Is Walmart A Publicly Traded Company in 2023? A Deep Dive for Investors
If you‘re curious whether everyday investors can buy stock in retail giant Walmart, the short answer is yes! Walmart is a publicly traded company, meaning its shares are open for anyone to purchase on the stock market.
But what exactly does it mean for Walmart to be "publicly traded"? How did it become a public company? Who are the major shareholders today? And how can an average investor like yourself buy Walmart shares?
This in-depth guide will walk you through everything you need to know about investing in this staple of American retail. I‘ll share key history, data, analysis, and tips from my decade of experience in e-commerce and Amazon account management.
Let‘s dive in!
A Look Back: How Walmart Went Public
First, let‘s travel back to the beginnings of the Walmart corporation. Walmart was founded in 1962 by Sam Walton in Rogers, Arkansas. Walton opened the first Walmart discount store in July of that year.
For the rest of the 1960s, Walmart rapidly expanded across Arkansas, Missouri, Oklahoma, Louisiana, and Texas. There were 24 stores by the end of the decade.
To fund this rapid expansion across the southern US, Walmart needed a major infusion of capital. Bank lending could only go so far. So the company decided to sell stock shares to the public through an initial public offering (IPO).
Here‘s a quick timeline of Walmart going public:
- October 1970 – Walmart conducts its IPO at $16.50 per share
- October 1972 – Walmart begins trading on the NYSE at $47 per share
- 2022 – Walmart market cap reaches $330 billion with over 10,000 stores worldwide
The IPO allowed everyday Americans to buy ownership stakes in this burgeoning retail chain. And shareholders were handsomely rewarded, with stock values rising 185% from the IPO to the NYSE listing.
Let‘s take a closer look at the numbers behind Walmart‘s growth since going public:
| Year | # of Stores | Revenue | Net Income | Stock Price |
|---|---|---|---|---|
| 1972 | 78 | $78 million | N/A | $47 |
| 1980 | 276 | $1.2 billion | $41 million | $7 |
| 1990 | 1,528 | $25 billion | $1.1 billion | $8 |
| 2000 | 4,163 | $165 billion | $6.7 billion | $53 |
| 2010 | 8,416 | $421 billion | $14 billion | $53 |
| 2020 | 11,510 | $524 billion | $13.5 billion | $128 |
Data from Walmart annual reports
As you can see, tapping into public capital through its IPO allowed Walmart to expand from 78 stores in 1972 to over 11,000 today. Revenues have soared past $500 billion annually.
Now let‘s take a look at who the major shareholders are that own Walmart stock today.
Who Owns the Most Walmart Shares Now?
Walmart has been publicly traded on the NYSE for so long now that ownership is quite diverse:
The Walton Family – Direct descendants of founder Sam Walton own over 50% of Walmart shares through Walton Enterprises and the Walton Family Holdings Trust.
Institutional Investors – Approximately 35% of Walmart shares are held by mutual funds (Vanguard owns 4.9%), hedge funds, insurance companies, pension funds, etc.
Individual Investors – Estimated at over 30% of shares. This includes everyday Americans who own Walmart stock through brokerage accounts and 401(k)s.
Company Insiders – Walmart executives like CEO Doug McMillon own relatively small numbers of shares (less than 1% combined).
As you can see, ownership of this massive retail corporation is spread across many different types of shareholders. But the Walton family maintains majority control even as Walmart‘s value has ballooned over 50 years on public markets.
Next, let‘s go over how an average investor like yourself can buy Walmart shares.
How to Buy Walmart Stock in 3 Simple Steps
Here is the game plan for purchasing Walmart stock:
Open a Brokerage Account – The first step is to open an investment account with an online brokerage like Fidelity, E-Trade, Vanguard, etc. This provides a platform to buy and sell stocks.
Fund Your Account – Transfer money into your new brokerage account to cover the cost of shares and commissions. Even $100 can get you started buying stocks like Walmart.
Place Your Trade – Finally, place a market order for the number of Walmart shares you want, at the current market price. Enter "WMT" as the stock symbol. And you‘re all set!
It‘s really that easy to gain an ownership stake in Walmart. Your brokerage firm handles the back-end stock purchase and adds the shares to your account.
Now let‘s go over some tips for tracking Walmart‘s stock performance as part of your portfolio.
Monitoring Your Walmart Investment
Once you‘ve bought some shiny new Walmart shares, you‘ll want to keep an eye on your investment. Here are some tips:
Check WMT‘s stock price daily on finance sites like Yahoo Finance. See how it moves over time.
Log into your brokerage account to view real-time data on your WMT holdings – share price, dollar value, percent gain/loss.
Study WMT‘s historical price charts. How has the stock moved on a 6-month, 1-year, or 5-year timeline? Steady upward trend?
Analyze key metrics like P/E ratio, EPS, dividend yield. Is WMT undervalued or overvalued? How profitable is it?
Read Walmart‘s quarterly earnings reports. How do revenues, expenses, and profits look? Management outlook for the future?
Consider dollar cost averaging – making consistent investments over long periods of time to smooth out market swings.
The goal is to make data-driven decisions and maintain a long-term mindset. Don‘t stress daily price fluctuations.
Risks and Strategies for Walmart Investors
While Walmart is a "blue chip" stalwart, investing in retail does come with some sector-specific risks to know:
Consumer spending may decline during recessions, pressuring retailers.
Thin profit margins leave little room for error in controlling costs.
Online shopping disruption continues to shake up the retail landscape.
But the flip side is retailers like Walmart have survived decades of market cycles and adapted over time. Here are some smart tips for investing in retail:
Diversify across different stocks and sectors – don‘t put all your eggs in one basket.
Maintain long-term holdings instead of trading short term – less stress, less tax burden.
Reinvest dividends and set stop losses to lock in gains as the stock rises over time.
Dollar cost average into the stock at regular intervals – don‘t try to time the market.
Don‘t panic sell on temporary bad news – make calm, rational decisions.
Follow these strategies, track Walmart‘s performance diligently, and your investment should reward you well for years to come!
Conclusion
I hope this guide gave you a deep understanding of Walmart‘s history as a public company and how everyday investors like you can buy Walmart stock. The key takeaways are:
Walmart has been publicly traded for over 50 years since its 1970 IPO.
Billions in market value and thousands of stores later, the Walton family still owns over 50% of Walmart.
But average investors also own significant Walmart shares through brokerage accounts and funds.
You can easily purchase Walmart stock yourself in just a few clicks these days.
Monitor your investment regularly, focus on long-term gains, and mitigate risks through smart strategies.
Walmart‘s sheer size and dominance in retail make it a compelling stock to buy and "set and forget" in your portfolio for decades to come. Here‘s to profitable Walmart investing!
