Advisors Preferred LLC Acquires New Holdings in Walmart Inc. $WMT

Key Points

• Advisors Preferred LLC initiated a Walmart position of 28,200 shares worth approximately $3.15 million in the second quarter. Institutional investors collectively own 26.76% of Walmart.
• Walmart exceeded quarterly expectations with adjusted EPS of $0.81 versus $0.74 expected and revenue of $187.94 billion, up 5.9% year over year. However, U.S. comparable-sales growth slowed to 2.6%, raising concerns about moderating consumer demand.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and a $131.88 price target, although several firms recently lowered targets. The stock traded near $106.49 and remains expensive at roughly 38 times earnings.

Advisors Preferred LLC bought a new position in shares of Walmart Inc. (NASDAQ:WMT - Free Report) during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund bought 28,200 shares of the retailer's stock, valued at approximately $3,154,000.

Several other institutional investors also recently modified their holdings of the stock. Vanguard Group Inc. raised its position in Walmart by 1.0% in the fourth quarter. Vanguard Group Inc. now owns 439,957,146 shares of the retailer's stock valued at $49,015,626,000 after purchasing an additional 4,304,436 shares during the last quarter. State Street Corp boosted its stake in shares of Walmart by 1.2% during the third quarter. State Street Corp now owns 184,805,978 shares of the retailer's stock valued at $19,046,104,000 after purchasing an additional 2,242,364 shares in the last quarter. Geode Capital Management LLC grew its holdings in shares of Walmart by 6.8% during the fourth quarter. Geode Capital Management LLC now owns 103,010,709 shares of the retailer's stock worth $11,426,753,000 after purchasing an additional 6,517,394 shares during the last quarter. Norges Bank bought a new stake in shares of Walmart during the fourth quarter worth about $6,458,529,000. Finally, Fisher Asset Management LLC increased its stake in shares of Walmart by 0.8% in the fourth quarter. Fisher Asset Management LLC now owns 40,626,852 shares of the retailer's stock valued at $4,526,238,000 after buying an additional 328,229 shares during the period. 26.76% of the stock is currently owned by institutional investors and hedge funds.

Key Walmart News

Here are the key news stories impacting Walmart this week:

• Positive Sentiment: Unusually heavy call-option activity may indicate increased near-term bullish interest. Investors purchased 166,747 call options, about 33% above the typical daily volume. However, options activity is speculative and does not guarantee further gains.
• Positive Sentiment: Walmart is rolling out tap-to-pay and NFC capabilities across its U.S. stores and clubs. The move could improve checkout convenience, support mobile-wallet adoption and strengthen customer engagement as digital sales and membership become more important. Can Walmart's Tap to Pay Push Strengthen Customer Engagement?
• Positive Sentiment: The company is introducing Scenario, a mostly sub-$25 fashion brand aimed at younger shoppers. Walmart hopes the offering will attract value-conscious consumers and improve its competitive position against Amazon in apparel. Walmart Aims to Take On Amazon With Trendier Apparel
• Neutral Sentiment: Walmart’s latest quarter exceeded expectations, with adjusted earnings of $0.81 per share versus roughly $0.74 expected and revenue of $187.94 billion, up 5.9% year over year. Full-year sales guidance was also raised to 4%-5%, but the outlook implies moderating growth.
• Negative Sentiment: U.S. comparable sales growth slowed to 2.6%, compared with 4.1% in the prior quarter and 4.6% a year earlier. Investors remain concerned that cautious consumers and uneven spending are pressuring traffic and discretionary purchases.
• Negative Sentiment: Several analysts reduced Walmart’s price targets or issued more cautious forecasts after the earnings report. Critics also argue that the stock remains expensive at roughly 36 times forward earnings despite decelerating growth, limiting upside.

Insider Activity at Walmart

In other Walmart news, EVP Daniel J. Bartlett sold 3,710 shares of the company's stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $113.10, for a total transaction of $419,601.00. Following the sale, the executive vice president owned 626,299 shares of the company's stock, valued at approximately $70,834,416.90. This represents a 0.59% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Christopher James Nicholas sold 2,900 shares of the stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $106.34, for a total value of $308,386.00. Following the sale, the executive vice president owned 569,153 shares of the company's stock, valued at approximately $60,523,730.02. The trade was a 0.51% decrease in their ownership of the stock. 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. Insiders sold a total of 57,064 shares of company stock valued at $6,697,788 over the last 90 days. 0.09% of the stock is owned by company insiders.

Analyst Ratings Changes

Several equities research analysts recently commented on WMT shares. UBS Group cut their target price on shares of Walmart from $141.00 to $130.00 and set a "buy" rating on the stock in a research report on Friday. Mizuho set a $130.00 price target on shares of Walmart in a research report on Monday, July 27th. Raymond James Financial reaffirmed an "outperform" rating and set a $130.00 price target on shares of Walmart in a research note on Friday. BNP Paribas Exane reiterated an "outperform" rating and set a $137.00 price target (down from $146.00) on shares of Walmart in a report on Friday. Finally, Gordon Haskett cut shares of Walmart from a "buy" rating to an "accumulate" rating in a research note on Thursday, August 20th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $131.88.

Walmart Stock Performance

NASDAQ:WMT opened at $106.49 on Tuesday. The company has a market capitalization of $847.46 billion, a PE ratio of 38.44, a P/E/G ratio of 3.91 and a beta of 0.61. The company has a 50 day simple moving average of $113.06 and a two-hundred day simple moving average of $121.09. The company has a debt-to-equity ratio of 0.41, a quick ratio of 0.23 and a current ratio of 0.77. Walmart Inc. has a fifty-two week low of $95.42 and a fifty-two week high of $135.15.

Walmart (NASDAQ:WMT - Get Free Report) last released its quarterly earnings results on Thursday, August 20th. The retailer reported $0.81 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.74 by $0.07. The firm 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 company's revenue was up 5.9% compared to the same quarter last year. During the same quarter last year, the business earned $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. Research analysts anticipate that Walmart Inc. will post 2.86 earnings per share for the current year.

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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