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 Video: What is a Stock Split?
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| Swift Transportation is a transportation services company. Co. has four segments: Truckload, which consists of one-way movements over irregular routes throughout the U.S., Mexico and Canada; Dedicated, which uses its equipment to specific customers and provides tailored solutions under contracts; Swift Refrigerated, which consists of shipments for customers that require temperature-controlled trailers; and Intermodal, which moves freight over the rail in its containers or other trailing equipment. As of Dec 31 2016, Co.'s fleet was comprised of 13,937 company tractors and 4,429 owner-operator tractors, as well as 64,066 trailers and 9,131 intermodal containers. According to our SWFT split history records, SWFT has had 5 splits. | |
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SWFT (SWFT) has 5 splits in our SWFT split history database. The first split for SWFT took place on November 19, 1993. This was a 3 for 2
split, meaning for each 2
shares of SWFT owned pre-split, the shareholder now owned 3 shares. For example, a 1000 share position pre-split, became a 1500 share position following the split. SWFT's second split took place on November 21, 1994. This was a 2 for 1
split, meaning for each share of SWFT owned pre-split, the shareholder now owned 2 shares. For example, a 1500 share position pre-split, became a 3000 share position following the split. SWFT's third split took place on March 13, 1998. This was a 3 for 2
split, meaning for each 2
shares of SWFT owned pre-split, the shareholder now owned 3 shares. For example, a 3000 share position pre-split, became a 4500 share position following the split. SWFT's 4th split took place on April 12, 1999. This was a 3 for 2
split, meaning for each 2
shares of SWFT owned pre-split, the shareholder now owned 3 shares. For example, a 4500 share position pre-split, became a 6750 share position following the split. SWFT's 5th split took place on September 11, 2017. This was a 719 for 1000 reverse split, meaning for each 1000 shares of SWFT owned pre-split, the shareholder now owned 719 shares. For example, a 6750 share position pre-split, became a 4853.25 share position following the split.
When a company such as SWFT 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 SWFT 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 SWFT split history from start to finish, an original position size of 1000 shares would have turned into 4853.25 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into SWFT shares, starting with a $10,000 purchase of SWFT, presented on a split-history-adjusted basis factoring in the complete SWFT split history.
No data found |
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| Date |
Ratio |
| 11/19/1993 | 3 for 2
| | 11/21/1994 | 2 for 1
| | 03/13/1998 | 3 for 2
| | 04/12/1999 | 3 for 2
| | 09/11/2017 | 719 for 1000 |
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