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 Video: What is a Stock Split?
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| Eargo is a medical device company. Co. is engaged in improving the quality of life of people with hearing loss. Co.'s in-the-canal devices feature high-quality audio, are designed to provide up to 16 hours of battery life and feature Co.'s proprietary soft and flexible medical-grade silicon tips. These silicon tips are removable, allowing for simple cleaning, and can be purchased separately in several sizes to accommodate individuals with different size ear canals. Co.'s rechargeable hearing aids are designed for ease of use and maintenance while providing a comfortable fit for a majority of its target market. According to our Eargo stock split history records, Eargo has had 2 splits. | |
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Eargo (EAR) has 2 splits in our Eargo stock split history database. The first split for EAR took place on July 01, 1999. This was a 1 for 10
reverse split, meaning for each 10
shares of EAR owned pre-split, the shareholder now owned 1 share. For example, a 1000 share position pre-split, became a 100 share position following the split. EAR's second split took place on January 18, 2023. This was a 1 for 20 reverse split, meaning for each 20 shares of EAR owned pre-split, the shareholder now owned 1 share. For example, a 100 share position pre-split, became a 5 share position following the split.
When a company such as Eargo 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 Eargo stock split history from start to finish, an original position size of 1000 shares would have turned into 5 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Eargo shares, starting with a $10,000 purchase of EAR, presented on a split-history-adjusted basis factoring in the complete Eargo stock split history.
Growth of $10,000.00
Without Dividends Reinvested
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| Start date: |
10/19/2020 |
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| End date: |
02/26/2024 |
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| Start price/share: |
$701.40 |
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| End price/share: |
$70.50 |
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| Dividends collected/share: |
$0.00 |
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| Total return: |
-89.95% |
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| Average Annual Total Return: |
-49.57% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$1,005.02 |
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| Years: |
3.36 |
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| Date |
Ratio |
| 07/01/1999 | 1 for 10
| | 01/18/2023 | 1 for 20 |
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