 |
 Video: What is a Stock Split?
|
|
|
| TESSCO Technologies is a technology distributor, manufacturer, and solutions provider serving commercial and retail customers in the wireless infrastructure and mobile device accessories markets. Co. supplies products from manufacturers in mobile communications, Wi-Fi, Internet of Things, and wireless backhaul. Co.'s segments are commercial and retail. The commercial segment consists of the following two markets: public carriers that are responsible for building and maintaining the infrastructure system and provide airtime service to individual subscribers; and value-added resellers and integrators. The retail segment includes retailers, independent dealer agents and carriers. According to our TESS split history records, Tessco Technologies has had 2 splits. | |
|
Tessco Technologies (TESS) has 2 splits in our TESS split history database. The first split for TESS took place on November 30, 2006. This was a 2 for 1 split, meaning for each share of TESS 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. TESS's second split took place on May 27, 2010. This was a 3 for 2 split, meaning for each 2 shares of TESS owned pre-split, the shareholder now owned 3 shares. For example, a 2000 share position pre-split, became a 3000 share position following the split.
When a company such as Tessco Technologies 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 TESS split history from start to finish, an original position size of 1000 shares would have turned into 3000 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Tessco Technologies shares, starting with a $10,000 purchase of TESS, presented on a split-history-adjusted basis factoring in the complete TESS split history.
Growth of $10,000.00
With Dividends Reinvested
|
| Start date: |
02/25/2011 |
|
| End date: |
02/24/2021 |
|
| Start price/share: |
$12.37 |
|
| End price/share: |
$7.90 |
|
| Starting shares: |
808.41 |
|
| Ending shares: |
1,217.16 |
|
| Dividends reinvested/share: |
$7.38 |
|
| Total return: |
-3.84% |
|
| Average Annual Total Return: |
-0.39% |
|
| Starting investment: |
$10,000.00 |
|
| Ending investment: |
$9,616.57 |
|
| Years: |
10.01 |
|
| |
Growth of $10,000.00
Without Dividends Reinvested
|
| Start date: |
02/25/2011 |
|
| End date: |
02/24/2021 |
|
| Start price/share: |
$12.37 |
|
| End price/share: |
$7.90 |
|
| Dividends collected/share: |
$7.38 |
|
| Total return: |
23.52% |
|
| Average Annual Total Return: |
2.13% |
|
| Starting investment: |
$10,000.00 |
|
| Ending investment: |
$12,347.63 |
|
| Years: |
10.01 |
|
|
|
| Date |
Ratio |
| 11/30/2006 | 2 for 1 | | 05/27/2010 | 3 for 2 |
|
|
