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Video: What is a Stock Split?
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Inspire Medical Systems is a medical technology company focused on the development and commercialization of solutions for patients with obstructive sleep apnea (OSA). Co.'s proprietary Inspire system is the neurostimulation technology that provides a treatment for moderate to severe OSA. Co. has developed a solution that monitors a patient's breathing and delivers mild hypoglossal nerve stimulation to maintain an open airway. Co. sells its Inspire system to hospitals and ambulatory surgery centers in the U.S. and in select countries in Europe through a direct sales organization, and Co. sells its Inspire system in Japan and Singapore through a distributor. According to our Inspire Medical Systems stock split history records, Inspire Medical Systems has had 4 splits. | |
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Inspire Medical Systems (INSP) has 4 splits in our Inspire Medical Systems stock split history database. The first split for INSP took place on May 05, 1999. This was a 2 for 1
split, meaning for each share of INSP 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. INSP's second split took place on January 05, 2000. This was a 2 for 1
split, meaning for each share of INSP 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. INSP's third split took place on April 07, 2000. This was a 2 for 1
split, meaning for each share of INSP owned pre-split, the shareholder now owned 2 shares. For example, a 4000 share position pre-split, became a 8000 share position following the split. INSP's 4th split took place on September 13, 2002. This was a 1 for 10 reverse split, meaning for each 10 shares of INSP owned pre-split, the shareholder now owned 1 share. For example, a 8000 share position pre-split, became a 800 share position following the split.
When a company such as Inspire Medical Systems 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 Inspire Medical Systems 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 Inspire Medical Systems stock split history from start to finish, an original position size of 1000 shares would have turned into 800 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Inspire Medical Systems shares, starting with a $10,000 purchase of INSP, presented on a split-history-adjusted basis factoring in the complete Inspire Medical Systems stock split history.
Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
05/04/2018 |
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End date: |
04/26/2024 |
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Start price/share: |
$24.47 |
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End price/share: |
$237.45 |
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Dividends collected/share: |
$0.00 |
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Total return: |
870.37% |
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Average Annual Total Return: |
46.20% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$97,044.91 |
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Years: |
5.98 |
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Date |
Ratio |
05/05/1999 | 2 for 1
| 01/05/2000 | 2 for 1
| 04/07/2000 | 2 for 1
| 09/13/2002 | 1 for 10 |
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