What is a 3-for-1 stock split?

A 3-for-1 stock split means that for every one share of stock an investor currently owns, they will receive two additional shares, resulting in a total of three shares. The total market value of the investor's holdings is expected to remain the same immediately after the split, but the price per share will be one-third of the pre-split price.

Will the stock split affect the value of my investment?

Immediately after the stock split, the total value of your investment in Walmart should remain the same. However, the number of shares you own will increase, and the price per share will decrease proportionally. For example, if you owned 100 shares at $300 each (totaling $30,000), after a 3-for-1 split, you would own 300 shares at $100 each (still totaling $30,000).

When will I see the additional shares in my brokerage account?

Shareholders of record as of the close of business on February 22, 2024, are expected to receive their additional shares after the close of trading on February 23, 2024. However, trading on a split-adjusted basis will commence on February 26, 2024, so you will likely see the adjusted share count and price reflected in your account by then.

Does the stock split change Walmart's underlying business or financial health?

No, a stock split is a purely cosmetic change that affects the number of shares outstanding and the price per share. It does not alter Walmart's fundamental business operations, assets, liabilities, or overall financial health. The primary goal is often to make the stock more affordable and accessible to a wider range of investors.

WMT 8-K: Corporate Changes

Summary

Walmart Inc. has officially executed a 3-for-1 forward stock split, a significant event for its shareholders. The company filed a Certificate of Amendment to its Restated Certificate of Incorporation, which became effective on February 23, 2024. This move, previously announced, increases the number of authorized shares and aims to make the stock more accessible to a broader range of investors by lowering the per-share price. Shareholders of record as of the close of business on February 22, 2024, will receive two additional shares for each share they held, effectively tripling their holdings. The par value per share remains unchanged. Trading on a split-adjusted basis is set to commence on February 26, 2024, and the total number of outstanding shares will increase substantially from approximately 2.68 billion to over 8.05 billion.

Key Highlights

1Walmart Inc. has completed a 3-for-1 forward stock split, effective February 23, 2024.
2The stock split was authorized by the Board of Directors on January 30, 2024.
3The number of authorized common shares has increased from 11 billion to 33 billion.
4Shareholders of record as of February 22, 2024, will receive two additional shares per share owned.
5The par value of $0.10 per share remains unchanged.
6Trading on a split-adjusted basis will begin on February 26, 2024.
7The total outstanding shares are expected to increase from approximately 2.68 billion to over 8.05 billion.

Walmart Inc. 8-K Report, Bylaw Amendment (Feb 23, 2024)

Summary

Key Highlights

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