Mitsubishi UFJ Trust & Banking Corp Grows Holdings in Walmart Inc. $WMT

Key Points

• Mitsubishi UFJ Trust & Banking increased its Walmart stake by 2.6% in the second quarter, bringing its holdings to 2.5 million shares valued at approximately $283.2 million. Institutional investors own 26.76% of Walmart.
• Analyst sentiment remains positive, with Walmart receiving a consensus “Moderate Buy” rating and an average price target of $138.50, although some firms recently downgraded the stock to Hold or Cautious.
• Walmart’s e-commerce growth, grocery leadership and advertising business support its outlook, but investors face risks from a lofty valuation, price cuts that may pressure margins and moderating same-store sales momentum.

Mitsubishi UFJ Trust & Banking Corp grew its stake in shares of Walmart Inc. (NASDAQ:WMT - Free Report) by 2.6% during the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 2,500,162 shares of the retailer's stock after buying an additional 62,364 shares during the quarter. Walmart accounts for 0.6% of Mitsubishi UFJ Trust & Banking Corp's investment portfolio, making the stock its 26th biggest position. Mitsubishi UFJ Trust & Banking Corp's holdings in Walmart were worth $283,168,000 as of its most recent filing with the SEC.

A number of other hedge funds also recently made changes to their positions in WMT. Vanguard Group Inc. increased its stake in Walmart by 1.0% in the fourth quarter. Vanguard Group Inc. now owns 439,957,146 shares of the retailer's stock valued at $49,015,626,000 after acquiring an additional 4,304,436 shares during the last quarter. State Street Corp lifted its stake in Walmart by 1.2% during the third quarter. State Street Corp now owns 184,805,978 shares of the retailer's stock worth $19,046,104,000 after purchasing an additional 2,242,364 shares during the last quarter. Geode Capital Management LLC boosted its holdings in shares of 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 purchasing an additional 6,517,394 shares in the last quarter. Norges Bank purchased a new position in shares of Walmart in the 4th quarter worth about $6,458,529,000. Finally, Fisher Asset Management LLC increased its position in shares of Walmart by 0.8% during the 4th quarter. Fisher Asset Management LLC now owns 40,626,852 shares of the retailer's stock valued at $4,526,238,000 after purchasing an additional 328,229 shares during the last quarter. 26.76% of the stock is owned by institutional investors.

Analyst Ratings Changes

A number of brokerages recently weighed in on WMT. KeyCorp reissued an "overweight" rating on shares of Walmart in a report on Wednesday, August 12th. DA Davidson reiterated a "buy" rating and set a $150.00 price target on shares of Walmart in a research report on Monday. Morgan Stanley lifted their price target on shares of Walmart from $135.00 to $140.00 and gave the stock an "overweight" rating in a research note on Wednesday, April 22nd. Erste Group Bank lowered shares of Walmart from a "buy" rating to a "hold" rating in a report on Friday, June 5th. Finally, Oppenheimer cut shares of Walmart from a "market perform" rating to a "cautious" rating in a research note on Wednesday. One analyst has rated the stock with a Strong Buy rating, thirty have issued a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Walmart currently has an average rating of "Moderate Buy" and a consensus price target of $138.50.

Insider Buying and Selling at Walmart

In other Walmart news, EVP Latriece Watkins sold 11,000 shares of the firm's stock in a transaction on Thursday, May 28th. The shares were 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 position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Christopher James Nicholas sold 2,900 shares of the business's stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $118.19, for a total transaction of $342,751.00. Following the completion of the transaction, the executive vice president owned 574,953 shares in the company, valued at $67,953,695.07. The trade was a 0.50% 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 a total of 54,164 shares of company stock worth $6,389,402 over the last ninety days. 0.09% of the stock is owned by company insiders.

Key Stories Impacting Walmart

Here are the key news stories impacting Walmart this week:

• Positive Sentiment: Walmart enters the report with a strong earnings track record, having exceeded revenue expectations for 25 consecutive quarters. Analysts also see potential for another earnings beat, supported by e-commerce momentum and a growing contribution from Walmart Connect advertising. Walmart Q2 Preview
• Positive Sentiment: The company’s grocery leadership, expanding online business and higher-margin retail-media operations remain important long-term strengths. Advertising growth could help offset the cost of competitive pricing and faster delivery. DA Davidson also reiterated a Buy rating. Retail stagnates, ad dollars help Walmart stay the course
• Neutral Sentiment: Options traders expect a significant post-earnings move, highlighting elevated volatility and the possibility that results or guidance could materially change the stock’s near-term direction. Barchart data ahead of Walmart earnings
• Negative Sentiment: Thousands of price reductions may support customer traffic but could slow sales growth and pressure profit margins. Same-store sales momentum has moderated, increasing investor dependence on advertising and other higher-margin businesses. Walmart sales growth expected to slow
• Negative Sentiment: Several previews characterize WMT as expensive ahead of earnings, with a price-to-earnings ratio near 40 and a cautious outlook already weighing on sentiment. Investors may require a clear earnings or guidance upside to justify the valuation. Walmart valuation concern ahead of Q2 earnings
• Negative Sentiment: Walmart’s grocery advantage faces a margin test as shoppers increasingly purchase additional goods from Amazon, while elevated costs and cautious consumers could limit profitability. Walmart grocery margin test

Walmart Stock Performance

NASDAQ:WMT opened at $114.30 on Thursday. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.23 and a current ratio of 0.77. Walmart Inc. has a fifty-two week low of $95.42 and a fifty-two week high of $135.15. The firm has a market cap of $909.61 billion, a PE ratio of 40.11, a price-to-earnings-growth ratio of 4.31 and a beta of 0.61. The business has a 50 day moving average price of $114.03 and a 200-day moving average price of $121.49.

Walmart (NASDAQ:WMT - Get Free Report) last issued its earnings results on Thursday, May 21st. The retailer reported $0.66 EPS for the quarter, hitting the consensus estimate of $0.66. Walmart had a net margin of 3.13% and a return on equity of 21.25%. The company had revenue of $177.75 billion for the quarter, compared to the consensus estimate of $174.84 billion. During the same period in the previous year, the firm earned $0.61 earnings per share. The firm's revenue for the quarter was up 7.4% on a year-over-year basis. Equities research analysts predict that Walmart Inc. will post 2.88 earnings per share for the current year.

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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