When a company such as Cumulus Media 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 CMLS split history from start to finish, an original position size of 1000 shares would have turned into 125 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Cumulus Media shares, starting with a $10,000 purchase of CMLS, presented on a split-history-adjusted basis factoring in the complete CMLS split history.

About Cumulus Media

Cumulus Media is a holding company. Through its subsidiaries, Co. is an audio-first media company delivering content to listeners with local programming through an owned-and-operated radio stations; delivers nationally-syndicated sports, news, talk, and entertainment programming; and inspires listeners through the CUMULUS Podcast Network, its network of podcasts that are thought-provoking. Co. provides advertisers with personal connections, local impact and national reach, as well as integrated digital marketing services, influencers, full-service audio solutions, industry-leading research and insights, and live event experiences. According to our CMLS split history records, Cumulus Media has had 1 split.

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