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Video: What is a Stock Split?
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Orchid Island Capital is a real estate investment trust. Co. invests in residential mortgage-backed securities (RMBS). The principal and interest payments of these RMBS are guaranteed by the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, or the Government National Mortgage Association and are backed primarily by single-family residential mortgage loans. Co.'s portfolio consists of two categories of Agency RMBS: pass-through Agency RMBS, such as mortgage pass through certificates and collateralized mortgage obligations; and structured Agency RMBS, such as interest only securities, inverse interest only securities and principal only securities. According to our ORC split history records, Orchid Island Capital has had 1 split. | |
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Orchid Island Capital (ORC) has 1 split in our ORC split history database. The split for ORC took place on August 31, 2022. This was a 1 for 5 reverse split, meaning for each 5 shares of ORC 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.
When a company such as Orchid Island Capital 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 ORC split history from start to finish, an original position size of 1000 shares would have turned into 200 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Orchid Island Capital shares, starting with a $10,000 purchase of ORC, presented on a split-history-adjusted basis factoring in the complete ORC split history.
Growth of $10,000.00
With Dividends Reinvested
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Start date: |
04/22/2014 |
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End date: |
04/19/2024 |
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Start price/share: |
$62.90 |
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End price/share: |
$8.26 |
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Starting shares: |
158.98 |
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Ending shares: |
861.12 |
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Dividends reinvested/share: |
$57.77 |
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Total return: |
-28.87% |
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Average Annual Total Return: |
-3.35% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$7,112.44 |
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Years: |
10.00 |
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Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
04/22/2014 |
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End date: |
04/19/2024 |
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Start price/share: |
$62.90 |
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End price/share: |
$8.26 |
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Dividends collected/share: |
$57.77 |
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Total return: |
4.98% |
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Average Annual Total Return: |
0.49% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$10,500.95 |
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Years: |
10.00 |
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Date |
Ratio |
08/31/2022 | 1 for 5 |
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