144,600 Shares in Walmart Inc. $WMT Acquired by Primecap Management Co. CA

Key Points

• Primecap Management acquired 144,600 Walmart shares during the second quarter, valued at approximately $16.4 million. Other institutions also initiated positions, and institutional investors collectively own 26.76% of the company.
• Walmart reported quarterly revenue of $187.94 billion, up 5.9% year over year, and earnings of $0.81 per share, exceeding analysts’ $0.74 estimate. Global e-commerce rose 23% and advertising revenue increased 38%.
• Walmart maintains a “Moderate Buy” consensus rating with an average price target of $131.88, but shares recently traded near $103 amid valuation concerns, slower core sales growth and a tougher consumer environment.

Primecap Management Co. CA bought a new stake in Walmart Inc. (NASDAQ:WMT - Free Report) during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm bought 144,600 shares of the retailer's stock, valued at approximately $16,377,000.

Several other hedge funds have also recently added to or reduced their stakes in the business. Palisade Capital Management LP acquired a new position in Walmart during the 2nd quarter worth $2,680,000. Cooper Haims Advisors LLC bought a new position in shares of Walmart in the second quarter worth $305,000. Canada Pension Plan Investment Board acquired a new position in shares of Walmart during the second quarter valued at $796,677,000. Castlekeep Investment Advisors LLC acquired a new position in shares of Walmart during the second quarter valued at $943,000. Finally, Castleark Management LLC bought a new stake in shares of Walmart during the second quarter valued at about $10,371,000. Institutional investors own 26.76% of the company's stock.

Key Walmart News

Here are the key news stories impacting Walmart this week:

• Positive Sentiment: Walmart’s fiscal second-quarter results showed continued momentum beyond traditional store sales: revenue reached approximately $187.9 billion, global e-commerce grew 23%, and advertising revenue increased 38%. These higher-growth businesses could support future margins and cash flow. Walmart Growth Engine Hums
• Positive Sentiment: Analysts and commentary continue to point to Walmart’s expanding e-commerce, digital advertising, memberships, convenience-led fulfillment, automation and AI initiatives as reasons the recent decline could represent a long-term buying opportunity. Walmart’s scale and value-focused pricing remain important competitive advantages. Walmart Continues to Grow Beyond Retail
• Neutral Sentiment: Walmart settled a U.S. Justice Department lawsuit alleging that its pharmacies unlawfully contributed to the opioid epidemic. Resolving the case removes an overhang and reduces legal uncertainty, although the financial terms and any broader implications remain important for investors. Walmart Settles U.S. Opioid Lawsuit
• Negative Sentiment: Recent coverage highlights a potentially tougher consumer environment. Walmart’s comparable sales growth was 3.4% excluding pharmacy-related items, while middle-income shoppers appear increasingly focused on necessities and limiting discretionary purchases. Walmart and Home Depot Results
• Negative Sentiment: Investors are also questioning whether Walmart’s valuation adequately reflects its strong performance. A high earnings multiple, slower core sales growth and the stock’s position below its moving averages have amplified the impact of the recent selloff. Walmart Selloff Analysis
• Negative Sentiment: Executive Vice President Daniel Danker sold 50,644 shares worth approximately $5.3 million. The sale was made under a pre-arranged Rule 10b5-1 plan to cover taxes on vested equity awards, making it a weaker bearish signal than discretionary insider selling. Walmart Insider Trading Filing

Walmart Price Performance

Shares of NASDAQ WMT opened at $103.09 on Friday. Walmart Inc. has a twelve month low of $95.79 and a twelve month high of $135.15. The company has a current ratio of 0.77, a quick ratio of 0.23 and a debt-to-equity ratio of 0.41. The company has a market capitalization of $820.40 billion, a price-to-earnings ratio of 37.22, a PEG ratio of 3.90 and a beta of 0.61. The firm has a 50-day moving average of $111.90 and a two-hundred day moving average of $120.45.

Walmart (NASDAQ:WMT - Get Free Report) last posted its quarterly earnings data on Thursday, August 20th. The retailer reported $0.81 earnings per share for the quarter, beating the consensus estimate of $0.74 by $0.07. The company had revenue of $187.94 billion during the quarter, compared to analyst estimates of $186.64 billion. Walmart had a net margin of 3.00% and a return on equity of 21.83%. The business's revenue for the quarter was up 5.9% on a year-over-year basis. During the same quarter last year, the firm posted $0.68 EPS. Walmart has set its Q3 2027 guidance at 0.620-0.640 EPS and its FY 2027 guidance at 2.800-2.870 EPS. As a group, analysts expect that Walmart Inc. will post 2.87 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on the stock. Robert W. Baird reduced their price objective on shares of Walmart from $140.00 to $120.00 and set an "outperform" rating for the company in a report on Friday, August 21st. Gordon Haskett downgraded shares of Walmart from a "buy" rating to an "accumulate" rating in a research report on Thursday, August 20th. DA Davidson set a $132.00 price target on shares of Walmart and gave the stock a "buy" rating in a research note on Friday, August 21st. Raymond James Financial reiterated an "outperform" rating and issued a $130.00 price objective on shares of Walmart in a report on Friday, August 21st. Finally, Weiss Ratings lowered shares of Walmart from a "buy (b)" rating to a "buy (b-)" rating in a research note on Friday, July 31st. Three analysts have rated the stock with a Strong Buy rating, thirty-two have assigned a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $131.88.

Insider Buying and Selling at Walmart

In related news, EVP Daniel Danker sold 50,644 shares of the firm's stock in a transaction that occurred on Wednesday, August 26th. The shares were sold at an average price of $105.35, for a total transaction of $5,335,345.40. Following the completion of the sale, the executive vice president directly owned 201,672 shares in the company, valued at approximately $21,246,145.20. This trade represents a 20.07% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP Christopher James Nicholas sold 2,900 shares of Walmart stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $106.34, for a total transaction of $308,386.00. Following the completion of the transaction, the executive vice president owned 569,153 shares in the company, valued at approximately $60,523,730.02. This trade represents a 0.51% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 77,292 shares of company stock valued at $8,421,143. 0.09% of the stock is currently owned by corporate insiders.

About Walmart

Walmart is a multinational retail corporation that operates a broad portfolio of store formats and digital services. Its core business includes large-format supercenters, discount department stores, neighborhood grocery stores and a membership warehouse chain, Sam’s Club. The company’s merchandising mix covers groceries, household goods, apparel, electronics and pharmacy services, supplemented by private-label products and category-specific offerings. Walmart pairs its physical store network with online platforms and mobile applications to provide omnichannel shopping, fulfillment and delivery options for consumers and businesses.

The company was founded by Sam Walton, who opened the first store in Rogers, Arkansas in 1962; it is headquartered in Bentonville, Arkansas.

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