United Super Pty Ltd in its capacity as Trustee for the Construction & Building Unions Superannuation Fund Grows Holdings in Walmart Inc. $WMT

Key Points

• United Super increased its Walmart stake by 10.4% in the second quarter, adding 39,274 shares to reach 417,265 shares valued at approximately $47.3 million. Institutional investors collectively own 26.76% of Walmart.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and an average price target of $138.50. Walmart’s latest quarter met EPS expectations at $0.66, while revenue rose 7.4% year over year to $177.75 billion.
• Walmart faces a valuation and margin test: shares trade near 40 times earnings, while price cuts and moderated same-store sales could pressure profitability. E-commerce and higher-margin advertising revenue are viewed as potential offsets.

United Super Pty Ltd in its capacity as Trustee for the Construction & Building Unions Superannuation Fund boosted its position in Walmart Inc. (NASDAQ:WMT - Free Report) by 10.4% in the second quarter, according to its most recent filing with the SEC. The institutional investor owned 417,265 shares of the retailer's stock after purchasing an additional 39,274 shares during the period. United Super Pty Ltd in its capacity as Trustee for the Construction & Building Unions Superannuation Fund's holdings in Walmart were worth $47,259,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in WMT. Entrust Financial LLC purchased a new position in shares of Walmart in the 4th quarter worth approximately $27,000. Merkkuri Wealth Advisors LLC bought a new position in shares of Walmart in the first quarter valued at approximately $29,000. Bay Harbor Wealth Management LLC increased its position in shares of Walmart by 57.4% during the fourth quarter. Bay Harbor Wealth Management LLC now owns 288 shares of the retailer's stock valued at $32,000 after acquiring an additional 105 shares during the last quarter. Sankala Group LLC purchased a new stake in shares of Walmart during the fourth quarter valued at approximately $33,000. Finally, Motiv8 Investments LLC bought a new stake in Walmart during the fourth quarter worth $34,000. Hedge funds and other institutional investors own 26.76% of the company's stock.

Analyst Ratings Changes

Several research analysts have weighed in on the company. Royal Bank Of Canada reissued an "outperform" rating and issued a $137.00 price objective on shares of Walmart in a research report on Wednesday, August 12th. Piper Sandler reaffirmed an "overweight" rating on shares of Walmart in a research report on Monday, June 8th. Mizuho set a $130.00 target price on Walmart in a research note on Monday, July 27th. Tigress Financial reissued a "buy" rating and issued a $155.00 price target (up from $150.00) on shares of Walmart in a report on Friday, May 29th. Finally, DA Davidson restated a "buy" rating and set a $150.00 price target on shares of Walmart in a research report on Monday. One equities research analyst has rated the stock with a Strong Buy rating, thirty have assigned a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $138.50.

Walmart Price Performance

Shares of NASDAQ WMT opened at $114.30 on Thursday. The company has a current ratio of 0.77, a quick ratio of 0.23 and a debt-to-equity ratio of 0.42. The stock has a fifty day simple moving average of $114.03 and a two-hundred day simple moving average of $121.49. Walmart Inc. has a 1-year low of $95.42 and a 1-year high of $135.15. The firm has a market cap of $909.61 billion, a price-to-earnings ratio of 40.11, a price-to-earnings-growth ratio of 4.31 and a beta of 0.61.

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

Key Walmart News

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

Insider Activity at Walmart

In related news, 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 sale, the executive vice president directly owned 125,067 shares in the company, valued at approximately $14,985,527.94. The trade was a 8.74% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Christopher James Nicholas sold 2,900 shares of the company'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 sale, the executive vice president directly owned 574,953 shares in the company, valued at approximately $67,953,695.07. This trade represents a 0.50% decrease in their ownership of the stock. 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 54,164 shares of company stock worth $6,389,402 in the last three months. Corporate insiders own 0.09% of the company's stock.

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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