North Star Asset Management Inc. Invests $1.80 Million in Walmart Inc. $WMT

Key Points

• North Star Asset Management initiated a Walmart position worth approximately $1.80 million by purchasing 15,926 shares in the second quarter. Institutional investors collectively own 26.76% of the company.
• Walmart reported quarterly EPS of $0.81, beating estimates by $0.07, while revenue rose 5.9% year over year to $187.94 billion. U.S. marketplace sales also increased 52%, supporting the company’s e-commerce growth.
• Analysts remain broadly positive, with Walmart receiving a “Moderate Buy” consensus rating and an average price target of $131.88, despite recent estimate reductions and shares trading at $104.87.

North Star Asset Management Inc. bought a new stake in shares of Walmart Inc. (NASDAQ:WMT - Free Report) in the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund bought 15,926 shares of the retailer's stock, valued at approximately $1,804,000.

A number of other hedge funds have also recently made changes to their positions in the stock. State Street Corp grew its stake in Walmart by 1.2% in the 3rd quarter. State Street Corp now owns 184,805,978 shares of the retailer's stock worth $19,046,104,000 after acquiring an additional 2,242,364 shares in the last quarter. Geode Capital Management LLC raised its stake in shares of Walmart by 6.8% during the fourth quarter. Geode Capital Management LLC now owns 103,010,709 shares of the retailer's stock valued at $11,426,753,000 after acquiring an additional 6,517,394 shares in the last quarter. Bank of America Corp DE bought a new stake in shares of Walmart during the second quarter valued at approximately $7,455,131,000. Norges Bank purchased a new stake in shares of Walmart in the fourth quarter valued at approximately $6,458,529,000. Finally, Fisher Asset Management LLC boosted its holdings in shares of Walmart by 0.8% in the fourth 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 period. 26.76% of the stock is currently owned by institutional investors.

Key Walmart News

Here are the key news stories impacting Walmart this week:

• Positive Sentiment: Walmart agreed to pay $50 million to settle U.S. Justice Department allegations involving improperly filled opioid prescriptions. Although the settlement carries a financial cost and reputational risk, it is viewed favorably because it resolves litigation that had exposed the company to potentially billions of dollars in civil penalties. Walmart described the payment as immaterial. Walmart escapes major legal penalty for a fraction of the cost
• Positive Sentiment: Walmart’s U.S. marketplace sales increased 52%, supported by a broader product selection, greater use of fulfillment services and international expansion in Mexico and Canada. Sustaining this momentum could improve e-commerce growth and marketplace profitability. Walmart's Marketplace Momentum Builds
• Positive Sentiment: Tigress Financial reaffirmed its buy rating and set a $155 price target, implying substantial upside from recent trading levels. This reflects confidence in Walmart’s long-term earnings and growth prospects. Benzinga analyst rating
• Neutral Sentiment: Commentary highlights Walmart’s 53-year record of dividend increases and notes that the stock is well below its peak. However, its dividend yield remains relatively low and its valuation is still elevated compared with the broader market. Walmart dividend analysis
• Negative Sentiment: Erste Group Bank lowered its fiscal 2027 EPS estimates, signaling expectations for slower earnings growth or increased cost pressure. Walmart’s recent earnings-related share-price weakness also indicates that investors remain sensitive to the company’s premium valuation. FY2027 EPS Estimates for Walmart Cut

Insider Activity

In related news, EVP David W. Guggina sold 11,978 shares of the stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $119.82, for a total transaction of $1,435,203.96. Following the completion of the sale, the executive vice president owned 125,067 shares of the company's stock, valued at $14,985,527.94. This represents a 8.74% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Christopher James Nicholas sold 2,900 shares of the firm's stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $106.34, for a total transaction of $308,386.00. Following the completion of the sale, the executive vice president owned 569,153 shares of the company's stock, valued at approximately $60,523,730.02. This trade represents a 0.51% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 77,292 shares of company stock worth $8,421,143. Insiders own 0.09% of the company's stock.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on WMT. Cantor Fitzgerald raised Walmart to a "buy" rating in a research report on Friday, August 21st. Mizuho set a $130.00 price target on Walmart in a research note on Monday, July 27th. KeyCorp restated an "overweight" rating on shares of Walmart in a report on Wednesday, August 12th. Wells Fargo & Company lowered their price objective on shares of Walmart from $140.00 to $120.00 and set an "overweight" rating for the company in a research note on Friday, August 21st. Finally, Freedom Broker upgraded shares of Walmart from a "hold" rating to a "strong-buy" rating in a report on Thursday, August 20th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-two have given a Buy rating and four have assigned 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 $131.88.

Walmart Price Performance

Shares of WMT stock opened at $104.87 on Tuesday. The stock's 50-day moving average is $111.65 and its 200 day moving average is $120.24. Walmart Inc. has a 1-year low of $95.79 and a 1-year high of $135.15. 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 market cap of $834.56 billion, a P/E ratio of 37.86, a PEG ratio of 3.92 and a beta of 0.61.

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

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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