Walmart 's plan to split its stock into three pieces should do nothing for the underlying strength of the retail giant's business, but history suggests the move might make shareholders richer anyway.
"Stocks have historically outperformed the market immediately following the split announcement, as well as 6-months following the split effective date.
In the six months after the effective date, the newly split shares outperformed the index by 4.7%.
Walmart stock closed at $165.59 per share on Tuesday, less than $5 from its all-time high.
For Walmart specifically, Oppenheimer analyst Rupesh Parikh said in a note to clients on Wednesday that the stock split is just a reassurance that the company is on the right track.
Persons:
Outperformance, Morgan Stanley, Boris Lerner, Lerner, Oppenheimer, Rupesh Parikh, Parikh, — CNBC's Michael Bloom
Organizations:
Walmart