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 Video: What is a Stock Split?
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| Cummins Inc. offers complementary business segments that design, manufacture, distribute and service a portfolio of power solutions. Its segments include Components, Engine, Distribution, Power Systems and Accelera. The Components segment sells axles, drivelines, brakes and suspension systems. The Engine segment produces engines and associated parts for sale to customers in on-highway and various off-highway markets. The Distribution segment includes distributorships engaged in wholesaling engines, generator sets, service parts, performing service and repair activities. According to our Cummins stock split history records, Cummins has had 2 splits. | |
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Cummins (CMI) has 2 splits in our Cummins stock split history database. The first split for CMI took place on April 10, 2007. This was a 2 for 1 split, meaning for each share of CMI 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. CMI's second split took place on January 03, 2008. This was a 2 for 1 split, meaning for each share of CMI 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.
When a company such as Cummins 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.
Looking at the Cummins stock split history from start to finish, an original position size of 1000 shares would have turned into 4000 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Cummins shares, starting with a $10,000 purchase of CMI, presented on a split-history-adjusted basis factoring in the complete Cummins stock split history.
Growth of $10,000.00
With Dividends Reinvested
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| Start date: |
03/25/2015 |
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| End date: |
03/21/2025 |
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| Start price/share: |
$136.76 |
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| End price/share: |
$322.10 |
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| Starting shares: |
73.12 |
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| Ending shares: |
96.64 |
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| Dividends reinvested/share: |
$52.53 |
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| Total return: |
211.29% |
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| Average Annual Total Return: |
12.03% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$31,132.08 |
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| Years: |
10.00 |
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Growth of $10,000.00
Without Dividends Reinvested
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| Start date: |
03/25/2015 |
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| End date: |
03/21/2025 |
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| Start price/share: |
$136.76 |
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| End price/share: |
$322.10 |
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| Dividends collected/share: |
$52.53 |
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| Total return: |
173.93% |
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| Average Annual Total Return: |
10.61% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$27,404.63 |
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| Years: |
10.00 |
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| Date |
Ratio |
| 04/10/2007 | 2 for 1 | | 01/03/2008 | 2 for 1 |
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