Palisade Capital Management LP Acquires Shares of 23,663 Walmart Inc. $WMT

Key Points

• Palisade Capital Management acquired 23,663 Walmart shares in the second quarter, valued at approximately $2.68 million. Institutional investors collectively own 26.76% of Walmart.
• Walmart reported strong fiscal second-quarter results, with revenue rising 5.9% year over year to $187.94 billion and EPS of $0.81, exceeding analyst expectations. E-commerce grew 23% and advertising revenue increased 38%.
• Despite a “Moderate Buy” consensus rating and a $131.88 average price target, shares recently traded near $103, below their 50-day and 200-day moving averages. Investors remain focused on valuation concerns, slower core sales growth and a cautious consumer environment.

Palisade Capital Management LP acquired a new stake in Walmart Inc. (NASDAQ:WMT - Free Report) in the second quarter, according to its most recent filing with the SEC. The fund acquired 23,663 shares of the retailer's stock, valued at approximately $2,680,000.

Several other hedge funds and other institutional investors have also recently modified their holdings of the stock. State Street Corp increased its holdings in shares of Walmart by 1.2% in 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 period. Geode Capital Management LLC lifted its position 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 last quarter. Norges Bank bought a new stake in shares of Walmart in the 4th quarter worth approximately $6,458,529,000. Fisher Asset Management LLC boosted its position in Walmart by 0.8% during 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 buying an additional 328,229 shares during the period. Finally, Franklin Resources Inc. boosted its holdings in Walmart by 2.6% during the 4th quarter. Franklin Resources Inc. now owns 36,820,550 shares of the retailer's stock valued at $4,102,546,000 after acquiring an additional 920,969 shares during the period. 26.76% of the stock is currently owned by institutional investors.

Walmart News Roundup

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

Walmart Trading Up 0.4%

Shares of Walmart stock opened at $103.09 on Friday. The company's fifty day simple moving average is $111.90 and its 200-day simple moving average is $120.45. The company has a debt-to-equity ratio of 0.41, a current ratio of 0.77 and a quick ratio of 0.23. Walmart Inc. has a 1-year low of $95.79 and a 1-year high of $135.15. The stock has a market capitalization of $820.40 billion, a PE ratio of 37.22, a P/E/G ratio of 3.90 and a beta of 0.61.

Walmart (NASDAQ:WMT - Get Free Report) last posted its quarterly earnings data on Thursday, August 20th. The retailer reported $0.81 earnings per share for the quarter, beating analysts' consensus estimates of $0.74 by $0.07. The firm had revenue of $187.94 billion for the quarter, compared to analysts' expectations of $186.64 billion. Walmart had a return on equity of 21.83% and a net margin of 3.00%.The business's quarterly revenue was up 5.9% on a year-over-year basis. During the same period in the previous year, the firm earned $0.68 EPS. Walmart has set its Q3 2027 guidance at 0.620-0.640 EPS and its FY 2027 guidance at 2.800-2.870 EPS. As a group, equities analysts anticipate that Walmart Inc. will post 2.87 earnings per share for the current year.

Insiders Place Their Bets

In other Walmart news, EVP Christopher James Nicholas sold 2,900 shares of the business's stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $106.34, for a total value of $308,386.00. Following the sale, the executive vice president owned 569,153 shares in the company, valued at $60,523,730.02. The trade was a 0.51% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP David W. Guggina sold 11,978 shares of the business's stock in a transaction dated 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 owned 125,067 shares in the company, valued at $14,985,527.94. This represents a 8.74% 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. Over the last three months, insiders have sold 77,292 shares of company stock worth $8,421,143. Company insiders own 0.09% of the company's stock.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on WMT. KeyCorp reissued an "overweight" rating on shares of Walmart in a research report on Wednesday, August 12th. Freedom Capital raised Walmart from a "hold" rating to a "strong-buy" rating in a research note on Thursday, August 20th. Erste Group Bank cut Walmart from a "buy" rating to a "hold" rating in a research report on Friday, June 5th. Wells Fargo & Company reduced 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, Tigress Financial restated a "buy" rating and issued a $155.00 price target (up from $150.00) on shares of Walmart in a research note on Friday, May 29th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $131.88.

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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