When a company such as CPI Card Group 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 PMTS split history from start to finish, an original position size of 1000 shares would have turned into 200 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into CPI Card Group shares, starting with a $10,000 purchase of PMTS, presented on a split-history-adjusted basis factoring in the complete PMTS split history.

About CPI Card Group

CPI Card Group is a payment technology company and provides Financial Payment Card solutions. Co.'s business consists of the following reportable segments: Debit and Credit and Prepaid Debit. Co.'s Debit and Credit segment primarily produces Financial Payment Cards and provides integrated card services to card-issuing banks primarily in the U.S. Products manufactured by this segment primarily include Europay, Mastercard and Visa (EMV) and non-EMV Financial Payment Cards. Co.'s Prepaid Debit segment primarily provides integrated prepaid card services to Prepaid Debit Card providers in the U.S., including tamper-evident security packaging. This segment also produces Financial Payment Cards. According to our PMTS split history records, CPI Card Group has had 1 split.

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