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Video: What is a Stock Split?
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Sitio Royalties is a holding company. Through its subsidiaries, Co. owns and acquires royalty interests, mineral interests, non-participating royalty interest and overriding royalty interests (collectively, Royalties), in oil and natural gas properties in North America, substantially all of which are located in the Eagle Ford Shale. Co.'s assets consist of Royalties that are concentrated in the liquids-rich condensate region of the Eagle Ford Shale in Karnes, DeWitt, and Gonzales Counties, TX. In all three of these counties, Co. also has substantial exposure to the Austin Chalk and Upper Eagle Ford formations. According to our STR split history records, Sitio Royalties has had 5 splits. | |
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Sitio Royalties (STR) has 5 splits in our STR split history database. The first split for STR took place on June 18, 1991. This was a 2 for 1
split, meaning for each share of STR 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. STR's second split took place on June 16, 1998. This was a 2 for 1
split, meaning for each share of STR 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. STR's third split took place on June 19, 2007. This was a 2 for 1 split, meaning for each share of STR 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. STR's 4th split took place on July 01, 2010. This was a 1000 for 322 split, meaning for each 322 shares of STR owned pre-split, the shareholder now owned 1000 shares. For example, a 8000 share position pre-split, became a 24844.7204968944 share position following the split. STR's 5th split took place on June 06, 2022. This was a 1 for 4 reverse split, meaning for each 4 shares of STR owned pre-split, the shareholder now owned 1 share. For example, a 24844.7204968944 share position pre-split, became a 6211.1801242236 share position following the split.
When a company such as Sitio Royalties 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. When a company such as Sitio Royalties 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 STR split history from start to finish, an original position size of 1000 shares would have turned into 6211.1801242236 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Sitio Royalties shares, starting with a $10,000 purchase of STR, presented on a split-history-adjusted basis factoring in the complete STR split history.
Growth of $10,000.00
With Dividends Reinvested
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Start date: |
10/31/2017 |
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End date: |
03/18/2024 |
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Start price/share: |
$38.32 |
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End price/share: |
$23.96 |
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Starting shares: |
260.96 |
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Ending shares: |
425.59 |
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Dividends reinvested/share: |
$11.19 |
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Total return: |
1.97% |
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Average Annual Total Return: |
0.31% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$10,199.55 |
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Years: |
6.38 |
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Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
10/31/2017 |
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End date: |
03/18/2024 |
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Start price/share: |
$38.32 |
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End price/share: |
$23.96 |
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Dividends collected/share: |
$11.19 |
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Total return: |
-8.27% |
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Average Annual Total Return: |
-1.34% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$9,174.86 |
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Years: |
6.38 |
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Date |
Ratio |
06/18/1991 | 2 for 1
| 06/16/1998 | 2 for 1
| 06/19/2007 | 2 for 1 | 07/01/2010 | 1000 for 322 | 06/06/2022 | 1 for 4 |
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