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 Video: What is a Stock Split?
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| PetSmart is a provider of products, services and solutions for the needs of pets. Co.'s merchandise falls into three categories: consumables merchandise sales, which include pet food, treats and litter; hardgoods merchandise sales, which include pet supplies and other goods; and pets, which include fresh-water fish, small birds, reptiles and small pets. Co. complements its product assortment with a selection of pet services, including grooming, boarding, training, and day camp for dogs. As of Feb 2 2014, Co. operated 1,333 retail stores in the U.S., Puerto Rico and Canada. Also as of such date, Co. had full-service veterinary hospitals in 844 of its stores. According to our PETM split history records, PetSmart has had 2 splits. | |
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PetSmart (PETM) has 2 splits in our PETM split history database. The first split for PETM took place on May 02, 1995. This was a 3 for 2
split, meaning for each 2
shares of PETM owned pre-split, the shareholder now owned 3 shares. For example, a 1000 share position pre-split, became a 1500 share position following the split. PETM's second split took place on July 22, 1996. This was a 2 for 1
split, meaning for each share of PETM owned pre-split, the shareholder now owned 2 shares. For example, a 1500 share position pre-split, became a 3000 share position following the split.
When a company such as PetSmart 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 PETM split history from start to finish, an original position size of 1000 shares would have turned into 3000 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into PetSmart shares, starting with a $10,000 purchase of PETM, presented on a split-history-adjusted basis factoring in the complete PETM split history.
Growth of $10,000.00
With Dividends Reinvested
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| Start date: |
10/07/2013 |
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| End date: |
03/11/2015 |
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| Start price/share: |
$75.49 |
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| End price/share: |
$82.98 |
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| Starting shares: |
132.47 |
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| Ending shares: |
134.36 |
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| Dividends reinvested/share: |
$0.98 |
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| Total return: |
11.49% |
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| Average Annual Total Return: |
7.93% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$11,148.50 |
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| Years: |
1.42 |
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Growth of $10,000.00
Without Dividends Reinvested
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| Start date: |
10/07/2013 |
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| End date: |
03/11/2015 |
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| Start price/share: |
$75.49 |
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| End price/share: |
$82.98 |
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| Dividends collected/share: |
$0.98 |
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| Total return: |
11.21% |
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| Average Annual Total Return: |
7.75% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$11,122.02 |
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| Years: |
1.42 |
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| Date |
Ratio |
| 05/02/1995 | 3 for 2
| | 07/22/1996 | 2 for 1
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