Walmart (WMT) 3-for-1 Stock Split (2024)

FAQs

Walmart (WMT) 3-for-1 Stock Split? ›

Walmart plans to complete a 3 for 1 stock split on February 26, 2024. All holders of WMT will receive 3 shares of WMT in exchange for every 1 WMT share held at the close of trading on February 23, 2024. This will affect all WMT shareholders.

The company's 3-for-1 split means investors will receive an additional two shares for each one they already own. The move will increase the firm's outstanding shares from 2.7 billion to about 8.1 billion. Walmart last did this in April 1999, when it split shares on a 2-for-1 basis.

"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," McMillon wrote. With a three-for-one stock split, each old share becomes equal to three shares. In turn, the price per share becomes cheaper.

Do stock splits benefit investors? – It's nice to own more shares after a split, since the reduced per-share price might mean there's room for greater potential price growth.

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.

Stock splits often serve as a trust signal to investors from company leadership. It indicates that management believes the company's future is bright and the stock price will continue to rise, even after the split lowers the price.

30, 2024 — Walmart Inc. (NYSE: WMT) announced that it will conduct a split of its outstanding shares of common stock at a ratio of 3:1.

Walmart stock price stood at $59.35

According to the latest long-term forecast, Walmart price will hit $75 by the end of 2024 and then $80 by the middle of 2025. Walmart will rise to $85 within the year of 2026, $100 in 2027, $110 in 2028, $125 in 2030 and $150 in 2034.

Which stock will double in 3 years? ›

Walmart has a consensus rating of Strong Buy which is based on 25 buy ratings, 4 hold ratings and 0 sell ratings. The average price target for Walmart is $70.76. This is based on 29 Wall Streets Analysts 12-month price targets, issued in the past 3 months.

The split may elicit additional interest in the company's stock, but fundamentally investors are no better or worse off than before, since the market value of their holdings stays the same.

Walmart has a consensus rating of Strong Buy which is based on 24 buy ratings, 3 hold ratings and 0 sell ratings. The average price target for Walmart is $70.46. This is based on 27 Wall Streets Analysts 12-month price targets, issued in the past 3 months.

The split resulted in existing investors' shares tripling as the price per share was cut by two-thirds, keeping Walmart's total shareholder equity the same while cutting its stock price from $175.56 to $58.52 as of Friday's closing share price.

It's basically a draw, and the value of your investment won't change. However, investors generally react positively to stock splits, partly because these announcements signal that a company's board wants to attract investors by making the price more affordable and increasing the number of shares available.

Reverse stock split ratios: What they mean

In a 1-to-3 reverse stock split, a person with 3 shares now has 1 share. Subsequently, each of those shares is now worth 3 times the previous value.