Walmart's 3-for-1 Stock Split: What the Move Means for Your Portfolio

A Bid to Boost Employee Ownership

Retail giant Walmart (WMT) executed a 3-for-1 stock split earlier this year, its first such move since October 1999. The stock began trading on a post-split basis on February 26, 2024, effectively reducing its share price from around $165 to approximately $55.

According to the company, the primary driver was to make share ownership more accessible for its employees. "Sam Walton believed it was important to keep our associates as partners in our success," said CEO Doug McMillon. He noted that with the stock price approaching $170, purchasing full shares had become more difficult for some of its workforce. Walmart is the largest private employer in the U.S., and over 400,000 of its associates participate in its stock purchase plan.

How It Worked and What It Means for Investors

A stock split doesn't change a company's fundamental value or your total investment worth. If you owned one share of Walmart worth $165, you now own three shares worth about $55 each. The total value remains the same.