Tesco - Average Price

Following the reverse split shares of Tesco, the average price has gone up.
On close of play on Friday my average price was 2331.53p and this morning it has gone up to 292.60p.

So why has the average price gone up?

A reverse split results in the price going up, but seems from the numbers you’ve given that the price has gone down? Is that what you meant?

It was a 19:15 share consolidation, so for every 19 shares you owned prior, you’ll now have 15 instead, would drive the average price up? If you had 19 shares averaging 190.00p each, you’d have 3610.00p in total (£36.10). The 15 shares are then 240.67p averaged.

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Ok so I’ve had a look and think I understand what has gone on (wasn’t aware of any of the goings on with tesco so had to read first)

As above, every 19 shares owned were replaced with 15 new shares
Previous to the reverse split, Tesco was trading just above 300p and is now just above 240p
As below, Tesco’s intention was for the value of old shares + special dividend is approximately equal to what you have now - obviously this is subject to usual market movements but they seem to have approximately achieved that

image

Are you able to share a screenshot from your 212 app so we can check what is going on with the average price vs price etc? I’m not sure if a 292 average post-split is even possible (unless you bought 7 years ago), so maybe the app hasn’t fully adjusted for the split yet

Yes, there’s usually a delay updating the charts but they get round to it eventually. If you want to see an up to date chart of your holdings, you may have to use another platform just for viewing. I’m sure it’s on their agenda to give us up to date charts once they’ve got some of the other fundamental issues sorted.

Here’s the screenshot of the trading as of last Friday.

Tesco was trading at 242.12 - so not sure where the 300p came about from. Is it to do with the special dividend added to the trading price?

It’s the reverse split @ the ratio 19:15.

Screenshots of the 5 days and 30 days - which shows different trading price/graphs.

So as per the screenshot the average price was originally 231.53p (not 2331.53p in the original post which is what confused me) - can you show a screenshot of your average price now in the app? It should’ve gone up - that is normal when a reverse split has occurred

Re my 300p statement, I got that from this yahoo finance chart - which hasn’t been historically adjusted for the split yet

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This is likely just the charts haven’t been adjusted properly yet, that huge drop on the 1m chart isn’t correct

TradingView has it adjusted properly across all timeframes if you want to have a look

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Apologies - typo error.

Screenshot attached. The average price has gone up.

Screenshot of 1 week
Tesco-1

Which looks different to the one on Trading212 (see below)

Therefore, looks like the chart on Trading212 hasn’t been updated?

Yep seems to be the case, see what it’s saying tomorrow, if not fixed then can tag some of the team.

When there are splits the charts need get adjusted, see tesla for example, there’s no big drop of a few thousand when they had their split last year, the historic prices just get adjusted to account for the split.

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I have the same problem. I held 152 shares before the reverse split and based on share price on Friday I was about £22 in profit as my average was £2.29.
This morning I’m down to 120 shares (following 19/15 consolidation) but my average price has increased to £2.89 and I’m £55 in loss!!
So a net £77 loss which completely negates the special dividend. So how is this a benefit to me as a share holder? How is this Tesco giving back £5B following the sales of some assets?
Can’t get my head round how this has worked out??

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Aren’t you due the special dividend of 50p per share? Or has that been paid already

Yes that’s still to be paid, on 26th I think. But that being the case, I’m down £77 to then get 120x £0.51 special dividend which is £61.20. I’m still losing £16 from this which was supposed to be a capital return to share holders!! :crazy_face:

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Absolutely.

No benefit to the shareholders with the special dividend payment. At the end shareholders lose out on the reverse split stock.

Something seems off with the stock split. I have included a google image after today’s open price and the chart shows the previous 5 days I’m guessing it’s going off the adjusted price. I don’t see how if I wasn’t in the red last week how I am now in the red today.

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Exactly, I don’t see how this is returning money to the share holders when we all appear to have lost money now, to become breakeven again when special dividend is paid!!

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