Walmart (NASDAQ:WMT) Stock Falls 2.2% Following Insider Selling

Key Points

• Walmart shares fell 2.2% to $124.86, with trading volume 16% below the daily average.
• CTO Suresh Kumar sold 166,342 shares for about $20.5 million, and EVP Daniel Bartlett sold 3,346 shares for about $416,600. Both transactions were made under pre-arranged Rule 10b5-1 plans.
• Analyst sentiment remains broadly positive: Walmart has a consensus “Buy” rating and an average price target of $132.41. Its latest reported quarter also beat EPS and revenue expectations, with revenue up 5.9% year over year.

Shares of Walmart Inc. (NASDAQ:WMT - Get Free Report) traded down 2.2% on Tuesday after an insider sold shares in the company. The stock traded as low as $124.55 and last traded at $124.86. 20,934,146 shares changed hands during trading, a decline of 16% from the average daily volume of 24,796,098 shares. The stock had previously closed at $127.69.

Specifically, CTO Suresh Kumar sold 166,342 shares of the business's stock in a transaction dated Friday, October 30th. The stock was sold at an average price of $123.21, for a total transaction of $20,494,997.82. Following the sale, the chief technology officer directly owned 1,632,223 shares in the company, valued at approximately $201,106,195.83. The trade was a 9.25% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Daniel Bartlett sold 3,346 shares of the company's stock in a transaction that occurred on Monday, November 2nd. The shares were sold at an average price of $124.51, for a total value of $416,610.46. Following the completion of the sale, the executive vice president owned 615,013 shares in the company, valued at $76,575,268.63. The trade was a 0.54% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on WMT. Robert W. Baird cut their target price on Walmart from $140.00 to $120.00 and set an "outperform" rating on the stock in a report on Friday, August 21st. Guggenheim set a $130.00 price target on shares of Walmart and gave the company a "buy" rating in a research report on Friday, August 21st. Oppenheimer restated a "market perform" rating on shares of Walmart in a research report on Tuesday, August 25th. Royal Bank Of Canada decreased their target price on Walmart from $137.00 to $131.00 and set an "outperform" rating on the stock in a research note on Friday, August 21st. Finally, Wolfe Research reaffirmed an "outperform" rating and set a $115.00 price objective on shares of Walmart in a report on Friday, August 21st. Four investment analysts have rated the stock with a Strong Buy rating, thirty-two have given a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Buy" and a consensus target price of $132.41.

Walmart News Summary

Here are the key news stories impacting Walmart this week:

• Positive Sentiment: Walmart’s e-commerce sales are reportedly growing faster than Amazon’s, and the company has gained online market share. That growth could help support its longer-term sales outlook. Article: 1 Stat That Makes Walmart Hard to Ignore This November
• Positive Sentiment: Walmart is expanding its Sparky AI shopping assistant ahead of the holiday season. The initiative could improve customer engagement and order spending, though its sales impact remains to be seen. Article: Can Walmart's Expanded Sparky AI Boost Holiday Shopping and Sales?
• Neutral Sentiment: A Zacks analysis says Walmart’s earnings history and current indicators make another earnings beat possible. This is an analyst expectation, not a reported result. Article: Why Walmart Is Poised to Beat Earnings Estimates Again
• Neutral Sentiment: Walmart is investigating whistleblower claims of vendor kickbacks at Flipkart; the allegations have not been established. The company also announced a home backup-energy offering and plans for a Texas robotics facility, developments whose financial effects are unclear. Article: Walmart Probes Flipkart Claims As It Expands Into Power And Texas Robotics
• Negative Sentiment: Recent commentary has called Walmart’s valuation stretched and reiterated a “strong sell” view. Concerns that the share price already reflects substantial growth could pressure sentiment, despite the company’s defensive retail profile. Article: Walmart: Back To The Strong Sell Rating Article: Walmart’s Defensive Reputation Collides With A Stretched Valuation

Walmart Trading Down 2.2%

The company has a quick ratio of 0.23, a current ratio of 0.77 and a debt-to-equity ratio of 0.41. The firm has a market cap of $990.61 billion, a PE ratio of 45.08, a PEG ratio of 4.29 and a beta of 0.58. The stock's fifty day simple moving average is $110.71 and its two-hundred day simple moving average is $118.44.

Walmart (NASDAQ:WMT - Get Free Report) last announced its quarterly earnings data on Thursday, August 20th. The retailer reported $0.81 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.74 by $0.07. Walmart had a return on equity of 21.83% and a net margin of 3.00%. The business had revenue of $187.94 billion during the quarter, compared to analysts' expectations of $186.64 billion. During the same quarter in the previous year, the business earned $0.68 earnings per share. The firm's quarterly revenue was up 5.9% compared to the same quarter last year. 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, sell-side analysts forecast that Walmart Inc. will post 2.87 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Bank of America Corp DE acquired a new stake in Walmart in the second quarter valued at approximately $7,455,131,000. Legal & General Group Plc purchased a new position in Walmart in the second quarter worth $2,905,655,000. Canada Pension Plan Investment Board acquired a new position in shares of Walmart during the second quarter worth $796,677,000. Deutsche Bank AG increased its position in shares of Walmart by 54.0% during 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 holdings in shares of Walmart by 44.4% during the 2nd quarter. Amundi now owns 20,796,957 shares of the retailer's stock valued at $2,355,463,000 after purchasing an additional 6,393,326 shares during the last quarter. 26.76% of the stock is owned by institutional investors.

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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