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Video: What is a Stock Split?
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Western Asset Mortgage Capital is a real estate investment company. Co. focuses on investing in, financing and managing a portfolio of real estate related securities, whole loans and other financial assets, which Co. collectively refers to as its target assets. Co. is externally managed by Western Asset Management Company, LLC. Co.'s target assets include: residential whole loans, which are mortgages secured by single family residences held directly by Co. or through consolidated trusts with Co. holding the beneficial interest in the trusts; and non-agency residential mortgage-backed securities, which are not guaranteed by a U.S. Government agency or U.S. Government-sponsored entity. According to our WMC split history records, Western Asset Mortgage has had 1 split. | |
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Western Asset Mortgage (WMC) has 1 split in our WMC split history database. The split for WMC took place on July 11, 2022. This was a 1 for 10 reverse split, meaning for each 10 shares of WMC owned pre-split, the shareholder now owned 1 share. For example, a 1000 share position pre-split, became a 100 share position following the split.
When a company such as Western Asset Mortgage 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 WMC split history from start to finish, an original position size of 1000 shares would have turned into 100 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Western Asset Mortgage shares, starting with a $10,000 purchase of WMC, presented on a split-history-adjusted basis factoring in the complete WMC split history.
Growth of $10,000.00
With Dividends Reinvested
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Start date: |
04/01/2014 |
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End date: |
12/05/2023 |
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Start price/share: |
$156.10 |
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End price/share: |
$9.18 |
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Starting shares: |
64.06 |
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Ending shares: |
220.80 |
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Dividends reinvested/share: |
$102.99 |
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Total return: |
-79.73% |
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Average Annual Total Return: |
-15.19% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$2,027.75 |
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Years: |
9.68 |
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Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
04/01/2014 |
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End date: |
12/05/2023 |
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Start price/share: |
$156.10 |
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End price/share: |
$9.18 |
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Dividends collected/share: |
$102.99 |
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Total return: |
-28.14% |
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Average Annual Total Return: |
-3.35% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$7,189.21 |
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Years: |
9.68 |
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Date |
Ratio |
07/11/2022 | 1 for 10 |
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