Walmart (NASDAQ:WMT) Stock Price Down 2.7% on Analyst Downgrade

Key Points

• Walmart shares fell 2.7% to $103.92 after Mizuho cut its price target from $130 to $125, though it maintained an “outperform” rating. Analysts overall remain moderately bullish, with a consensus target of $131.74.
• Recent earnings exceeded expectations, with quarterly EPS of $0.81 versus $0.74 estimated and revenue of $187.94 billion, up 5.9% year over year. Walmart guided for fiscal 2027 EPS of $2.80–$2.87.
• Digital growth remains a key opportunity through Flipkart’s Google AI shopping pilot, Meta’s Muse shopping agent and expanding store-fulfilled delivery. However, valuation concerns, competitive pricing pressure and questions about delivery profitability remain risks.

Shares of Walmart Inc. (NASDAQ:WMT - Get Free Report) traded down 2.7% during mid-day trading on Wednesday after Mizuho lowered their price target on the stock from $130.00 to $125.00. Mizuho currently has an outperform rating on the stock. Walmart traded as low as $103.92 and last traded at $103.92. Approximately 27,630,247 shares traded hands during trading, an increase of 9% from the average session volume of 25,384,301 shares. The stock had previously closed at $106.80.

A number of other research analysts have also weighed in on WMT. Tigress Financial restated a "buy" rating and issued a $155.00 target price on shares of Walmart in a report on Monday, August 31st. Erste Group Bank lowered Walmart from a "buy" rating to a "hold" rating in a research report on Friday, June 5th. Raymond James Financial restated an "outperform" rating and set a $130.00 price objective on shares of Walmart in a research note on Friday, August 21st. Truist Financial set a $114.00 price objective on shares of Walmart and gave the stock a "buy" rating in a report on Friday, August 21st. Finally, Piper Sandler reiterated 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. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat, Walmart presently has an average rating of "Moderate Buy" and a consensus target price of $131.74.

Insiders Place Their Bets

In other news, CEO John Furner sold 13,125 shares of the firm's stock in a transaction on Thursday, September 17th. The stock was sold at an average price of $106.66, for a total transaction of $1,399,912.50. Following the completion of the sale, the chief executive officer directly owned 647,912 shares of the company's stock, valued at $69,106,293.92. This trade represents a 1.99% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Daniel Bartlett sold 3,950 shares of the business's stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $105.14, for a total transaction of $415,303.00. Following the completion of the transaction, the executive vice president directly owned 622,349 shares in the company, valued at $65,433,773.86. This trade represents a 0.63% 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 77,229 shares of company stock worth $8,187,833 over the last 90 days. Company insiders own 0.09% of the company's stock.

Key Stories Impacting Walmart

Here are the key news stories impacting Walmart this week:

• Positive Sentiment: AI and e-commerce expansion: Walmart’s Flipkart business is participating in Google’s pilot allowing Indian shoppers to discover and purchase products directly through Gemini and Google AI Mode. The initiative could increase Flipkart traffic and sales ahead of India’s festive shopping season. Walmart Tests AI Shopping in India Through Flipkart
• Positive Sentiment: Broader digital reach: Walmart is among the retailers partnering with Meta’s Muse AI shopping agent, potentially creating another customer-acquisition and transaction channel. Its store-fulfilled delivery business also grew approximately 40% year over year, highlighting continued demand for convenience. Meta’s Muse Takes Aim at E-Commerce Walmart Delivers Forgotten Groceries Fast
• Positive Sentiment: Analyst support: Mizuho maintained an “outperform” rating while lowering its price target from $130 to $125, still implying meaningful upside. Comparisons with Dollar General also point to Walmart’s digital growth and improving execution as competitive strengths. Mizuho Walmart Price Target Walmart vs. Dollar General
• Neutral Sentiment: Pricing transparency: Walmart said its digital shelf labels do not use personal data to set individualized prices. The clarification may reduce privacy concerns as electronic labels replace paper tags, although the technology’s long-term effect on operating costs remains to be seen. Walmart Digital Shelf Labels
• Negative Sentiment: Valuation and competition: Target’s aggressive holiday price cuts could pressure Walmart’s market share or margins, while Target’s lower valuation makes Walmart appear expensive. Investors are also questioning whether small delivery orders generate enough profit to cover picking and transportation costs. Walmart Stock Data Walmart CEO on Personalized Prices

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. QRG Capital Management Inc. increased its position in Walmart by 4.9% in the second quarter. QRG Capital Management Inc. now owns 874,800 shares of the retailer's stock worth $99,080,000 after buying an additional 40,799 shares during the last quarter. Envestnet Portfolio Solutions Inc. lifted its position in shares of Walmart by 17.8% during the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 138,450 shares of the retailer's stock valued at $15,681,000 after buying an additional 20,942 shares during the last quarter. State Street Corp lifted its position in shares of Walmart by 1.1% during the 2nd quarter. State Street Corp now owns 188,036,646 shares of the retailer's stock valued at $21,297,031,000 after buying an additional 2,107,781 shares during the last quarter. Security National Bank of Sioux City Iowa IA grew its stake in shares of Walmart by 10.4% during the 2nd quarter. Security National Bank of Sioux City Iowa IA now owns 47,571 shares of the retailer's stock worth $5,388,000 after acquiring an additional 4,480 shares during the period. Finally, Wellington Altus USA Inc. grew its stake in shares of Walmart by 6.1% during the 2nd quarter. Wellington Altus USA Inc. now owns 3,573 shares of the retailer's stock worth $444,000 after acquiring an additional 207 shares during the period. 26.76% of the stock is owned by institutional investors.

Walmart Trading Down 2.7%

The firm has a fifty day moving average of $109.10 and a two-hundred day moving average of $117.35. The company has a market cap of $824.47 billion, a PE ratio of 37.52, a price-to-earnings-growth ratio of 4.15 and a beta of 0.59. The company has a current ratio of 0.77, a quick ratio of 0.23 and a debt-to-equity ratio of 0.41.

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

Walmart Company Profile

Walmart Inc NASDAQ: WMT is a multinational retailer that operates supercenters, discount stores, neighborhood markets, warehouse clubs and e-commerce platforms. Its merchandise includes groceries, apparel, electronics, home goods, health and wellness products, household essentials and general merchandise. Walmart also provides services such as grocery pickup and delivery, pharmacy services, financial products and digital advertising.

The company serves customers through its Walmart U.S., Walmart International and Sam's Club segments.

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