 |
 Video: What is a Stock Split?
|
|
|
| Encore Wire is a manufacturer of electrical building wire and cable. Co. conducts its business in one segment, the manufacture of electric building wire, manufacturing a range of electrical wire and cables used to distribute power from the transmission grid to the wall outlet or switch. Co. provides an electrical building wire product line that consists primarily of NM-B cable, UF-B cable, THHN/THWN-2, XHHW-2, USE-2, RHH/RHW-2 and other types of wire products, including SEU, SER, Photovoltaic, URD, tray cable, metal-clad and armored cable. All of these products are manufactured with copper or aluminum as the current-carrying component of the conductor. According to our WIRE split history records, Encore Wire has had 3 splits. | |
|
Encore Wire (WIRE) has 3 splits in our WIRE split history database. The first split for WIRE took place on August 19, 1997. This was a 3 for 2
split, meaning for each 2
shares of WIRE 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. WIRE's second split took place on June 16, 1998. This was a 3 for 2
split, meaning for each 2
shares of WIRE owned pre-split, the shareholder now owned 3 shares. For example, a 1500 share position pre-split, became a 2250 share position following the split. WIRE's third split took place on August 17, 2004. This was a 3 for 2 split, meaning for each 2 shares of WIRE owned pre-split, the shareholder now owned 3 shares. For example, a 2250 share position pre-split, became a 3375 share position following the split.
When a company such as Encore Wire 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 WIRE split history from start to finish, an original position size of 1000 shares would have turned into 3375 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Encore Wire shares, starting with a $10,000 purchase of WIRE, presented on a split-history-adjusted basis factoring in the complete WIRE split history.
Growth of $10,000.00
With Dividends Reinvested
|
| Start date: |
04/28/2014 |
|
| End date: |
04/24/2024 |
|
| Start price/share: |
$49.88 |
|
| End price/share: |
$282.41 |
|
| Starting shares: |
200.48 |
|
| Ending shares: |
203.35 |
|
| Dividends reinvested/share: |
$0.80 |
|
| Total return: |
474.28% |
|
| Average Annual Total Return: |
19.11% |
|
| Starting investment: |
$10,000.00 |
|
| Ending investment: |
$57,447.90 |
|
| Years: |
10.00 |
|
| |
Growth of $10,000.00
Without Dividends Reinvested
|
| Start date: |
04/28/2014 |
|
| End date: |
04/24/2024 |
|
| Start price/share: |
$49.88 |
|
| End price/share: |
$282.41 |
|
| Dividends collected/share: |
$0.80 |
|
| Total return: |
467.78% |
|
| Average Annual Total Return: |
18.97% |
|
| Starting investment: |
$10,000.00 |
|
| Ending investment: |
$56,776.41 |
|
| Years: |
10.00 |
|
|
|
| Date |
Ratio |
| 08/19/1997 | 3 for 2
| | 06/16/1998 | 3 for 2
| | 08/17/2004 | 3 for 2 |
|
|
Free WIRE Email Alerts:
