Walmart Benefits from Stock Split for First Time in 25 Years From Investing.com

© Reuters. Walmart (WMT) profits from first stock split in 25 years

(Updated – January 31, 2024, 6:21 AM EST)

Shares of Walmart (NYSE:) are trading about 1.3% higher premarket Wednesday after the company announced its first stock split in nearly 25 years.

Walmart said it would conduct a 3-for-1 common stock split “as part of our ongoing review of optimal trading and spread levels and a desire to ensure that employees feel that stock purchases can be easily made.”

“Given our growth and plans for the future, we felt it was a good time to split the stock and encourage our associates to participate over the next few years.” – said Doug McMillon, CEO and President of the company.

The spin-off shares will be issued to shareholders of record after the close of markets on Friday, February 23, 2024 and at the close of business on Thursday, February 22, 2024.

The event comes exactly two months before the 25th anniversary of the company’s last stock split. On April 20, 1999, the company conducted a 2:1 stock split.

“Split changes nothing technically, just the optics,” said analysts at Morgan Stanley.