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Rite Aid (RAD) has 3 splits in our RAD split history database. The first split for RAD took place on July 08, 1991. This was a 2 for 1 split, meaning for each share of RAD owned pre-split, the shareholder now owned 2 shares. For example, a 1000 share position pre-split, became a 2000 share position following the split. RAD's second split took place on February 03, 1998. This was a 2 for 1 split, meaning for each share of RAD owned pre-split, the shareholder now owned 2 shares. For example, a 2000 share position pre-split, became a 4000 share position following the split. RAD's third split took place on April 22, 2019. This was a 1 for 20 reverse split, meaning for each 20 shares of RAD owned pre-split, the shareholder now owned 1 share. For example, a 4000 share position pre-split, became a 200 share position following the split.
When a company such as Rite Aid splits its shares, the market capitalization before and after the split takes place remains stable, meaning the shareholder now owns more shares but each are valued at a lower price per share. Often, however, a lower priced stock on a per-share basis can attract a wider range of buyers. If that increased demand causes the share price to appreciate, then the total market capitalization rises post-split. This does not always happen, however, often depending on the underlying fundamentals of the business. When a company such as Rite Aid 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 RAD 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 Rite Aid shares, starting with a $10,000 purchase of RAD, presented on a split-history-adjusted basis factoring in the complete RAD split history.
Growth of $10,000.00
Without Dividends Reinvested
|Average Annual Total Return:||-11.87%|
|About Rite Aid|
|Rite Aid provides an array of whole being health products and services. Co. reports its business in two segments: Retail Pharmacy Segment, which provides a range of healthcare services, including administering immunizations against coronavirus, the flu, shingles and more, as well as Health Dialog, a provider of healthcare coaching and disease management services to health plans and employers; and Pharmacy Services Segment, which includes its pharmacy benefit management (PBM), Elixir, that provides a suite of PBM offerings including technology solutions, mail delivery services, specialty pharmacy, network and rebate administration, claims adjudication and pharmacy discount programs. According to our RAD split history records, Rite Aid has had 3 splits.|
|RAD Split History Table|
|07/08/1991||2 for 1|
|02/03/1998||2 for 1|
|04/22/2019||1 for 20|
|Services Stock Splits|
|RAD is categorized under the Services sector; below are some other companies in the same sector that also have a history of stock splits:
Also explore: RAD shares outstanding history