Cumberland Partners Ltd Trims Stake in Walmart Inc. $WMT

Key Points

• Cumberland Partners Ltd trimmed its Walmart stake by 3.6% in the fourth quarter, but Walmart still ranked as its third-largest holding and made up about 4.1% of the portfolio.
• Walmart reported solid first-quarter results with revenue of $177.8 billion and EPS of $0.66, while e-commerce sales rose 26% and advertising revenue climbed 37%.
• Despite the strong quarter, Walmart’s second-quarter EPS guidance came in below expectations, and management said elevated fuel costs are pressuring consumers and margins.

Cumberland Partners Ltd cut its position in shares of Walmart Inc. (NASDAQ:WMT - Free Report) by 3.6% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 599,541 shares of the retailer's stock after selling 22,233 shares during the quarter. Walmart accounts for about 4.1% of Cumberland Partners Ltd's investment portfolio, making the stock its 3rd largest holding. Cumberland Partners Ltd's holdings in Walmart were worth $66,795,000 at the end of the most recent quarter.

Several other large investors have also recently added to or reduced their stakes in WMT. Collier Financial acquired a new stake in Walmart in the third quarter worth $25,000. Entrust Financial LLC acquired a new stake in Walmart in the fourth quarter worth $27,000. Your Advocates Ltd. LLP acquired a new stake in Walmart in the third quarter worth $28,000. Redmont Wealth Advisors LLC acquired a new stake in Walmart in the third quarter worth $30,000. Finally, Beacon Financial Strategies CORP acquired a new stake in Walmart in the fourth quarter worth $30,000. 26.76% of the stock is currently owned by institutional investors.

Walmart News Summary

Here are the key news stories impacting Walmart this week:

• Positive Sentiment: Walmart posted solid first-quarter results, with revenue of $177.8 billion and EPS of $0.66, while e-commerce sales rose 26% and advertising revenue jumped 37%, highlighting continued strength in digital and membership-driven businesses.
• Positive Sentiment: Several analysts remained constructive after earnings: Bank of America reiterated a Buy rating and said Walmart is well positioned to gain share in a price-sensitive environment, while BTIG and BNP Paribas Exane also kept positive ratings despite modestly trimming price targets.
• Neutral Sentiment: Walmart disclosed pre-arranged insider sales by CEO John Furner and EVP Christopher James Nicholas, but both transactions were made under 10b5-1 plans, which typically limits how much investors read into them.
• Neutral Sentiment: News reports also noted leadership changes, including the departure of Sam’s Club COO Tom Ward and U.S. stores EVP Cedric Clark, adding some uncertainty but not appearing to change the company’s near-term operating outlook.
• Negative Sentiment: Shares weakened after Walmart issued second-quarter EPS guidance below consensus and reaffirmed full-year targets that also came in below Wall Street expectations, prompting concerns that margin pressure could continue.
• Negative Sentiment: Management said elevated fuel prices are pressuring both consumers and Walmart’s own costs, reinforcing worries that spending could soften and profitability could stay under pressure in the coming quarters.

Walmart Price Performance

Shares of WMT opened at $120.27 on Friday. The firm has a market capitalization of $958.67 billion, a price-to-earnings ratio of 42.20, a price-to-earnings-growth ratio of 4.49 and a beta of 0.65. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.24 and a current ratio of 0.77. Walmart Inc. has a one year low of $93.43 and a one year high of $135.15. The stock's fifty day moving average is $126.77 and its 200-day moving average is $120.03.

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

Wall Street Analysts Forecast Growth

WMT has been the topic of several analyst reports. Telsey Advisory Group increased their target price on Walmart from $135.00 to $140.00 and gave the stock an "outperform" rating in a research report on Friday, February 20th. BNP Paribas Exane dropped their target price on Walmart from $147.00 to $146.00 and set an "outperform" rating on the stock in a research report on Friday. Piper Sandler reaffirmed an "overweight" rating and issued a $137.00 target price (up from $130.00) on shares of Walmart in a research report on Friday, May 15th. Morgan Stanley increased their target price on Walmart from $135.00 to $140.00 and gave the stock an "overweight" rating in a research report on Wednesday, April 22nd. Finally, Erste Group Bank raised Walmart from a "hold" rating to a "strong-buy" rating in a research report on Thursday, April 2nd. Two investment analysts have rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Buy" and an average price target of $138.71.

Insider Activity at Walmart

In other news, EVP Daniel J. Bartlett sold 1,335 shares of the firm's stock in a transaction on Wednesday, April 15th. The stock was sold at an average price of $124.63, for a total transaction of $166,381.05. Following the transaction, the executive vice president directly owned 636,843 shares of the company's stock, valued at approximately $79,369,743.09. This trade represents a 0.21% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through 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 firm's stock in a transaction on Thursday, April 23rd. The shares were sold at an average price of $132.21, for a total value of $2,566,989.36. Following the transaction, the director directly owned 4,193,995 shares in the company, valued at $554,488,078.95. This trade represents a 0.46% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 126,008 shares of company stock valued at $15,896,715. 0.10% of the stock is owned by corporate insiders.

Walmart Profile

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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