Legato Capital Management LLC Has $1.66 Million Position in Walmart Inc. $WMT

Key Points

• Legato Capital Management cut its Walmart stake by 56.8% in the fourth quarter, selling 19,644 shares and ending with 14,917 shares valued at about $1.66 million.
• Walmart reported strong quarterly results, with $177.75 billion in revenue and EPS of $0.66, matching analyst expectations and topping revenue estimates. The company also said revenue rose 7.4% year over year.
• Analysts remain broadly positive on Walmart, with several firms maintaining or raising price targets and the stock holding a Moderate Buy consensus rating with an average target of $138.71.

Legato Capital Management LLC lowered its stake in shares of Walmart Inc. (NASDAQ:WMT - Free Report) by 56.8% during the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 14,917 shares of the retailer's stock after selling 19,644 shares during the quarter. Legato Capital Management LLC's holdings in Walmart were worth $1,662,000 at the end of the most recent reporting period.

A number of other large investors have also added to or reduced their stakes in WMT. Collier Financial bought a new stake in Walmart during the third quarter worth $25,000. Entrust Financial LLC bought a new stake in Walmart during the fourth quarter worth $27,000. Your Advocates Ltd. LLP bought a new stake in Walmart during the third quarter worth $28,000. Redmont Wealth Advisors LLC bought a new stake in Walmart during the third quarter worth $30,000. Finally, Beacon Financial Strategies CORP bought a new stake in Walmart during the fourth quarter worth $30,000. Institutional investors and hedge funds own 26.76% of the company's stock.

Walmart Stock Down 0.9%

Shares of NASDAQ:WMT opened at $120.27 on Friday. The firm has a market cap of $958.67 billion, a P/E ratio of 42.20, a P/E/G ratio of 4.45 and a beta of 0.65. The company has a quick ratio of 0.24, a current ratio of 0.77 and a debt-to-equity ratio of 0.42. Walmart Inc. has a 12-month low of $93.43 and a 12-month high of $135.15. The business has a fifty day simple moving average of $126.77 and a 200 day simple moving average of $120.03.

Walmart (NASDAQ:WMT - Get Free Report) last announced its earnings results on Thursday, May 21st. The retailer reported $0.66 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.66. The business 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 for the quarter was up 7.4% compared to the same quarter last year. During the same period last year, the company earned $0.61 EPS. Walmart has set its FY 2027 guidance at 2.750-2.850 EPS and its Q2 2027 guidance at 0.720-0.740 EPS. Analysts predict that Walmart Inc. will post 2.89 earnings per share for the current year.

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.

Analysts Set New Price Targets

Several research firms have weighed in on WMT. BTIG Research restated a "buy" rating and set a $145.00 target price on shares of Walmart in a research note on Friday. Morgan Stanley increased their price target on Walmart from $135.00 to $140.00 and gave the company an "overweight" rating in a research note on Wednesday, April 22nd. Freedom Capital upgraded Walmart from a "strong sell" rating to a "hold" rating in a research note on Thursday. Roth Mkm reiterated a "buy" rating and issued a $138.00 price target on shares of Walmart in a research note on Friday, February 20th. Finally, Guggenheim increased their price target on Walmart from $120.00 to $137.00 and gave the company a "buy" rating in a research note on Monday, April 13th. Two 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. Based on data from MarketBeat.com, Walmart presently has an average rating of "Moderate Buy" and an average price target of $138.71.

Insider Activity

In other Walmart news, CEO John R. Furner sold 13,125 shares of the stock in a transaction dated Thursday, May 21st. The stock was sold at an average price of $124.08, for a total transaction of $1,628,550.00. Following the completion of the sale, the chief executive officer directly owned 661,037 shares in the company, valued at approximately $82,021,470.96. This trade represents a 1.95% decrease in their position. The sale 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 Daniel J. Bartlett sold 1,250 shares of the stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $133.77, for a total value of $167,212.50. Following the sale, the executive vice president owned 635,593 shares of the company's stock, valued at approximately $85,023,275.61. The trade was a 0.20% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 126,008 shares of company stock worth $15,896,715. 0.10% of the stock is owned by insiders.

Walmart Company 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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