Capital Research Global Investors Decreases Holdings in Walmart Inc. $WMT

Key Points

• Capital Research Global Investors cut its Walmart stake by 25.7% in the fourth quarter, selling 485,566 shares and leaving it with 1,404,306 shares worth about $156.5 million.
• Walmart reported Q1 earnings of $0.66 per share, matching estimates, while revenue of $177.75 billion came in above expectations and rose 7.4% year over year.
• Analysts remain generally constructive on the stock, with a Moderate Buy consensus and an average target price of $138.85, though some are watching pricing pressure and tariff-related costs as potential headwinds.

Capital Research Global Investors trimmed its holdings in shares of Walmart Inc. (NASDAQ:WMT - Free Report) by 25.7% in the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 1,404,306 shares of the retailer's stock after selling 485,566 shares during the period. Capital Research Global Investors' holdings in Walmart were worth $156,454,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors also recently bought and sold shares of the business. Vanguard Group Inc. lifted its holdings in Walmart by 1.0% during the 4th quarter. Vanguard Group Inc. now owns 439,957,146 shares of the retailer's stock worth $49,015,626,000 after buying an additional 4,304,436 shares during the last quarter. State Street Corp lifted its holdings in Walmart by 1.2% during the 3rd quarter. State Street Corp now owns 184,805,978 shares of the retailer's stock worth $19,046,104,000 after buying an additional 2,242,364 shares during the last quarter. Geode Capital Management LLC lifted its holdings in Walmart by 6.8% during the 4th quarter. Geode Capital Management LLC now owns 103,010,709 shares of the retailer's stock worth $11,426,753,000 after buying an additional 6,517,394 shares during the last quarter. Norges Bank purchased a new stake in Walmart during the 4th quarter worth about $6,458,529,000. Finally, Fisher Asset Management LLC lifted its holdings in Walmart by 0.8% during the 4th quarter. Fisher Asset Management LLC now owns 40,626,852 shares of the retailer's stock worth $4,526,238,000 after buying an additional 328,229 shares during the last quarter. 26.76% of the stock is owned by hedge funds and other institutional investors.

Walmart Stock Performance

Shares of WMT stock opened at $119.83 on Tuesday. The stock has a market capitalization of $953.62 billion, a PE ratio of 42.05, a price-to-earnings-growth ratio of 4.44 and a beta of 0.60. Walmart Inc. has a 52-week low of $93.43 and a 52-week high of $135.15. The stock's 50-day moving average price is $125.57 and its 200 day moving average price is $121.33. The company has a quick ratio of 0.23, a current ratio of 0.77 and a debt-to-equity ratio of 0.42.

Walmart (NASDAQ:WMT - Get Free Report) last issued its quarterly earnings results on Thursday, May 21st. The retailer reported $0.66 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.66. The firm had revenue of $177.75 billion for the quarter, compared to analysts' expectations of $174.84 billion. Walmart had a return on equity of 21.25% and a net margin of 3.13%.The firm's revenue for the quarter was up 7.4% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.61 EPS. Walmart has set its FY 2027 guidance at 2.750-2.850 EPS and its Q2 2027 guidance at 0.720-0.740 EPS. As a group, equities research analysts forecast that Walmart Inc. will post 2.89 EPS for the current year.

Walmart News Summary

Here are the key news stories impacting Walmart this week:

• Positive Sentiment: RBC said Walmart could gain a competitive edge through partnerships with quick-service restaurants, which could help drive more traffic, broaden customer engagement, and strengthen its ecosystem. Walmart Poised to Gain Competitive Advantage Through Quick Service Restaurant Partnerships, RBC Says
• Positive Sentiment: Walmart’s e-commerce sales rose 26% in Q1 fiscal 2027, with growth coming from store pickup, delivery, and marketplace expansion, reinforcing the view that its digital business is becoming a bigger profit driver. Walmart's E-commerce Improves 26%: Is Margin Expansion Next?
• Positive Sentiment: Walmart Connect is opening new off-site advertising opportunities, expanding a high-margin revenue stream that can lift profitability faster than traditional retail sales. Walmart (WMT) Opens New Opportunities For Advertisers Beyond Its Own Platform
• Positive Sentiment: RBC also said Walmart remains confident in its competitive positioning despite pricing pressure, suggesting it can defend share even if inflation or tariffs squeeze consumers. Walmart Confident in Competitive Positioning Amid Pricing Pressure, RBC Capital Markets Says
• Neutral Sentiment: Oppenheimer said Walmart continues to project an upbeat management tone and stay focused on value, reinforcing a steady long-term narrative rather than a major new catalyst. Walmart Maintains Upbeat Tone, Reinforces Value Strategy, Oppenheimer Says
• Neutral Sentiment: Several articles noted Walmart is attracting unusual investor attention, but these pieces were mostly commentary and screening updates rather than fresh fundamental news. Walmart Inc. (WMT) is Attracting Investor Attention: Here is What You Should Know
• Neutral Sentiment: Walmart’s increased use of AI, employee messaging around AI-related job concerns, and philanthropic disaster-response spending support the company’s strategic and brand image, but are not likely to move the stock much on their own.
• Negative Sentiment: Analysts also flagged pricing pressure and tariff-related cost uncertainty, which could weigh on margins and explain some of the recent pullback in the shares.

Insider Transactions at Walmart

In related news, EVP Christopher James Nicholas sold 2,900 shares of the business's stock in a transaction dated Thursday, May 21st. The stock was sold at an average price of $123.92, for a total value of $359,368.00. Following the transaction, the executive vice president owned 577,853 shares in the company, valued at $71,607,543.76. The trade was a 0.50% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director C Douglas Mcmillon sold 19,416 shares of the business's stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $118.63, for a total value of $2,303,320.08. Following the completion of the transaction, the director owned 4,174,579 shares in the company, valued at $495,230,306.77. This trade represents a 0.46% 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. Insiders have sold a total of 117,008 shares of company stock worth $14,492,704 over the last three months. 0.09% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

Several analysts have recently weighed in on the company. Piper Sandler reissued an "overweight" rating on shares of Walmart in a report on Monday. Sanford C. Bernstein reissued an "outperform" rating on shares of Walmart in a report on Monday. Erste Group Bank downgraded Walmart from a "buy" rating to a "hold" rating in a report on Friday. Bank of America assumed coverage on Walmart in a report on Friday, February 27th. They issued a "buy" rating and a $150.00 target price for the company. Finally, Craig Hallum set a $150.00 target price on Walmart in a report on Friday, March 6th. One analyst has rated the stock with a Strong Buy rating, thirty-one have given a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $138.85.

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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