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Video: What is a Stock Split?
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Universe Pharmaceuticals is a holding company. Through its subsidiaries, Co. is engaged in the development, manufacture and sale of traditional Chinese medicine derivative (TCDM) products targeted to the elderly to address their physical conditions in the aging process and to promote their general well-being. In addition, Co. also sells biochemical drugs, medical instruments, Traditional Chinese Medicine Pieces products and dietary supplements manufactured by third-party pharmaceutical companies. TCMD products has two categories: treatment and relief for common chronic health conditions in the elderly designed to achieve physical wellness and longevity; and cold and flu medications. According to our Universe Pharmaceuticals stock split history records, Universe Pharmaceuticals has had 2 splits. | |
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Universe Pharmaceuticals (UPC) has 2 splits in our Universe Pharmaceuticals stock split history database. The first split for UPC took place on June 07, 2002. This was a 3 for 2 split, meaning for each 2 shares of UPC owned pre-split, the shareholder now owned 3 shares. For example, a 1000 share position pre-split, became a 1500 share position following the split. UPC's second split took place on July 28, 2023. This was a 1 for 6 reverse split, meaning for each 6 shares of UPC owned pre-split, the shareholder now owned 1 share. For example, a 1500 share position pre-split, became a 250 share position following the split.
When a company such as Universe Pharmaceuticals 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 Universe Pharmaceuticals 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 Universe Pharmaceuticals stock split history from start to finish, an original position size of 1000 shares would have turned into 250 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Universe Pharmaceuticals shares, starting with a $10,000 purchase of UPC, presented on a split-history-adjusted basis factoring in the complete Universe Pharmaceuticals stock split history.
Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
03/24/2021 |
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End date: |
05/03/2024 |
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Start price/share: |
$25.02 |
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End price/share: |
$2.15 |
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Dividends collected/share: |
$0.00 |
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Total return: |
-91.41% |
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Average Annual Total Return: |
-54.55% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$859.28 |
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Years: |
3.11 |
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Date |
Ratio |
06/07/2002 | 3 for 2 | 07/28/2023 | 1 for 6 |
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