015. NBY's third split took place on December 21, 2015. This was a 1 for 25 reverse split, meaning for each 25 shares of NBY owned pre-split, the shareholder now owned 1 share. For example, a 1333.33333333333 share position pre-split, became a 53.3333333333333 share position following the split. NBY's 4th split took place on November 16, 2022. This was a 1 for 35 reverse split, meaning for each 35 shares of NBY owned pre-split, the shareholder now owned 1 share. For example, a 53.3333333333333 share position pre-split, became a 1.52380952380952 share position following the split.
When a company such as NovaBay Pharmaceuticals 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 NovaBay Pharmaceuticals 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 NBY split history from start to finish, an original position size of 1000 shares would have turned into 1.52380952380952 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into NovaBay Pharmaceuticals shares, starting with a $10,000 purchase of NBY, presented on a split-history-adjusted basis factoring in the complete NBY split history.
Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
04/24/2014 |
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End date: |
04/22/2024 |
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Start price/share: |
$901.25 |
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End price/share: |
$0.07 |
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Dividends collected/share: |
$0.00 |
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Total return: |
-99.99% |
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Average Annual Total Return: |
-61.17% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$0.78 |
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Years: |
10.00 |
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Date |
Ratio |
09/10/2002 | 4 for 3 | 12/18/2015 | 1 for 1 | 12/21/2015 | 1 for 25 | 11/16/2022 | 1 for 35 |
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