Walmart’s stock is about to appear a whole lot cheaper
By Elisabeth Buchwald, CNN
New York (CNN) — Walmart is rolling back the prices for investors, too.
That’s because mega retailer is issuing a 3-for-1 stock split, the company announced on Tuesday.
A stock split means a single share gets split into multiple shares. Under the plan Walmart announced, people who own shares by close of business on February 22 will get two new shares of Walmart for every share they own.
The price of Walmart (WMT) shares following the stock split, which will take effect after markets close on February 23, will be divided by three when markets reopen on Monday, February 26. So investors will hold the same value of stock – they’ll just have three times the number of shares they previously held, each worth a third of the price.
In a statement announcing the news Tuesday after markets closed, Walmart said the decision to do a 3-for-1 split was in part so that employees “feel that purchasing shares is easily within reach.”
Shares of Walmart are hovering near an all-time high of nearly $170 that was achieved in November.
The company recently announced it is boosting the average pay of its store managers from $117,000, or by just over 9%.
Walmart is set to report its fourth quarter earnings results on February 20. Analysts surveyed by FactSet anticipated the retailer would report an increase in earnings per share, revenue and profits from the prior quarter.
The-CNN-Wire
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