Lathrop Investment Management Co. Has $27.82 Million Stock Holdings in Walmart Inc. $WMT

Key Points

• Lathrop Investment Management trimmed its Walmart stake by 3.5% in the fourth quarter, but it still held 249,700 shares worth about $27.82 million, making Walmart its largest portfolio position.
• Walmart’s latest quarter showed solid operating results, with revenue of $177.75 billion and EPS of $0.66 meeting expectations, while e-commerce sales and advertising revenue continued to grow strongly.
• Despite the strong quarter, the stock faced pressure after Walmart issued Q2 EPS guidance below consensus and reaffirmed full-year targets that also came in under Wall Street expectations, raising concerns about margin pressure.

Lathrop Investment Management Co. reduced its stake in Walmart Inc. (NASDAQ:WMT - Free Report) by 3.5% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 249,700 shares of the retailer's stock after selling 9,036 shares during the period. Walmart accounts for 5.0% of Lathrop Investment Management Co.'s portfolio, making the stock its largest position. Lathrop Investment Management Co.'s holdings in Walmart were worth $27,819,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors also recently bought and sold shares of the stock. Summit Asset Management LLC raised its stake in Walmart by 0.3% in the fourth quarter. Summit Asset Management LLC now owns 47,660 shares of the retailer's stock worth $5,310,000 after buying an additional 141 shares in the last quarter. Frazier Financial Advisors LLC raised its stake in Walmart by 4.1% in the fourth quarter. Frazier Financial Advisors LLC now owns 2,362 shares of the retailer's stock worth $263,000 after buying an additional 93 shares in the last quarter. North Star Asset Management Inc. raised its stake in Walmart by 8.0% in the fourth quarter. North Star Asset Management Inc. now owns 14,942 shares of the retailer's stock worth $1,665,000 after buying an additional 1,105 shares in the last quarter. Accent Capital Management LLC increased its stake in shares of Walmart by 3.4% during the fourth quarter. Accent Capital Management LLC now owns 21,516 shares of the retailer's stock valued at $2,402,000 after purchasing an additional 700 shares in the last quarter. Finally, Catalyst Funds Management Pty Ltd bought a new position in shares of Walmart during the fourth quarter valued at approximately $14,840,000. 26.76% of the stock is owned by institutional investors.

Trending Headlines about Walmart

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.

Insider Activity

In other news, EVP Daniel J. Bartlett sold 1,250 shares of the stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $133.77, for a total transaction of $167,212.50. Following the sale, the executive vice president owned 635,593 shares in the company, valued at $85,023,275.61. This represents a 0.20% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP John D. Rainey sold 20,000 shares of the stock in a transaction that occurred on Monday, March 2nd. The shares were sold at an average price of $127.79, for a total transaction of $2,555,800.00. Following the sale, the executive vice president owned 486,764 shares in the company, valued at approximately $62,203,571.56. The trade was a 3.95% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 126,008 shares of company stock valued at $15,896,715. Company insiders own 0.10% of the company's stock.

Walmart Trading Down 0.9%

NASDAQ:WMT opened at $120.27 on Friday. The company's 50 day moving average price is $126.77 and its 200-day moving average price is $120.03. Walmart Inc. has a 52 week low of $93.43 and a 52 week high of $135.15. The company has a quick ratio of 0.24, a current ratio of 0.77 and a debt-to-equity ratio of 0.42. The stock has a market cap of $958.67 billion, a price-to-earnings ratio of 42.20, a PEG ratio of 4.45 and a beta of 0.65.

Walmart (NASDAQ:WMT - Get Free Report) last posted its quarterly earnings results on Thursday, May 21st. The retailer reported $0.66 EPS for the quarter, meeting analysts' consensus estimates of $0.66. Walmart had a net margin of 3.13% and a return on equity of 21.25%. The firm had revenue of $177.75 billion for the quarter, compared to analysts' expectations of $174.84 billion. During the same quarter in the prior year, the company posted $0.61 earnings per share. The business's revenue for the quarter was up 7.4% on a year-over-year basis. 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, equities research analysts forecast that Walmart Inc. will post 2.89 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

WMT has been the subject of a number of analyst reports. Rothschild & Co Redburn set a $150.00 target price on shares of Walmart in a research note on Tuesday, February 17th. Mizuho raised their target price on shares of Walmart from $125.00 to $137.00 and gave the company an "outperform" rating in a research note on Monday, February 9th. Oppenheimer reaffirmed an "outperform" rating and set a $140.00 target price (up from $125.00) on shares of Walmart in a research note on Monday, February 9th. Freedom Capital raised shares of Walmart from a "strong sell" rating to a "hold" rating in a research note on Thursday. Finally, Raymond James Financial reaffirmed an "outperform" rating and set a $135.00 target price on shares of Walmart in a research note on Friday, March 6th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, Walmart presently has an average rating of "Moderate Buy" and a consensus price target of $138.71.

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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