Walmart Inch (NYSE: $WMT) is a multinational corporation that operates a chain of retail hypermarkets, grocery stores, and discount stores in the US. Additionally, it owns and operates Sam’s Club retail warehouses. Based in Bentonville, AR, it had a revenue of $611.3 billion in its most recent fiscal year.
Walmart To Split Stock At 3-for-1
On January 30, 2024, the company announced it would split its stock at a 3:1 ratio for all outstanding shares of its common stock. According to the giant retailer, the split is part of its ongoing review of optimal spread and trading levels. The company said it wants to ensure that its associates feel that buying WMT stock was within reach.
Over 400K Walmart associates participate in the company’s stock purchase plan. The program allows eligible associates to buy WMT stock via payroll deductions and comes with a 15% match from Walmart on the first $1,800 stocks purchased yearly.
The shares resulting from the stock split will be distributed after the market closes on Friday, February 23, 2024, to shareholders recorded at the end of the business day on Thursday, February 22, 2024. Additionally, Walmart is expected to release its FY24 earnings on February 20, 2024, before markets open.
Regarding the stock split, Walmart CEO Doug McMillon said, “Sam Walton believed it was important to keep our share price in a range where purchasing whole shares, rather than fractions, was accessible to all of our associates.”
He added, “Given our growth and our plans for the future, we felt it was a good time to split the stock and encourage our associates to participate in the years to come. As Sam said, ‘We’re all in this together. That’s the secret.'”
Walmart Announces $20K Stock Grant For US Store Managers
Walmart has announced that they will add a $20K stock grant for U.S. Supercenter store managers as part of their annual compensation packages. The grant, announced by Walmart USA CEO John Furner, will be implemented starting in April 2024. Walmart Neighborhood Market/ Division 1 store managers will receive a $15K stock grant, while Hometown store managers will receive a $10K one.
Moreover, Walmart USA announced on January 18, 2024, that it would raise the salaries of store managers to $128K a year. Coupled with the newly announced stock grant, a Walmart US Supercenter manager could receive over $400K in yearly compensation.
Compensation on the revamped compensation packages, CEO John Furner said, “A Walmart store manager is running a multimillion-dollar business and managing hundreds of people,”
He added, “it’s a far more complex job today than when I managed a store. And we ask our managers to own their roles and to act like owners. And now, they’ll literally be owners.”
The company is set to release its fourth quarter and full-year earnings on February 20, 2024. In Q3, Walmart reported a 5.2% Y/Y rise in revenue to $160.8 billion.
Stock Update: $WMT
$WMT is currently trading at $166.30, with a gain of 0.43% from its previous close of $165.59. At the time of writing, the market cap is $448.06 billion, with a volume of 4,126,676. The stock has gained 4.4% since the beginning of 2024.
Should You Add WMT Stock To Your Portfolio?
Walmart is splitting its stocks at a 3:1 ratio and granting a $20k stock grant for U.S. store managers. It indicates the company’s commitment towards success through its associates. Given the company’s consistent growth, the upcoming earnings release on February 20, 2024, is eagerly anticipated.
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