When a company such as SUMR 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 SUMR split history from start to finish, an original position size of 1000 shares would have turned into 111.111111111111 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into SUMR shares, starting with a $10,000 purchase of SUMR, presented on a split-history-adjusted basis factoring in the complete SUMR split history.

About SUMR

Summer Infant is an infant and juvenile products company. Co. is an authority in the juvenile product industry, providing parents and caregivers a range of products to care for babies and toddlers. Co. operates in one principal industry segment across geographically marketplaces, selling its products globally to national retailers as well as independent retailers, on its partner's websites, and its own direct to consumer website. Co. markets its products in several product categories including gates, potty, bath, entertainers, baby monitors, specialty blankets, strollers, car seats and travel systems. Co. markets its primary products, under its Summer™ and SwaddleMe® brand names. According to our SUMR split history records, SUMR has had 1 split.

SUMR Split History | www.SplitHistory.com | Copyright © 2013 - 2024, All Rights Reserved