Veratis Advisors Inc. Buys New Stake in Walmart Inc. $WMT

Key Points

• Veratis Advisors acquired 40,978 Walmart shares worth approximately $4.87 million in the second quarter, making Walmart its eighth-largest holding and representing about 3.4% of its portfolio.
• Walmart’s latest quarter exceeded expectations, with EPS of $0.81 versus $0.74 expected and revenue of $187.94 billion, up 5.9% year over year. Global e-commerce rose 23% and advertising revenue increased 38%.
• Shares opened at $103.09, below both their 50-day and 200-day moving averages, while analysts maintained a generally positive outlook with a “Moderate Buy” consensus and an average price target of $131.88.

Veratis Advisors Inc. bought a new position in Walmart Inc. (NASDAQ:WMT - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm bought 40,978 shares of the retailer's stock, valued at approximately $4,869,000. Walmart accounts for about 3.4% of Veratis Advisors Inc.'s portfolio, making the stock its 8th biggest position.

Other hedge funds also recently bought and sold shares of the company. State Street Corp grew its holdings in Walmart by 1.2% in the 3rd quarter. State Street Corp now owns 184,805,978 shares of the retailer's stock valued at $19,046,104,000 after buying an additional 2,242,364 shares during the last quarter. Geode Capital Management LLC lifted its holdings 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 worth $11,426,753,000 after buying an additional 6,517,394 shares during the last quarter. Norges Bank acquired a new position in shares of Walmart during the fourth quarter worth approximately $6,458,529,000. Fisher Asset Management LLC boosted its position 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 acquiring an additional 328,229 shares during the period. Finally, Franklin Resources Inc. grew its stake in shares of Walmart by 2.6% in the fourth quarter. Franklin Resources Inc. now owns 36,820,550 shares of the retailer's stock worth $4,102,546,000 after acquiring an additional 920,969 shares during the last quarter. 26.76% of the stock is currently owned by institutional investors.

Key Stories Impacting Walmart

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 Price Performance

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

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

Insider Buying and Selling

In other news, EVP Daniel Danker sold 50,644 shares of the stock in a transaction that occurred on Wednesday, August 26th. The stock was sold at an average price of $105.35, for a total value of $5,335,345.40. Following the completion of the transaction, the executive vice president directly owned 201,672 shares of the company's stock, valued at approximately $21,246,145.20. This represents a 20.07% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. 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. Also, EVP David W. Guggina sold 11,978 shares of the firm's stock in a transaction that occurred on 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 transaction, the executive vice president owned 125,067 shares of the company's stock, valued at $14,985,527.94. This trade represents a 8.74% 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. In the last 90 days, insiders have sold 77,292 shares of company stock valued at $8,421,143. 0.09% of the stock is currently owned by company insiders.

Analyst Ratings Changes

Several research firms recently commented on WMT. Morgan Stanley reiterated an "overweight" rating and set a $125.00 target price (down from $140.00) on shares of Walmart in a research note on Friday, August 21st. Roth Capital restated a "buy" rating on shares of Walmart in a report on Friday, August 21st. Weiss Ratings lowered shares of Walmart from a "buy (b)" rating to a "buy (b-)" rating in a research report on Friday, July 31st. Cantor Fitzgerald upgraded shares of Walmart to a "buy" rating in a research note on Friday, August 21st. Finally, Citigroup decreased their target price on Walmart from $147.00 to $132.00 and set a "buy" rating on the stock in a research report on Friday, August 21st. Three investment analysts have rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $131.88.

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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