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 Video: What is a Stock Split?
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| Severn Bancorp is a savings and loan holding company. Through its subsidiary, Severn Savings Bank, FSB (the Bank), Co. provides various personal and commercial banking services. Personal services include mortgage lending and various other lending services as well as checking, savings, money market, time deposit, and individual retirement accounts, in addition to Internet and mobile banking. Commercial services include commercial secured and unsecured lending services as well as business Internet banking, corporate cash management services, and deposit services to commercial customers. The Bank also provides safe deposit boxes, ATMs, debit cards, credit cards, and personal Internet banking. According to our SVBI split history records, SVBI has had 3 splits. | |
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SVBI (SVBI) has 3 splits in our SVBI split history database. The first split for SVBI took place on December 31, 2004. This was a 2 for 1 split, meaning for each share of SVBI 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. SVBI's second split took place on March 24, 2006. This was a 11 for 10 split, meaning for each 10 shares of SVBI owned pre-split, the shareholder now owned 11 shares. For example, a 2000 share position pre-split, became a 2200 share position following the split. SVBI's third split took place on March 13, 2007. This was a 11 for 10 split, meaning for each 10 shares of SVBI owned pre-split, the shareholder now owned 11 shares. For example, a 2200 share position pre-split, became a 2420 share position following the split.
When a company such as SVBI 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 SVBI split history from start to finish, an original position size of 1000 shares would have turned into 2420 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into SVBI shares, starting with a $10,000 purchase of SVBI, presented on a split-history-adjusted basis factoring in the complete SVBI split history.
Growth of $10,000.00
With Dividends Reinvested
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| Start date: |
05/01/2015 |
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| End date: |
10/29/2021 |
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| Start price/share: |
$4.87 |
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| End price/share: |
$13.63 |
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| Starting shares: |
2,053.39 |
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| Ending shares: |
2,196.57 |
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| Dividends reinvested/share: |
$0.57 |
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| Total return: |
199.39% |
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| Average Annual Total Return: |
18.37% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$29,934.43 |
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| Years: |
6.50 |
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Growth of $10,000.00
Without Dividends Reinvested
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| Start date: |
05/01/2015 |
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| End date: |
10/29/2021 |
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| Start price/share: |
$4.87 |
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| End price/share: |
$13.63 |
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| Dividends collected/share: |
$0.57 |
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| Total return: |
191.58% |
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| Average Annual Total Return: |
17.89% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$29,154.00 |
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| Years: |
6.50 |
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| Date |
Ratio |
| 12/31/2004 | 2 for 1 | | 03/24/2006 | 11 for 10 | | 03/13/2007 | 11 for 10 |
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