When a company such as DHT Holdings 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 DHT 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 DHT Holdings shares, starting with a $10,000 purchase of DHT, presented on a split-history-adjusted basis factoring in the complete DHT split history.

About DHT Holdings

DHT Holdings is a holding company. Through its subsidiaries, Co. operates a fleet of crude oil tankers. Co.'s fleet consists of very large crude carrier crude oil tankers, all of which are wholly owned by Co. Some of Co.'s vessels are on time charters and some vessels are operating in the spot market. Co. operates its vessels through its wholly owned management companies in Monaco, Norway and Singapore. According to our DHT split history records, DHT Holdings has had 1 split.

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