Dearborn Partners LLC Purchases New Shares in Walmart Inc. $WMT

Key Points

• Dearborn Partners initiated a Walmart position by purchasing 200,798 shares valued at approximately $22.7 million. Institutional investors collectively own 26.76% of the company.
• Walmart exceeded quarterly expectations, reporting $0.81 in EPS versus the $0.74 consensus and $187.94 billion in revenue, up 5.9% year over year. E-commerce and advertising growth were highlighted as key expansion drivers.
• Despite the stock opening at $103.09—below its 50-day and 200-day moving averages—analysts maintain a consensus “Moderate Buy” rating with an average price target of $131.88.

Dearborn Partners LLC purchased a new position in shares of Walmart Inc. (NASDAQ:WMT - Free Report) during the 2nd quarter, according to the company in its most recent filing with the SEC. The institutional investor purchased 200,798 shares of the retailer's stock, valued at approximately $22,742,000.

A number of other hedge funds have also recently added to or reduced their stakes in WMT. Entrust Financial LLC bought a new position in shares of Walmart in the fourth quarter worth about $27,000. Merkkuri Wealth Advisors LLC bought a new stake in shares of Walmart during the first quarter valued at approximately $29,000. Bay Harbor Wealth Management LLC grew its stake in shares of Walmart by 57.4% during the fourth quarter. Bay Harbor Wealth Management LLC now owns 288 shares of the retailer's stock valued at $32,000 after purchasing an additional 105 shares during the last quarter. Sankala Group LLC acquired a new stake in shares of Walmart in the fourth quarter valued at approximately $33,000. Finally, Motiv8 Investments LLC acquired a new stake in shares of Walmart in the fourth quarter valued at approximately $34,000. Institutional investors own 26.76% of the company's stock.

Walmart Stock Performance

Shares of NASDAQ WMT opened at $103.09 on Monday. The company's 50 day simple moving average is $111.90 and its 200 day simple moving average is $120.39. Walmart Inc. has a fifty-two week low of $95.79 and a fifty-two week high of $135.15. The firm has a market capitalization of $820.40 billion, a P/E ratio of 37.22, a P/E/G ratio of 3.92 and a beta of 0.61. The company has a debt-to-equity ratio of 0.41, a current ratio of 0.77 and a quick ratio of 0.23.

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

Analyst Ratings Changes

Several research analysts have issued reports on WMT shares. Telsey Advisory Group reaffirmed an "outperform" rating and set a $130.00 price objective (down from $140.00) on shares of Walmart in a report on Friday, August 21st. Mizuho set a $130.00 target price on Walmart in a research note on Monday, July 27th. Sanford C. Bernstein reissued an "outperform" rating on shares of Walmart in a research note on Friday, August 21st. Royal Bank Of Canada dropped their target price on Walmart from $137.00 to $131.00 and set an "outperform" rating for the company in a research report on Friday, August 21st. Finally, BMO Capital Markets reaffirmed an "outperform" rating and set a $126.00 price target on shares of Walmart in a research note on Friday, August 21st. Three analysts have rated the stock with a Strong Buy rating, thirty-two have assigned a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $131.88.

More 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

Insider Buying and Selling

In related news, EVP Daniel J. Bartlett sold 3,775 shares of Walmart stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $109.64, for a total transaction of $413,891.00. Following the completion of the sale, the executive vice president directly owned 630,009 shares of the company's stock, valued at $69,074,186.76. The trade was a 0.60% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Christopher James Nicholas sold 2,900 shares of the company's stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $106.34, for a total value of $308,386.00. Following the completion of the sale, the executive vice president owned 569,153 shares of the company's stock, valued at $60,523,730.02. This represents a 0.51% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 77,292 shares of company stock worth $8,421,143. Company insiders own 0.09% of the company's stock.

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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