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Video: What is a Stock Split?
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Root is a holding company. Through its subsidiaries, Co. is a technology company revolutionizing personal insurance with a pricing model based upon fairness and a modern customer experience. Co.'s modern, mobile-first customer experience is designed to make insurance simple. According to our ROOT split history records, Root has had 1 split. | |
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Root (ROOT) has 1 split in our ROOT split history database. The split for ROOT took place on August 15, 2022. This was a 1 for 18 reverse split, meaning for each 18 shares of ROOT owned pre-split, the shareholder now owned 1 share. For example, a 1000 share position pre-split, became a 55.5555555555556 share position following the split.
When a company such as Root 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 ROOT split history from start to finish, an original position size of 1000 shares would have turned into 55.5555555555556 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Root shares, starting with a $10,000 purchase of ROOT, presented on a split-history-adjusted basis factoring in the complete ROOT split history.
Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
10/29/2020 |
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End date: |
03/28/2024 |
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Start price/share: |
$464.40 |
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End price/share: |
$61.08 |
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Dividends collected/share: |
$0.00 |
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Total return: |
-86.85% |
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Average Annual Total Return: |
-44.80% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$1,315.40 |
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Years: |
3.41 |
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Date |
Ratio |
08/15/2022 | 1 for 18 |
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