Walmart (WMT) has announced a 3-for-1 stock split that will take effect in late February. The split will increase the retail giant's outstanding common shares from 2.7 billion to 8.1 billion.

For current shareholders, on Friday, February 23rd, the stock split will be payable after market close that day. Walmart shares will then begin trading on a split-adjusted basis starting the following Monday morning.

Yahoo Finance's Brooke DiPalma breaks down the details.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Angel Smith

Video Transcript

SEANA SMITH: Shares of Walmart edging a bit higher today. Up just about 8/10 of a percent. The company announcing a 3 for 1 stock split. Let's go to "Yahoo Finance's" Brooke DiPalma joining us back on set for the details here. Brooke?

BROOKE DIPALMA: Hello again. Certainly, this is wowing investors after market close. And now, moving into higher settling in here. But this stock split will be payable after market close on Friday, February 23. But it's important to note here that you have to own shares at the end of market close on Thursday, February 22, 2024, that is. And then it will begin trading as such on Monday, February 26.

Now, CEO Doug McMillon saying here that they felt like it was a good time to split the stock and encourage their associates to participate in the years to come. Of course, Walmart is the largest employer here in the US. And this does increase the number of Walmart's outstanding common stock from 2.7 billion shares to 8.1 billion shares.

And important to note here that this is the 11-- This is the-- rather, there was 11 2 for 1 splits. The last one occurred in 1999. But this is the first 3 for 1 split. And this comes on the heels of Walmart announcing earlier this week that starting in April, they will have all US store managers eligible to receive up to $20,000 in stock grants. But it really depends on what store they run, whether it be a super store and for more of a typical store, that stock would be roughly $10,000.

BRAD SMITH: Yeah. This is one of our trending tickers on the "Yahoo Finance" platform here today. Brooke, thanks so much for breaking it down.