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Video: What is a Stock Split?
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InMode designs, develops, manufactures and markets minimally-invasive aesthetic medical products based on its proprietary radio frequency assisted lipolysis and deep subdermal fractional radio frequency technologies. These technologies are used to remodel subdermal adipose, or fatty, tissue in a variety of procedures including liposuction with simultaneous skin tightening, body and face contouring and ablative skin rejuvenation treatments. In addition to the minimally-invasive technologies, Co. designs, develops, manufactures and markets non-invasive medical aesthetic products that target an array of procedures including permanent hair reduction, wrinkle reduction and cellulite treatment. According to our InMode stock split history records, InMode has had 5 splits. | |
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InMode (INMD) has 5 splits in our InMode stock split history database. The first split for INMD took place on November 19, 1998. This was a 1 for 4
reverse split, meaning for each 4
shares of INMD owned pre-split, the shareholder now owned 1 share. For example, a 1000 share position pre-split, became a 250 share position following the split. INMD's second split took place on June 23, 2005. This was a 130 for 100 split, meaning for each 100 shares of INMD owned pre-split, the shareholder now owned 130 shares. For example, a 250 share position pre-split, became a 325 share position following the split. INMD's third split took place on June 22, 2006. This was a 5 for 4 split, meaning for each 4 shares of INMD owned pre-split, the shareholder now owned 5 shares. For example, a 325 share position pre-split, became a 406.25 share position following the split. INMD's 4th split took place on May 07, 2007. This was a 125 for 100 split, meaning for each 100 shares of INMD owned pre-split, the shareholder now owned 125 shares. For example, a 406.25 share position pre-split, became a 507.8125 share position following the split. INMD's 5th split took place on October 01, 2021. This was a 2 for 1 split, meaning for each share of INMD owned pre-split, the shareholder now owned 2 shares. For example, a 507.8125 share position pre-split, became a 1015.625 share position following the split.
When a company such as InMode 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 InMode 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 InMode stock split history from start to finish, an original position size of 1000 shares would have turned into 1015.625 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into InMode shares, starting with a $10,000 purchase of INMD, presented on a split-history-adjusted basis factoring in the complete InMode stock split history.
Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
08/09/2019 |
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End date: |
04/26/2024 |
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Start price/share: |
$7.01 |
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End price/share: |
$17.14 |
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Dividends collected/share: |
$0.00 |
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Total return: |
144.51% |
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Average Annual Total Return: |
20.87% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$24,454.74 |
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Years: |
4.72 |
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Date |
Ratio |
11/19/1998 | 1 for 4
| 06/23/2005 | 130 for 100 | 06/22/2006 | 5 for 4 | 05/07/2007 | 125 for 100 | 10/01/2021 | 2 for 1 |
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