Strategic Education is an education services holding company. Co. provides a range of post-secondary education and other academic programs through two subsidiaries, Strayer University (the University) and the New York Code and Design Academy (NYCDA). The University provides undergraduate and graduate degree programs in business administration, accounting, information technology, education, health services administration, nursing, public administration, and criminal justice at physical campuses, primarily located in the eastern U.S., and online. NYCDA provides non-degree courses in web and application software development, primarily at its campuses in New York City and in Philadelphia, PA. According to our STRA split history records, Strategic Education has had 1 split.
Strategic Education (STRA) has 1 split in our STRA split history database. The split for STRA took place on November 19, 1997. This was a 3 for 2 split, meaning for each 2 shares of STRA 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.
When a company such as Strategic Education 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 STRA split history from start to finish, an original position size of 1000 shares would have turned into 1500 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Strategic Education shares, starting with a $10,000 purchase of STRA, presented on a split-history-adjusted basis factoring in the complete STRA split history.