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Video: What is a Stock Split?
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Verastem is a late stage development biopharmaceutical company, with ongoing registration directed trials, focused on developing and commercializing medicines for patients battling cancer. Co.'s product candidates, VS-6766 and defactinib, are being investigated in both preclinical and clinical studies for the treatment of various solid tumors. VS-6766 is an orally available small molecule rapidly accelerated fibrosarcoma/ mitogen-activated protein kinase kinase clamp. Defactinib is an oral small molecule inhibitor of Focal Adhesion Kinase and proline-rich tyrosine kinase that is being evaluated as a potential combination therapy for various solid tumors. According to our VSTM split history records, Verastem has had 1 split. | |
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Verastem (VSTM) has 1 split in our VSTM split history database. The split for VSTM took place on June 01, 2023. This was a 1 for 12 reverse split, meaning for each 12 shares of VSTM owned pre-split, the shareholder now owned 1 share. For example, a 1000 share position pre-split, became a 83.3333333333333 share position following the split.
When a company such as Verastem 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 VSTM split history from start to finish, an original position size of 1000 shares would have turned into 83.3333333333333 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Verastem shares, starting with a $10,000 purchase of VSTM, presented on a split-history-adjusted basis factoring in the complete VSTM split history.
Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
04/28/2014 |
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End date: |
04/24/2024 |
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Start price/share: |
$96.48 |
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End price/share: |
$9.31 |
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Dividends collected/share: |
$0.00 |
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Total return: |
-90.35% |
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Average Annual Total Return: |
-20.86% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$964.36 |
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Years: |
10.00 |
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Date |
Ratio |
06/01/2023 | 1 for 12 |
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