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Video: What is a Stock Split?
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Sutor Technology Group is a manufacturer and services provider of finished steel products. Co.'s four operating segments are categorized according to its four operating subsidiaries: Changshu Huaye Steel Strip Co., Ltd., which manufactures and sells hot-dip galvanizing (HDG) steel and pre-painted galvanized steel products; Jiangsu Cold-Rolled Technology Co., Ltd., which manufactures and sells HDG steel, acid pickled steel and cold-rolled steel; Ningbo Zhehua Heavy Steel Pipe Manufacturing Co., Ltd., which manufactures and sells welded steel pipe products; and Sutor Technology Co., Ltd., which primarily sells products to Co.'s other subsidiaries. Most of Co.'s customers are located in China. According to our TOR split history records, TOR has had 1 split. | |
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TOR (TOR) has 1 split in our TOR split history database. The split for TOR took place on June 26, 2015. This was a 1 for 5 reverse split, meaning for each 5 shares of TOR owned pre-split, the shareholder now owned 1 share. For example, a 1000 share position pre-split, became a 200 share position following the split.
When a company such as TOR 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 TOR split history from start to finish, an original position size of 1000 shares would have turned into 200 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into TOR shares, starting with a $10,000 purchase of TOR, presented on a split-history-adjusted basis factoring in the complete TOR split history.
Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
04/22/2014 |
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End date: |
03/04/2016 |
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Start price/share: |
$9.15 |
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End price/share: |
$0.30 |
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Dividends collected/share: |
$0.00 |
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Total return: |
-96.72% |
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Average Annual Total Return: |
-83.94% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$328.05 |
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Years: |
1.87 |
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Date |
Ratio |
06/26/2015 | 1 for 5 |
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