• From Barron's:
"Walmart announced its first stock split since 1999 on Tuesday, sending the stock higher in after-hours trading. The company declared a 3-for-1 split.
All shareholders will receive two additional shares of common stock for each share held. The new shares will be issued after the market closes on Feb. 23, and will begin trading on Feb. 26.
"Walmart expects the number of outstanding common shares to jump from approximately 2.7 billion shares to 8.1 billion."
Barron's notes that "companies often perform a stock split when they feel their share price has gotten too high to attract investors. In a split, the company breaks up existing shares to create a higher number of lower-value shares, making it more affordable, especially for small or retail investors."
“Sam Walton believed it was important to keep our share price in a range where purchasing whole shares, rather than fractions, was accessible to all of our associates,” CEO Doug McMillon said in a prepared statement. “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.”
The move comes in the same week as Walmart said it would make stock grants to all its US store managers, giving them the same benefit that long has gone to higher level executives.