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Video: What is a Stock Split?
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Mind Medicine Mindmed is a clinical stage biopharmaceutical company developing products to treat brain health disorders, with a focus on psychiatry, addiction, pain and neurology. Co.'s drug candidates include: MM-120, which is a proprietary, pharmaceutically optimized form of lysergide, and is being developed for the treatment of generalized anxiety disorder; MM-110, which is its proprietary form of 18-methoxycoronaridine, a congener of ibogaine, that is being developed for the treatment of opioid withdrawal; and MM-402, which is its proprietary form of the R-enantiomer of 3,4-methylenedioxymethamphetamine, that is developed for the treatment of main symptoms of autism spectrum disorder. According to our Mind Medicine Mindmed stock split history records, Mind Medicine Mindmed has had 3 splits. | |
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Mind Medicine Mindmed (MNMD) has 3 splits in our Mind Medicine Mindmed stock split history database. The first split for MNMD took place on April 19, 1999. This was a 2 for 1
split, meaning for each share of MNMD 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. MNMD's second split took place on August 21, 2000. This was a 2 for 1 split, meaning for each share of MNMD 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. MNMD's third split took place on August 29, 2022. This was a 1 for 15 reverse split, meaning for each 15 shares of MNMD owned pre-split, the shareholder now owned 1 share. For example, a 4000 share position pre-split, became a 266.666666666667 share position following the split.
When a company such as Mind Medicine Mindmed 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 Mind Medicine Mindmed 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 Mind Medicine Mindmed stock split history from start to finish, an original position size of 1000 shares would have turned into 266.666666666667 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Mind Medicine Mindmed shares, starting with a $10,000 purchase of MNMD, presented on a split-history-adjusted basis factoring in the complete Mind Medicine Mindmed stock split history.
Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
12/16/2020 |
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End date: |
04/26/2024 |
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Start price/share: |
$48.75 |
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End price/share: |
$8.52 |
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Dividends collected/share: |
$0.00 |
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Total return: |
-82.52% |
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Average Annual Total Return: |
-40.51% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$1,747.35 |
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Years: |
3.36 |
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Date |
Ratio |
04/19/1999 | 2 for 1
| 08/21/2000 | 2 for 1 | 08/29/2022 | 1 for 15 |
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