Published: January 30, 2024 at 6:08 PM ET
Walmart stock rose 1% in extended trading Tuesday after the retail giant announced a 3-for-1 stock split.
The decision is part of Walmart’s WMT’s “continuous review of optimal trading and spread levels, and our desire to ensure that our employees feel that stock purchases are easily within their reach,” the company said. said.
As of late Tuesday, Walmart…
Walmart stock rose 1% in extended trading Tuesday after the retail giant announced a 3-for-1 stock split.
This decision is on the part of Walmart.
WMT
The company said it is “continually reviewing optimal trading and spread levels and wants our employees to feel that purchasing stock is easily within their reach.”
As of late Tuesday, Walmart’s stock was the 175th largest by value and the 17th largest among the DJIA components of the Dow Jones Industrial Average. Based on the new split-adjusted price, it would rank 25th on the Dow Jones Industrial Average.
More than 400,000 employees currently participate in the company’s stock purchase plan, which allows eligible employees to purchase stock through payroll deductions and, in some cases, a company match.
“Given our growth and future plans, we decided it was a good time to split our stock and encourage our employees to participate over the next few years,” CEO Doug McMillon said in a statement. Ta.
Walmart has increased its perks for some employees in recent weeks, recently allowing U.S. store managers to receive up to $20,000 in Walmart stock grants each year.
The shares issued in the stock split are expected to be paid out to shareholders of record at the close of trading on February 22nd, after the market closes on Friday, February 23rd.
Stockholders will receive two additional shares of common stock for each share they own, and Walmart stock will begin trading on a post-split basis when the market opens on February 26th.
The company expects that the stock split will increase the number of Walmart’s outstanding shares from approximately 2.7 billion to approximately 8.1 billion.
Walmart stock has risen 16% over the past 12 months, while the Dow Jones Industrial Average has risen about 14% over the same period.
