Royal Capital Wealth Management LLC Takes Position in Walmart Inc. $WMT

Key Points

• Royal Capital Wealth Management initiated a Walmart position of 22,545 shares worth approximately $2.55 million, representing about 1.4% of its portfolio. Institutional investors collectively own 26.76% of Walmart.
• Walmart reported stronger-than-expected quarterly results, with revenue of $187.94 billion, up 5.9% year over year, and EPS of $0.81 versus the $0.74 consensus estimate. E-commerce rose 23% and advertising revenue increased 38%.
• Analysts maintain a broadly positive outlook, with a consensus “Moderate Buy” rating and $131.88 price target, although Walmart’s shares have fallen below their moving averages and trade at a relatively high P/E ratio of 37.22.

Royal Capital Wealth Management LLC bought a new position in Walmart Inc. (NASDAQ:WMT - Free Report) during the second quarter, according to its most recent disclosure with the SEC. The institutional investor bought 22,545 shares of the retailer's stock, valued at approximately $2,553,000. Walmart accounts for about 1.4% of Royal Capital Wealth Management LLC's holdings, making the stock its 17th biggest holding.

Other institutional investors also recently modified their holdings of the company. MFA Wealth Services boosted its stake in Walmart by 0.7% during the first quarter. MFA Wealth Services now owns 10,909 shares of the retailer's stock worth $1,356,000 after acquiring an additional 80 shares in the last quarter. Realta Investment Advisors increased its stake in shares of Walmart by 2.0% during the first quarter. Realta Investment Advisors now owns 4,089 shares of the retailer's stock valued at $508,000 after purchasing an additional 81 shares in the last quarter. Compton Financial Group LLC increased its stake in shares of Walmart by 4.1% during the first quarter. Compton Financial Group LLC now owns 2,081 shares of the retailer's stock valued at $259,000 after purchasing an additional 82 shares in the last quarter. Renaissance Group LLC lifted its holdings in shares of Walmart by 0.9% during the fourth quarter. Renaissance Group LLC now owns 9,636 shares of the retailer's stock valued at $1,074,000 after purchasing an additional 83 shares during the last quarter. Finally, Calton & Associates Inc. lifted its holdings in shares of Walmart by 0.3% during the fourth quarter. Calton & Associates Inc. now owns 27,220 shares of the retailer's stock valued at $3,033,000 after purchasing an additional 84 shares during the last quarter. 26.76% of the stock is currently owned by institutional investors.

Walmart News Summary

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

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on WMT. Gordon Haskett lowered Walmart from a "buy" rating to an "accumulate" rating in a research report on Thursday, August 20th. Deutsche Bank Aktiengesellschaft set a $113.00 target price on Walmart in a report on Friday, August 21st. Evercore set a $125.00 target price on Walmart in a research note on Friday, August 21st. The Goldman Sachs Group restated a "buy" rating and set a $130.00 price target on shares of Walmart in a report on Friday, August 21st. Finally, Erste Group Bank lowered Walmart from a "buy" rating to a "hold" rating in a research report on Friday, June 5th. Three 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. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $131.88.

Walmart Stock Performance

WMT opened at $103.09 on Friday. The company has a current ratio of 0.77, a quick ratio of 0.23 and a debt-to-equity ratio of 0.41. The company has a market cap of $820.40 billion, a price-to-earnings ratio of 37.22, a PEG ratio of 3.90 and a beta of 0.61. The company's 50 day moving average is $111.90 and its 200 day moving average is $120.45. Walmart Inc. has a 12-month low of $95.79 and a 12-month high of $135.15.

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

Insider Buying and Selling at Walmart

In related news, EVP Daniel J. Bartlett sold 3,710 shares of Walmart stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $113.10, for a total transaction of $419,601.00. Following the transaction, the executive vice president directly owned 626,299 shares in the company, valued at approximately $70,834,416.90. The trade was a 0.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Daniel Danker sold 50,644 shares of the business's stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $105.35, for a total value of $5,335,345.40. Following the sale, the executive vice president directly owned 201,672 shares of the company's stock, valued at $21,246,145.20. This represents a 20.07% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 77,292 shares of company stock worth $8,421,143. 0.09% of the stock is currently owned by insiders.

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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