Walmart Inc. $WMT is Cumberland Partners Ltd's 6th Largest Position

Key Points

• Cumberland Partners increased its Walmart stake by 6.5% in the second quarter to 446,379 shares valued at approximately $50.6 million, making Walmart its sixth-largest holding and representing 3.3% of its portfolio.
• Walmart reported quarterly EPS of $0.66, in line with estimates, while revenue rose 7.4% year over year to $177.75 billion. The stock traded around $114.30, with a market capitalization near $910 billion and a P/E ratio of about 40.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and a $138.50 price target, but investors face valuation and margin concerns as price cuts, cautious consumers and competition pressure sales and profitability.

Cumberland Partners Ltd increased its holdings in shares of Walmart Inc. (NASDAQ:WMT - Free Report) by 6.5% in the second quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 446,379 shares of the retailer's stock after purchasing an additional 27,279 shares during the quarter. Walmart accounts for about 3.3% of Cumberland Partners Ltd's investment portfolio, making the stock its 6th largest holding. Cumberland Partners Ltd's holdings in Walmart were worth $50,557,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of WMT. Norges Bank acquired a new stake in shares of Walmart in the fourth quarter worth $6,458,529,000. AQR Capital Management LLC lifted its holdings in shares of Walmart by 188.1% during the 3rd quarter. AQR Capital Management LLC now owns 11,663,172 shares of the retailer's stock valued at $1,199,907,000 after acquiring an additional 7,614,172 shares in the last quarter. Geode Capital Management LLC lifted its holdings in shares of Walmart by 6.8% during the 4th 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. Capital International Investors purchased a new stake in Walmart during the 4th quarter worth $592,848,000. Finally, Vanguard Group Inc. boosted its position in Walmart by 1.0% during the 4th quarter. Vanguard Group Inc. now owns 439,957,146 shares of the retailer's stock worth $49,015,626,000 after purchasing an additional 4,304,436 shares during the period. 26.76% of the stock is owned by institutional investors and hedge funds.

Walmart Stock Down 0.8%

WMT stock 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 firm has a 50 day simple moving average of $114.03 and a 200-day simple moving average of $121.49. The company has a market capitalization of $909.61 billion, a P/E ratio of 40.11, a PEG ratio of 4.31 and a beta of 0.61. Walmart Inc. has a twelve month low of $95.42 and a twelve month high of $135.15.

Walmart (NASDAQ:WMT - Get Free Report) last posted its quarterly 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 net margin of 3.13% and a return on equity of 21.25%. The firm had revenue of $177.75 billion for the quarter, compared to analysts' expectations of $174.84 billion. During the same period in the prior year, the company posted $0.61 earnings per share. The firm's quarterly revenue was up 7.4% on a year-over-year basis. On average, equities research analysts predict that Walmart Inc. will post 2.88 earnings per share for the current fiscal year.

Walmart News Roundup

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 other news, EVP David W. Guggina sold 11,978 shares of the business's stock in a transaction dated Wednesday, June 10th. The shares were 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 of the company's stock, valued at approximately $14,985,527.94. The trade was a 8.74% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director C Douglas Mcmillon sold 19,416 shares of the company's stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $118.63, for a total transaction of $2,303,320.08. Following the completion of the sale, the director owned 4,174,579 shares in the company, valued at approximately $495,230,306.77. This trade represents a 0.46% decrease in their position. 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. Insiders sold 54,164 shares of company stock worth $6,389,402 over the last 90 days. Company insiders own 0.09% of the company's stock.

Analyst Ratings Changes

Several research analysts have commented on the company. BNP Paribas Exane cut their price objective on Walmart from $147.00 to $146.00 and set an "outperform" rating on the stock in a research report on Friday, May 22nd. Weiss Ratings downgraded Walmart from a "buy (b)" rating to a "buy (b-)" rating in a research report on Friday, July 31st. Mizuho set a $130.00 target price on Walmart in a research note on Monday, July 27th. KeyCorp reissued an "overweight" rating on shares of Walmart in a research report on Wednesday, August 12th. Finally, BMO Capital Markets restated an "outperform" rating on shares of Walmart in a report on Friday, May 22nd. One equities research analyst has rated the stock with a Strong Buy rating, thirty have assigned a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $138.50.

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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