Walmart Announces 3-for-1 Stock Split

Walmart Inc. shares experienced a 1% increase in the extended session on Tuesday following the announcement of a 3-for-1 stock split by the retail giant.

Enhancing Accessibility and Engagement

As part of Walmart's ongoing evaluation of optimal trading and spread levels, and in an effort to make share purchasing more accessible to its associates, the company has decided to implement this stock split. Walmart's stock is currently the 175th-highest in price and is the 17th-largest constituent of the Dow Jones Industrial Average.

Empowering Employees through Stock Purchase Plan

With over 400,000 employees participating in Walmart's stock purchase plan, eligible workers have the opportunity to buy stock through payroll deductions, with some cases receiving company matches. To further encourage employee participation in future growth, Chief Executive Doug McMillon stated, "Given our growth and our plans for the future, we felt it was a good time to split the stock and encourage our associates to participate in the years to come."

Enriching Employee Benefits

In recent weeks, Walmart has enhanced its employee perks, now allowing U.S. store managers to receive up to $20,000 in Walmart stock grants annually.

Key Dates and Consequences

The shares issued through the stock split will be payable after market close on Friday, Feb. 23, to shareholders of record as of the end of business on Feb. 22. Each shareholder will receive two additional shares of common stock for each share held. Following the stock split, Walmart's stock will commence trading on a post-split basis at the market open on Feb. 26. Consequently, the number of outstanding Walmart shares is projected to rise to approximately 8.1 billion shares from around 2.7 billion shares.

Strong Performance

Over the past 12 months, Walmart stock has witnessed a 16% increase, outperforming the Dow's advance of about 14% during the same period.