When a company such as PF 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 PF split history from start to finish, an original position size of 1000 shares would have turned into 649 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into PF shares, starting with a $10,000 purchase of PF, presented on a split-history-adjusted basis factoring in the complete PF split history.

About PF

Pinnacle Foods is a holding company. Co. is a manufacturer, marketer and distributor of convenience food products. Co.'s operations are managed and reported in four operating segments: frozen, which is comprised of the retail businesses of Co.'s legacy frozen brands, including vegetables, complete bagged meals, frozen dinners and entrees, among others; grocery, which is comprised of the retail businesses of Co.'s grocery brands; boulder, which is comprised of the retail businesses of Co.'s health and wellness lifestyle brands; and specialty, which includes Co.'s snack products (Tim's Cascade and Snyder of Berlin) and all of its U.S. foodservice and private label businesses. According to our PF split history records, PF has had 1 split.

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