Walmart is trying to get back to one of its roots with recent moves that make it easier for employees to own shares in the company.
The company said last Monday it will award store managers annual stock grants of up to $20,000.
A day later, it announced a 3:1 stock split that will make purchasing full shares more accessible for individual investors, namely employees participating in the company's share-purchase program.
CEO Doug McMillon said the decision moves the company closer to founder Sam Walton's desire to make purchasing whole shares within reach for associates.
"Sam and Helen both wanted all of our associates to participate in the upside of the company," McMillon told John Furner, who leads Walmart's US division, on Furner's podcast Thursday. "One of the ways we do that is with a share purchase plan."
Furner previously said Walmart wants store managers to "act like owners" in his video announcing the stock grants that range from $10,000 to $20,000.
"A Walmart store manager is running a multi-million dollar business and managing hundreds of people, and it's a far more complex job today than when I managed a store," Furner said in the video.
Walmart's share price has been over $100 since the spring of 2019, and McMillon said that can make it hard for an associate to buy complete shares through payroll deduction.
Now, with the 3:1 split, if the share price is $165, associates can get the share for around $55, which makes it a lot more accessible, McMillon said.
Those who own stocks will get dividends over the years, allowing associates to share in the success of the company. McMillon also said in the podcast that the company puts an emphasis on saving.
McMillon noted that more than 400,000 associates participate in Walmart's Associate Stock Purchase Plan, which allows eligible associates to buy stock through payroll deductions and grants a 15% company match on the first $1,800 each year.
While the shared purchase plan has been around for a while, McMillon said in the podcast that he hopes this moment will remind everybody that this is one more way to save for the future.
The announcements came the same week that store managers saw a bump in their annual salaries by over 9% on February 1.
In addition, Walmart plans to overhaul 650 stores across the country over the next year and build or convert over 150 stores in the next five years.
FAQs
Walmart made two moves last week that will make it easier for employees to own company shares. Managers will receive annual stock grants of up to $20,000 and the company announced a 3:1 stock split. Walmart CEO said these moves make it more accessible for store associates to purchase shares.
Who is the biggest shareholder of Walmart? ›
Jim Walton, Alice Walton, and Rob Walton are the top three individual shareholders of Walmart. Walmart's largest institutional investors include the John T. Walton Estate Trust, Vanguard Group, and BlackRock.
Who owns the other 50% of Walmart? ›
It is a publicly traded family-owned business, as the company is controlled by the Walton family. Sam Walton's heirs own over 50 percent of Walmart through both their holding company Walton Enterprises and their individual holdings.
What is the Walmart stock purchase plan for employees? ›
More than 400,000 associates participate in Walmart's Associate Stock Purchase Plan today, which allows eligible associates to buy stock conveniently through payroll deductions and provides a 15% company match on the first $1,800 each year.
Why is everybody selling Walmart stock? ›
The reasons to sell Walmart
The bears believe Walmart's stock is historically expensive now -- it traded at less than 20 times earnings throughout most of the 2010s, and it's pricier than most of its industry peers. Target, for example, trades at just 18 times forward earnings.
How much of Walmart does China own? ›
However, when it comes to the ownership of Walmart stores in America, there is no evidence to suggest that China holds any ownership stake. Walmart, a multinational retail corporation, was founded by Sam Walton in 1962 and is still largely controlled by the Walton family.
Who is the billionaire owner of Walmart? ›
Meet Lukas Walton, the fiercely private heir to the Walmart empire who is the richest person in Illinois. Lukas Walton is the grandson of Sam Walton, the American businessman who created the Walmart empire. After his father died in a plane crash in 2015, Lukas reportedly inherited a third of his fortune.
Does Warren Buffett own Walmart? ›
World's third richest person Warren Buffet's Berkshire Hathaway has sold its last Walmart shares, ending a relationship of over 20 years. The world's largest retailer was once among Berkshire's five biggest equity holdings as recently as 2014, valued at over $5 billion.
Does Costco own Walmart? ›
Costco is a publicly traded company, while Sam's Club is a subsidiary of Walmart.
Does Walt Disney own Walmart? ›
Walmart is a major store chain that was founded by Sam Walton in 1962. Although not owned by Disney, it has sold a number of exclusive video, DVD, and Blu-ray releases of various Disney-related productions.
Investing $1,000 In Walmart IPO: Walmart offered shares for $16.50 on Oct. 1, 1970 for its IPO. A $1,000 investment could have purchased 60.61 shares of Walmart stock.
What happens to Walmart stock when you quit? ›
If you choose to close your account, you'll receive a check for your shares. You can avoid additional fees if you wait to complete the transaction until you receive your final paycheck and your last stock purchase has been posted.
How much will Walmart stock be worth in 10 years? ›
Walmart stock price stood at $64.93
According to the latest long-term forecast, Walmart price will hit $90 by the end of 2024 and then $100 by the middle of 2025. Walmart will rise to $110 within the year of 2027, $125 in 2028, $150 in 2030 and $200 in 2035.
Who now owns Walmart? ›
The Walton family is the largest shareholder of Walmart, holding 50% of the company's shares. The Walton family acquired such high ownership of the company because they are the descendants of Sam Walton, who founded the company. The family received a majority of the shares via inheritance and made additional purchases.
Where do the owners of Walmart live? ›
BENTONVILLE, Ark. —
The Walton Family is the richest family in the world. It owes its wealth to the Walmart company started by brothers Sam & Bud Walton in Northwest Arkansas more than six decades ago.
Is Walmart a good buy right now? ›
Is WMT a Buy, Sell or Hold? Walmart has a conensus rating of Strong Buy which is based on 25 buy ratings, 3 hold ratings and 0 sell ratings. The average price target for Walmart is $70.24. This is based on 28 Wall Streets Analysts 12-month price targets, issued in the past 3 months.
Is the Walton family still involved with Walmart? ›
The Walton family owns about 45% of Walmart's outstanding shares through the trust and their main investment vehicle, Walton Enterprises, data compiled by Bloomberg show. Alice, Jim and Rob Walton have a combined fortune of $274 billion, according to the Bloomberg Billionaires Index.
Who makes the most money from Walmart? ›
The highest paying jobs at Walmart are software engineer, co-manager, inventory management specialist, and department manager.
What is Alice Walton's net worth? ›
