Junto Capital Management LP Acquires 919,346 Shares of Walmart Inc. $WMT

Key Points

• Junto Capital Management increased its Walmart stake by 162% in the second quarter, adding 919,346 shares to reach 1.49 million shares valued at approximately $168.4 million.
• Analysts maintain a generally positive outlook, with Walmart holding a consensus “Moderate Buy” rating and an average price target of $131.88, although several firms recently lowered their targets.
• Walmart exceeded quarterly expectations, reporting $0.81 in adjusted EPS and $187.94 billion in revenue, up 5.9% year over year. Meanwhile, insiders sold $7.4 million worth of shares over the past quarter, primarily through pre-arranged trading plans.

Junto Capital Management LP raised its holdings in shares of Walmart Inc. (NASDAQ:WMT - Free Report) by 162.0% in the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 1,486,891 shares of the retailer's stock after buying an additional 919,346 shares during the quarter. Walmart comprises about 3.0% of Junto Capital Management LP's portfolio, making the stock its 2nd biggest holding. Junto Capital Management LP's holdings in Walmart were worth $168,405,000 at the end of the most recent quarter.

A number of other hedge funds have also modified their holdings of WMT. Entrust Financial LLC acquired a new stake in Walmart in the 4th quarter valued at about $27,000. Merkkuri Wealth Advisors LLC purchased a new position in Walmart in the 1st quarter worth approximately $29,000. Montgomery Financial Services LLC acquired a new position in shares of Walmart during the 2nd quarter worth approximately $32,000. Sankala Group LLC acquired a new position in shares of Walmart during the 4th quarter worth approximately $33,000. Finally, Motiv8 Investments LLC purchased a new stake in shares of Walmart in the fourth quarter valued at approximately $34,000. 26.76% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

WMT has been the subject of several recent research reports. Oppenheimer reaffirmed a "market perform" rating on shares of Walmart in a report on Tuesday, August 25th. Piper Sandler reissued an "overweight" rating and set a $128.00 price objective (down from $137.00) on shares of Walmart in a research note on Friday, August 21st. Morgan Stanley restated an "overweight" rating and issued a $125.00 target price (down from $140.00) on shares of Walmart in a report on Friday, August 21st. BNP Paribas Exane reaffirmed an "outperform" rating and issued a $137.00 target price (down from $146.00) on shares of Walmart in a research note on Friday, August 21st. Finally, Erste Group Bank lowered Walmart from a "buy" rating to a "hold" rating in a report on Friday, June 5th. Three research 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 company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $131.88.

Insider Buying and Selling at Walmart

In related news, EVP Daniel Danker sold 50,644 shares of the business's stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $105.35, for a total value of $5,335,345.40. Following the sale, the executive vice president directly owned 201,672 shares in the company, valued at approximately $21,246,145.20. The trade was a 20.07% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP Daniel J. Bartlett sold 3,950 shares of the company's stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $105.14, for a total transaction of $415,303.00. Following the completion of the transaction, the executive vice president directly owned 622,349 shares in the company, valued at $65,433,773.86. The trade was a 0.63% 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. Insiders have sold 69,264 shares of company stock worth $7,401,242 over the last quarter. 0.09% of the stock is currently owned by company insiders.

Walmart Stock Down 0.2%

Shares of NASDAQ WMT opened at $105.83 on Thursday. The company has a market capitalization of $839.63 billion, a P/E ratio of 38.21, a P/E/G ratio of 4.05 and a beta of 0.59. The company has a debt-to-equity ratio of 0.41, a current ratio of 0.77 and a quick ratio of 0.23. The company has a 50 day simple moving average of $110.45 and a 200-day simple moving average of $119.08. Walmart Inc. has a 1 year low of $98.88 and a 1 year high of $135.15.

Walmart (NASDAQ:WMT - Get Free Report) last released its quarterly earnings data on Thursday, August 20th. The retailer reported $0.81 EPS for the quarter, beating analysts' consensus estimates of $0.74 by $0.07. The firm had revenue of $187.94 billion for the quarter, compared to analysts' expectations of $186.64 billion. Walmart had a return on equity of 21.83% and a net margin of 3.00%.The firm's quarterly revenue was up 5.9% on a year-over-year basis. During the same period in the prior year, the firm posted $0.68 earnings per share. 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, equities research analysts predict that Walmart Inc. will post 2.87 earnings per share for the current year.

Walmart Company Profile

Walmart Inc is a multinational retail and technology company that operates supercenters, discount stores, neighborhood markets, e-commerce platforms and membership warehouse clubs. Its merchandise includes groceries, apparel, electronics, home goods, health and beauty products, general merchandise and other consumer products.

Founded by Sam Walton in 1962 and incorporated in 1969, Walmart is headquartered in Bentonville, Arkansas. The company serves customers through operations in the United States and international markets, including Mexico, Canada, China, India and several countries in Central America and Africa.

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