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 Video: What is a Stock Split?
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| ResMed is a holding company. Through its subsidiaries, Co. is engaged in the development, manufacturing, distribution and marketing of medical devices and cloud-based software applications that diagnose, treat and manage respiratory disorders, including sleep-disordered breathing, chronic obstructive pulmonary disease, neuromuscular disease and other chronic diseases. Co.'s operating segments are: Sleep and Respiratory Care, which relates primarily to the sale of its products that are therapy-based equipment; and Software as a Service, which relates to the provision of software access with ongoing support and maintenance services as well as services such as training and consulting. According to our RMD split history records, ResMed has had 4 splits. | |
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ResMed (RMD) has 4 splits in our RMD split history database. The first split for RMD took place on November 17, 1998. This was a 2 for 1
split, meaning for each share of RMD 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. RMD's second split took place on April 03, 2000. This was a 2 for 1
split, meaning for each share of RMD 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. RMD's third split took place on October 03, 2005. This was a 2 for 1 split, meaning for each share of RMD owned pre-split, the shareholder now owned 2 shares. For example, a 4000 share position pre-split, became a 8000 share position following the split. RMD's 4th split took place on August 31, 2010. This was a 2 for 1 split, meaning for each share of RMD owned pre-split, the shareholder now owned 2 shares. For example, a 8000 share position pre-split, became a 16000 share position following the split.
When a company such as ResMed 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 RMD split history from start to finish, an original position size of 1000 shares would have turned into 16000 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into ResMed shares, starting with a $10,000 purchase of RMD, presented on a split-history-adjusted basis factoring in the complete RMD split history.
Growth of $10,000.00
With Dividends Reinvested
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| Start date: |
10/07/2014 |
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| End date: |
10/03/2024 |
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| Start price/share: |
$50.71 |
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| End price/share: |
$238.43 |
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| Starting shares: |
197.20 |
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| Ending shares: |
225.14 |
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| Dividends reinvested/share: |
$15.25 |
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| Total return: |
436.81% |
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| Average Annual Total Return: |
18.30% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$53,659.61 |
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| Years: |
10.00 |
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Growth of $10,000.00
Without Dividends Reinvested
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| Start date: |
10/07/2014 |
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| End date: |
10/03/2024 |
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| Start price/share: |
$50.71 |
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| End price/share: |
$238.43 |
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| Dividends collected/share: |
$15.25 |
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| Total return: |
400.26% |
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| Average Annual Total Return: |
17.47% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$50,012.45 |
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| Years: |
10.00 |
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| Date |
Ratio |
| 11/17/1998 | 2 for 1
| | 04/03/2000 | 2 for 1
| | 10/03/2005 | 2 for 1 | | 08/31/2010 | 2 for 1 |
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