When a company such as Herc 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 HRI split history from start to finish, an original position size of 1000 shares would have turned into 333.333333333333 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Herc Holdings shares, starting with a $10,000 purchase of HRI, presented on a split-history-adjusted basis factoring in the complete HRI split history.

About Herc Holdings

Herc Holdings is an equipment rental supplier. In addition to its principal business of equipment rental, Co. sells used equipment and contractor supplies such as construction consumables, tools, small equipment and safety supplies; provides repair, maintenance, equipment management services and safety training to certain of its customers; provides equipment re-rental services and provides on-site support to its customers; and provides ancillary services such as equipment transport, rental protection, cleaning, refueling and labor. Co.'s fleet includes aerial, earthmoving, material handling, trucks and trailers, air compressors, compaction and lighting. According to our HRI split history records, Herc Holdings has had 1 split.

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