When a company such as RTI 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 RTI split history from start to finish, an original position size of 1000 shares would have turned into 100 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into RTI shares, starting with a $10,000 purchase of RTI, presented on a split-history-adjusted basis factoring in the complete RTI split history.

About RTI

RTI International Metals is a holding company. Co. is a producer and supplier of titanium mill products and a manufacturer of fabricated titanium and metal components for the international aerospace, defense, energy, medical device, and other markets. Co. has two business segments: Titanium, which melts, forges, processes, produces, stocks, distributes, finishes, and facilitates delivery services of a range of titanium mill products; and Engineered Products and Services, which is comprised of companies with hard and soft-metal capabilities that form, extrude, fabricate, machine, additively manufacture, micro-machine, and assemble titanium, aluminum, and other metal parts and components. According to our RTI split history records, RTI has had 1 split.

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