Jennison Associates LLC Sells 1,410,137 Shares of Walmart Inc. $WMT

Key Points

• Jennison Associates cut its Walmart stake by 7.1%, selling 1.41 million shares and retaining 18.54 million shares worth approximately $2.1 billion. Institutional investors collectively own 26.76% of Walmart.
• Walmart’s e-commerce business remains a major growth driver, while potential tariff refunds could support lower prices and market-share gains. However, elevated fuel costs, rising expenses and competition from Amazon pose risks.
• Walmart is scheduled to report second-quarter results before the market opens on August 20. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $138.56, despite expectations for potentially weaker comparable-sales growth.

Jennison Associates LLC lessened its stake in Walmart Inc. (NASDAQ:WMT - Free Report) by 7.1% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 18,541,042 shares of the retailer's stock after selling 1,410,137 shares during the period. Walmart accounts for about 1.3% of Jennison Associates LLC's portfolio, making the stock its 17th largest position. Jennison Associates LLC owned 0.23% of Walmart worth $2,099,958,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the stock. Merkkuri Wealth Advisors LLC bought a new position in Walmart in the 1st quarter worth about $29,000. Entrust Financial LLC bought a new stake in shares of Walmart during the fourth quarter valued at approximately $27,000. Bay Harbor Wealth Management LLC raised 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 acquiring an additional 105 shares in the last quarter. Sankala Group LLC purchased a new stake in shares of Walmart in the fourth quarter valued at approximately $33,000. Finally, Turim 21 Investimentos Ltda. purchased a new stake in shares of Walmart in the first quarter valued at approximately $37,000. Institutional investors own 26.76% of the company's stock.

Walmart News Roundup

Here are the key news stories impacting Walmart this week:

• Positive Sentiment: Walmart’s e-commerce business continues to be viewed as a significant growth engine, with its digital capabilities increasingly resembling a broader commerce platform rather than a traditional big-box retailer. Walmart’s E-Commerce Engine Roars
• Positive Sentiment: Jefferies said potential tariff refunds could support Walmart’s price-leadership strategy. Reinvesting the money in lower prices could widen its price gap with competitors and help drive market-share gains, particularly in consumables. Walmart set for in-line Q2
• Positive Sentiment: Royal Bank of Canada reaffirmed an “Outperform” rating, providing some support for the long-term investment case despite near-term sales concerns. RBC Reaffirms Outperform Rating
• Neutral Sentiment: Walmart is expected to deliver largely in-line second-quarter results. The key catalysts are management’s second-half outlook, tariff-refund treatment and the potential effect on pricing and margins. Walmart Q2 earnings preview
• Neutral Sentiment: The company will release results before the market opens on August 20 and host a conference call with CEO John Furner and CFO John David Rainey. Walmart to Host Second Quarter Earnings Conference Call
• Negative Sentiment: Deutsche Bank expects Walmart to miss second-quarter comparable-sales estimates, while high gasoline prices are pressuring household budgets and raising the retailer’s operating costs. Walmart Seen Missing Comparable Sales Estimates
• Negative Sentiment: Analysts have cited elevated fuel costs, rising expenses and valuation concerns as reasons for Walmart’s recent weakness, despite solid revenue growth and e-commerce momentum. Walmart Stock Slides About 12% in 3 Months
• Negative Sentiment: Amazon’s AI-powered Alexa shopping tools could intensify competition for grocery-list creation and digital shopping relationships, areas strategically important to Walmart’s e-commerce growth. Amazon’s Alexa Shopping Strategy

Walmart Stock Performance

Shares of WMT stock opened at $115.27 on Friday. The firm has a market cap of $917.33 billion, a price-to-earnings ratio of 40.45, a PEG ratio of 4.32 and a beta of 0.61. Walmart Inc. has a 52-week low of $95.42 and a 52-week high of $135.15. The company has a quick ratio of 0.23, a current ratio of 0.77 and a debt-to-equity ratio of 0.42. The company's 50 day moving average is $114.34 and its 200 day moving average is $121.52.

Walmart (NASDAQ:WMT - Get Free Report) last posted its earnings results on Thursday, May 21st. The retailer reported $0.66 earnings per share for the quarter, hitting analysts' consensus estimates of $0.66. The company had revenue of $177.75 billion during 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%.Walmart's revenue was up 7.4% on a year-over-year basis. During the same quarter in the prior year, the business 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. On average, sell-side analysts anticipate that Walmart Inc. will post 2.88 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director C Douglas Mcmillon sold 19,416 shares of the business's stock in a transaction on Thursday, May 28th. The stock was 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 directly owned 4,174,579 shares of the company's stock, valued at approximately $495,230,306.77. The trade was a 0.46% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Latriece Watkins sold 11,000 shares of the company's stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $118.97, for a total value of $1,308,670.00. Following the sale, the executive vice president owned 120,203 shares of the company's stock, valued at $14,300,550.91. This trade represents a 8.38% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 70,189 shares of company stock worth $8,377,320. Insiders own 0.09% of the company's stock.

Wall Street Analyst Weigh In

WMT has been the topic of several research reports. Evercore restated an "outperform" rating on shares of Walmart in a report on Monday, May 18th. TD Cowen reiterated a "buy" rating and issued a $150.00 target price (up from $145.00) on shares of Walmart in a report on Thursday, May 7th. BMO Capital Markets reissued an "outperform" rating on shares of Walmart in a research report on Friday, May 22nd. KeyCorp restated an "overweight" rating on shares of Walmart in a research note on Wednesday. Finally, Piper Sandler restated an "overweight" rating on shares of Walmart in a report on Monday, June 8th. One investment analyst has rated the stock with a Strong Buy rating, thirty have issued a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $138.56.

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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