Walmart Inc. $WMT Stock: MGO One Seven LLC Decreases Stake

Key Points

• MGO One Seven LLC reduced its Walmart stake by 2.7% in the third quarter, selling 9,887 shares and retaining 356,797 shares valued at approximately $37.1 million.
• Other institutional investors increased their exposure, including Deutsche Bank and Amundi, while institutional investors collectively own 26.76% of Walmart’s outstanding stock.
• Walmart beat quarterly earnings and revenue expectations, with revenue up 5.9% year over year. Analysts maintain a generally bullish view, with an average “Buy” rating and a $132.41 price target, although the stock’s elevated valuation and competitive and regulatory risks could limit upside.

MGO One Seven LLC cut its holdings in Walmart Inc. (NASDAQ:WMT - Free Report) by 2.7% in the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 356,797 shares of the retailer's stock after selling 9,887 shares during the quarter. Walmart makes up about 0.6% of MGO One Seven LLC's investment portfolio, making the stock its 25th largest position. MGO One Seven LLC's holdings in Walmart were worth $37,078,000 at the end of the most recent quarter.

A number of other institutional investors have also added to or reduced their stakes in the business. Bank of America Corp DE bought a new stake in Walmart during the second quarter valued at about $7,455,131,000. Legal & General Group Plc bought a new position in Walmart in the second quarter worth about $2,905,655,000. Canada Pension Plan Investment Board bought a new position in Walmart in the second quarter worth about $796,677,000. Deutsche Bank AG raised its holdings in Walmart by 54.0% in the second quarter. Deutsche Bank AG now owns 18,607,297 shares of the retailer's stock worth $2,107,462,000 after purchasing an additional 6,525,224 shares in the last quarter. Finally, Amundi lifted its position in shares of Walmart by 44.4% during the second quarter. Amundi now owns 20,796,957 shares of the retailer's stock valued at $2,355,463,000 after buying an additional 6,393,326 shares during the last quarter. Hedge funds and other institutional investors own 26.76% of the company's stock.

Walmart Price Performance

Shares of NASDAQ WMT opened at $123.51 on Friday. Walmart Inc. has a 12 month low of $98.88 and a 12 month high of $135.15. The company has a debt-to-equity ratio of 0.41, a current ratio of 0.77 and a quick ratio of 0.23. The firm's 50 day simple moving average is $110.23 and its 200-day simple moving average is $118.40. The stock has a market capitalization of $979.90 billion, a price-to-earnings ratio of 44.59, a PEG ratio of 4.46 and a beta of 0.58.

Walmart (NASDAQ:WMT - Get Free Report) last posted 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. 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 company's quarterly revenue was up 5.9% on a year-over-year basis. During the same period last 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. Analysts expect that Walmart Inc. will post 2.87 EPS for the current year.

Walmart News Summary

Here are the key news stories impacting Walmart this week:

• Positive Sentiment: Energy investment expands Walmart’s customer offerings: Walmart is making a strategic investment in Base Power and will offer the company’s home battery systems to Walmart customers and Sam’s Club members beginning in November. The systems are designed to reduce energy costs and provide backup power, creating a potential new customer benefit while expanding Walmart’s ecosystem beyond traditional retail. Walmart and Base Power announce strategic agreement
• Positive Sentiment: Major automation agreement with Symbotic: Walmart expanded its commercial relationship with warehouse-automation provider Symbotic in a deal valued at approximately $6 billion. Greater automation could improve fulfillment capacity, labor efficiency and inventory management, although the investment also carries execution and capital-spending risks. Symbotic stock jumps on Walmart automation deal
• Positive Sentiment: Strong fundamentals continue to support the stock: Walmart’s latest quarterly results exceeded consensus estimates for both earnings and revenue, with revenue rising year over year. Analysts and market commentary continue to highlight earnings growth and price strength as reasons to remain constructive on WMT. Earnings growth and price strength make Walmart a stock to watch
• Neutral Sentiment: Healthcare expansion offers a longer-term growth avenue: Walmart has broadened its Better Care Services platform into a healthcare marketplace connecting customers with third-party providers. The initiative could increase customer engagement, but its financial contribution is not yet clear. Walmart launched a healthcare services marketplace
• Negative Sentiment: Competitive and regulatory concerns remain: DoorDash’s proposed $17 billion acquisition of Instacart is intended partly to strengthen competition with Walmart and Amazon in local commerce and grocery delivery. Separately, the FTC is seeking information from Walmart about the use of personal data in personalized pricing, creating potential compliance and reputational risks. FTC orders Walmart and others to share pricing data information
• Negative Sentiment: Valuation comparisons could limit upside: Walmart trades at a substantially higher earnings multiple than Target, while commentary suggests Walmart’s comparable-sales growth may be moderating. That premium leaves the stock more exposed if growth expectations weaken. Target trades at a fraction of Walmart’s valuation

Analysts Set New Price Targets

A number of research analysts have recently issued reports on the stock. Freedom Broker raised shares of Walmart from a "hold" rating to a "strong-buy" rating in a research report on Thursday, August 20th. Raymond James Financial reiterated an "outperform" rating and set a $130.00 price objective on shares of Walmart in a research note on Friday, August 21st. Piper Sandler restated an "overweight" rating and issued a $128.00 target price (down from $137.00) on shares of Walmart in a research note on Friday, August 21st. Oppenheimer reaffirmed a "market perform" rating on shares of Walmart in a report on Tuesday, August 25th. Finally, The Goldman Sachs Group reaffirmed a "buy" rating and set a $130.00 price target on shares of Walmart in a research report on Friday, August 21st. Four equities research analysts have rated the stock with a Strong Buy rating, thirty-two have assigned a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Buy" and an average price target of $132.41.

Insider Buying and Selling at Walmart

In other news, CEO John Furner sold 13,125 shares of Walmart stock in a transaction dated Thursday, September 17th. The shares were sold at an average price of $106.66, for a total value of $1,399,912.50. Following the sale, the chief executive officer owned 647,912 shares in the company, valued at $69,106,293.92. This trade represents a 1.99% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Daniel Danker sold 50,644 shares of the firm's stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $105.35, for a total transaction of $5,335,345.40. Following the completion of the transaction, the executive vice president directly owned 201,672 shares in the company, valued at $21,246,145.20. This represents a 20.07% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders sold 102,244 shares of company stock valued at $11,112,044. Insiders own 0.09% of the company's stock.

About Walmart

Walmart Inc NASDAQ: WMT operates a global retail business through a network of supercenters, supermarkets, discount stores, neighborhood markets, warehouse clubs and e-commerce platforms. Its stores and websites sell a broad assortment of merchandise, including groceries, consumables, health and wellness products, apparel, electronics, home goods, toys and other general merchandise.

The company organizes its operations into Walmart U.S., Walmart International and Sam's Club U.S. Walmart U.S.

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