Walmart Stock Splits 3-1, Surges to Record High Share Price

Walmart’s stock split, announced on Jan. 30, saw its shares surge on Monday, aiming to attract a broader investor base and achieving its highest valuation ever. The split, effective Monday, was on a 3-1 basis, tripling existing investors’ shares while reducing the price per share to one-third, maintaining the company’s total shareholder equity. This move lowered Walmart’s stock price from $175.56 to $58.52, based on Friday’s closing price.

In its first day of trading post-split, Walmart’s shares performed strongly, rising nearly 2% to around $59.59 at close, just below its split-adjusted intraday record high reached briefly last week. However, it marked the highest-ever closing level for the company.

A notable development surrounding the split was the Walton family, the richest family in the U.S. and descendants of Walmart’s founder, Sam Walton, selling a portion of their stake in Walmart just ahead of the stock split. Regulatory filings revealed that a Walton family trust sold over $1.5 billion worth of Walmart shares between Wednesday and Friday. Despite this sale, the Waltons still hold more than 40% of Walmart shares.

The stock split coincided with other market news, including the federal government’s intention to sue to block the merger of grocery giants Kroger and Albertsons, which impacted Kroger’s shares negatively, dropping 1% in Monday trading.

Walmart’s January announcement regarding the stock split highlighted its aim to lower the barrier for company employees to buy shares. However, the reduced share price also makes it more accessible for outside investors seeking to purchase full shares of the company. Walmart stands as the largest American company by total revenues and ranks 14th in terms of market capitalization, valued at around $480 billion.