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Video: What is a Stock Split?
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Lordstown Motors is an original equipment manufacturer of electric light duty vehicles focused on the commercial fleet market. Co. is engaged in developing its primary vehicle, the Endurance, an electric full-size pickup truck. The Endurance has four electric in-wheel hub motors. Co. has a supply and licensing agreements with Elaphe Propulsion Technologies Ltd. to produce the initial batch of required hub motors. Each hub motor and inverter pair are controlled by a central supervisory powertrain controller that manages traction, slip and efficiency on an axial basis. Co. has developed its own proprietary powertrain controller software and algorithms using instantaneous torque control. According to our RIDE split history records, RIDE has had 1 split. | |
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RIDE (RIDE) has 1 split in our RIDE split history database. The split for RIDE took place on May 24, 2023. This was a 1 for 15 reverse split, meaning for each 15 shares of RIDE 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 RIDE 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 RIDE 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 RIDE shares, starting with a $10,000 purchase of RIDE, presented on a split-history-adjusted basis factoring in the complete RIDE split history.
Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
04/22/2019 |
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End date: |
07/06/2023 |
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Start price/share: |
$146.10 |
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End price/share: |
$2.20 |
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Dividends collected/share: |
$0.00 |
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Total return: |
-98.49% |
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Average Annual Total Return: |
-63.10% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$150.64 |
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Years: |
4.21 |
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Date |
Ratio |
05/24/2023 | 1 for 15 |
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