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Video: What is a Stock Split?
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Precision Drilling Inc is a Canada-based drilling company. Co. is engaged in the exploration and production of oil and natural gas. Its services include North American drilling, international drilling, oilfield equipment rentals, camp & catering services. Co. technology includes AlphaAutomation, AlphaApps, AlphaAnalytics and EverGreen. According to our PDS split history records, Precision Drilling has had 4 splits. | |
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Precision Drilling (PDS) has 4 splits in our PDS split history database. The first split for PDS took place on October 15, 1997. This was a 2 for 1
split, meaning for each share of PDS 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. PDS's second split took place on June 01, 2005. This was a 2 for 1 split, meaning for each share of PDS 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. PDS's third split took place on November 12, 2020. This was a 1 for 20 reverse split, meaning for each 20 shares of PDS owned pre-split, the shareholder now owned 1 share. For example, a 4000 share position pre-split, became a 200 share position following the split. PDS's 4th split took place on December 29, 2008. This was a 983 for 1000 reverse split, meaning for each 1000 shares of PDS owned pre-split, the shareholder now owned 983 shares. For example, a 200 share position pre-split, became a 196.6 share position following the split.
When a company such as Precision Drilling 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 Precision Drilling 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 PDS split history from start to finish, an original position size of 1000 shares would have turned into 196.6 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Precision Drilling shares, starting with a $10,000 purchase of PDS, presented on a split-history-adjusted basis factoring in the complete PDS split history.

Growth of $10,000.00
With Dividends Reinvested
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Start date: |
02/17/2015 |
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End date: |
02/12/2025 |
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Start price/share: |
$126.20 |
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End price/share: |
$56.23 |
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Starting shares: |
79.24 |
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Ending shares: |
82.45 |
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Dividends reinvested/share: |
$4.42 |
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Total return: |
-53.64% |
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Average Annual Total Return: |
-7.40% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$4,637.60 |
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Years: |
9.99 |
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Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
02/17/2015 |
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End date: |
02/12/2025 |
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Start price/share: |
$126.20 |
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End price/share: |
$56.23 |
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Dividends collected/share: |
$4.42 |
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Total return: |
-51.94% |
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Average Annual Total Return: |
-7.07% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$4,805.45 |
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Years: |
9.99 |
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Date |
Ratio |
10/15/1997 | 2 for 1
| 06/01/2005 | 2 for 1 | 11/12/2020 | 1 for 20 | 12/29/2008 | 983 for 1000 |
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