Kinloch Capital LLC Purchases Shares of 30,994 Walmart Inc. $WMT

Key Points

• Kinloch Capital initiated a Walmart position by purchasing 30,994 shares valued at approximately $3.51 million. Other major institutions also increased or initiated holdings, with institutional investors collectively owning 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 revenue growth provided additional momentum.
• Despite recent price-target reductions, analysts maintain a generally positive view, with Walmart receiving a “Moderate Buy” consensus rating and an average target of $131.88 versus a recent share price of $103.09.

Kinloch Capital LLC purchased a new position in Walmart Inc. (NASDAQ:WMT - Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm purchased 30,994 shares of the retailer's stock, valued at approximately $3,510,000.

Other hedge funds have also recently modified their holdings of the company. Norges Bank purchased a new stake in shares of Walmart during the fourth quarter worth about $6,458,529,000. Legal & General Group Plc purchased a new position in Walmart during the 2nd quarter valued at about $2,905,655,000. AQR Capital Management LLC raised its position in Walmart by 188.1% during the 3rd quarter. AQR Capital Management LLC now owns 11,663,172 shares of the retailer's stock valued at $1,199,907,000 after purchasing an additional 7,614,172 shares during the last quarter. Deutsche Bank AG raised its position in Walmart by 54.0% during the 2nd quarter. Deutsche Bank AG now owns 18,607,297 shares of the retailer's stock valued at $2,107,462,000 after purchasing an additional 6,525,224 shares during the last quarter. Finally, Geode Capital Management LLC lifted its holdings in Walmart by 6.8% in 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 period. Hedge funds and other institutional investors own 26.76% of the company's stock.

Walmart Price Performance

WMT stock opened at $103.09 on Friday. The company has a debt-to-equity ratio of 0.41, a quick ratio of 0.23 and a current ratio of 0.77. The firm has a market capitalization of $820.40 billion, a price-to-earnings ratio of 37.22, a PEG ratio of 3.90 and a beta of 0.61. The firm has a 50 day moving average price of $111.90 and a 200-day moving average price of $120.45. Walmart Inc. has a 52-week low of $95.79 and a 52-week high of $135.15.

Walmart (NASDAQ:WMT - Get Free Report) last issued its earnings results on Thursday, August 20th. The retailer reported $0.81 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.74 by $0.07. The business had revenue of $187.94 billion during the quarter, compared to analysts' expectations of $186.64 billion. Walmart had a net margin of 3.00% and a return on equity of 21.83%. The business's revenue for the quarter was up 5.9% compared to the same quarter last year. During the same period in the previous year, the company earned $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. Equities research analysts forecast that Walmart Inc. will post 2.87 EPS for the current fiscal year.

Wall Street Analyst Weigh In

WMT has been the topic of a number of recent analyst reports. Truist Financial set a $114.00 price objective on Walmart and gave the stock a "buy" rating in a research report on Friday, August 21st. Robert W. Baird decreased their target price on Walmart from $140.00 to $120.00 and set an "outperform" rating for the company in a report on Friday, August 21st. BNP Paribas Exane reaffirmed an "outperform" rating and issued a $137.00 price target (down from $146.00) on shares of Walmart in a research note on Friday, August 21st. Mizuho set a $130.00 price target on shares of Walmart in a report on Monday, July 27th. Finally, JPMorgan Chase & Co. reduced their price objective on shares of Walmart from $137.00 to $125.00 and set an "overweight" rating on the stock in a research report on Friday, August 21st. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-two have assigned a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, Walmart has an average rating of "Moderate Buy" and an average 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

Insiders Place Their Bets

In other Walmart news, EVP Daniel Danker sold 50,644 shares of the stock in a transaction on Wednesday, August 26th. The stock was sold at an average price of $105.35, for a total transaction 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. This trade represents a 20.07% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 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 David W. Guggina sold 11,978 shares of Walmart stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $119.82, for a total value of $1,435,203.96. Following the completion of the sale, the executive vice president directly owned 125,067 shares of the company's stock, valued at approximately $14,985,527.94. The trade was a 8.74% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 77,292 shares of company stock valued at $8,421,143. Insiders own 0.09% of the company's stock.

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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