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Video: What is a Stock Split?
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Praxis Precision Medicines is a clinical-stage biopharmaceutical company translating insights from genetic epilepsies into the development of therapies for central nervous system, or CNS, disorders characterized by neuronal excitation-inhibition imbalance. Co. is applying genetic insights to the discovery and development of therapies for neurological disorders through two proprietary platforms. Each platform has several programs: Cerebrum, which is a small molecule platform, utilizing understanding of neuronal excitability and neuronal networks; and Solidus (antisense oligonucleotide), which is medicine discovery and development engine anchored on a proprietary, computational methodology. According to our PRAX split history records, Praxis Precision Medicines has had 1 split. | |
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Praxis Precision Medicines (PRAX) has 1 split in our PRAX split history database. The split for PRAX took place on November 29, 2023. This was a 1 for 15 reverse split, meaning for each 15 shares of PRAX owned pre-split, the shareholder now owned 1 share. For example, a 1000 share position pre-split, became a 66.6666666666667 share position following the split.
When a company such as Praxis Precision Medicines 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 PRAX split history from start to finish, an original position size of 1000 shares would have turned into 66.6666666666667 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Praxis Precision Medicines shares, starting with a $10,000 purchase of PRAX, presented on a split-history-adjusted basis factoring in the complete PRAX split history.
Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
10/19/2020 |
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End date: |
04/17/2024 |
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Start price/share: |
$408.75 |
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End price/share: |
$50.78 |
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Dividends collected/share: |
$0.00 |
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Total return: |
-87.58% |
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Average Annual Total Return: |
-44.93% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$1,242.42 |
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Years: |
3.50 |
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Date |
Ratio |
11/29/2023 | 1 for 15 |
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