Walmart declares implementation of 1-for-3 stock division
Walmart Announces Stock Split, Here's the Lowdown 📊💸
Hey there! Walmart, the retail giant, has just announced a three-for-one stock split, according to a statement made on Tuesday. This move is primarily aimed at maintaining stock prices affordable for its store-level employees.
So, what does that mean? Well, shareholders will soon find themselves with two additional shares of common stock for every share they currently hold. After the market closes on February 23, these shares will be distributed. And get ready, because the company's stock will commence trading on a post-split basis from February 26, when the market opens!
As a result of this split, Walmart predicts the number of outstanding shares of stock to rise from 2.7 billion to a staggering 8.1 billion! The company's stock opened at $167.80 on Wednesday, just a wee bit below its recent high of $169.94 in November.
Walmart demonstrates a remarkable dedication to its employees, offering an Employee Stock Purchase Plan for almost 30 years. Over 400,000 employees are currently involved in this program. The plan operates by allowing eligible associates to acquire stock via payroll deductions, and the company offers a 15% company match on the first $1,800 yearly.
This recent announcement, designed to make the program even more accessible, is part of the company's "ongoing review of optimal trading and spread levels." As Sam Walton, the company's founder, believed in keeping the share price at a level where purchasing whole shares was accessible, the upcoming stock split encourages more associates to participate.
It's worth noting that this will be the 12th stock split in Walmart's history. The company's most recent two-for-one stock split took place in 1999, a whopping 25 years ago—on the split date, the share market price stood at $89.75.
Fun fact: Walmart went public with 300,000 shares of stock in 1970, priced at $16.50 per share.
Moving forward, earlier this week, the company announced that $20,000 in annual stock grants would be integrated into the overall compensation packages for managers of its Supercenter stores in the U.S. With the stock grants, these managers, who receive an average base salary of $128,000 and could potentially earn a bonus up to 200% of their salary, could potentially earn over $400,000 annually! 🎉
Sources:1. Company Announcement2. Stock Split History Analysis3. Historical Trading Data Research
- In response to the stock split announcement, Walmart's finance department is conducting a study to evaluate the potential impact of this action on the average share price.
- The recent announcement by Walmart suggests the integration of AI in their finance division to analyze and predict the effects of the stock split on business operations.
- Post the stock split, retail investors, including Walmart's store-level employees, stand to benefit significantly from the more affordable common stock.
- Walmart's history of stock splits dates back to 1970, when it initially went public with 300,000 shares, and they have already conducted 11 such splits previously.
