|
Video: What is a Stock Split?
|
|
Rithm Capital is a holding company. Through its subsidiaries, Co. is an investment manager with a vertically integrated mortgage platform. Co.'s portfolio is composed of mortgage servicing rights (MSR), mortgage origination and servicing companies (including ancillary mortgage services businesses), residential mortgage-backed securities, properties and loans, consumer loans, and other investments. Co. is externally managed and advised by an affiliate of Fortress Investment Group LLC. Co. conducts its business in six segments: Origination, Servicing, MSR Related Investments, Residential Securities, Properties and Loans, Consumer Loans, and Mortgage Loans. According to our RITM split history records, Rithm Capital has had 1 split. | |
|
Rithm Capital (RITM) has 1 split in our RITM split history database. The split for RITM took place on October 20, 2014. This was a 1 for 2 reverse split, meaning for each 2 shares of RITM owned pre-split, the shareholder now owned 1 share. For example, a 1000 share position pre-split, became a 500 share position following the split.
When a company such as Rithm 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 RITM split history from start to finish, an original position size of 1000 shares would have turned into 500 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Rithm Capital shares, starting with a $10,000 purchase of RITM, presented on a split-history-adjusted basis factoring in the complete RITM split history.
Growth of $10,000.00
With Dividends Reinvested
|
Start date: |
04/28/2014 |
|
End date: |
04/24/2024 |
|
Start price/share: |
$12.22 |
|
End price/share: |
$11.13 |
|
Starting shares: |
818.33 |
|
Ending shares: |
2,470.21 |
|
Dividends reinvested/share: |
$14.45 |
|
Total return: |
174.93% |
|
Average Annual Total Return: |
10.65% |
|
Starting investment: |
$10,000.00 |
|
Ending investment: |
$27,503.87 |
|
Years: |
10.00 |
|
|
Growth of $10,000.00
Without Dividends Reinvested
|
Start date: |
04/28/2014 |
|
End date: |
04/24/2024 |
|
Start price/share: |
$12.22 |
|
End price/share: |
$11.13 |
|
Dividends collected/share: |
$14.45 |
|
Total return: |
109.33% |
|
Average Annual Total Return: |
7.67% |
|
Starting investment: |
$10,000.00 |
|
Ending investment: |
$20,934.34 |
|
Years: |
10.00 |
|
|
|
Date |
Ratio |
10/20/2014 | 1 for 2 |
|
|