Walmart shares gained Monday following a rare stock split, a move designed to attract a wider range of investors as the retail behemoth storms toward its highest-ever valuation.
Walmart shares rolled forward Monday following the company's first stock split since 1999.
Walmart’s stock split on a 3-1 basis effective Monday, a move announced Jan. 30.
The split resulted in existing investors’ shares tripling as the price per share was cut by two-thirds, keeping Walmart’s total shareholder equity the same while cutting its stock price from $175.56 to $58.52 as of Friday’s closing share price.
Shares of Walmart performed strongly in their first day of trading following the company’s first stock split in 25 years.
The stock rose almost 2% to about $59.60 by early afternoon, just shy of its split-adjusted, intraday record high of over $60 briefly achieved last week but pacing toward its highest-ever closing level ever.
The Walton family, descendants of Walmart founder Sam Walton and the U.S.’ richest family, sold off a small chunk of their stake in Walmart just ahead of the stock split. Regulatory filings made public Friday afternoon indicated a Walton family trust sold off just over $1.5 billion worth of Walmart shares between Wednesday and Friday. The Waltons still own more than 40% of Walmart shares.
Major stock indexes and other major retail stocks were largely flat in Monday trading, though Walmart’s rally coincided with news the federal government intends to sue to block the merger of grocery giants Kroger and Albertsons, news that sent shares of Ohio-based Kroger down 1%. Walmart said in its January announcement the stock split was primarily intended to make the barrier of entry lower for company employees hoping to buy Walmart shares, but the lower share price makes it easier for outside investors looking to purchase full shares of the company as well. Walmart is the largest American company by total revenues and the 14th most valuable American firm by market capitalization at about $480 billion.