Walmart (NASDAQ:WMT) Trading Down 1% - Here's Why

Key Points

• Walmart shares fell 1% to $105.38 in mid-day trading, with volume slightly above the daily average.
• The company reported better-than-expected quarterly results, including adjusted EPS of $0.81 and revenue of $187.94 billion, and raised full-year revenue-growth guidance to 4%-5%.
• Despite several analysts cutting price targets, Walmart retains a “Moderate Buy” consensus rating with an average target of $131.88; its Sparky AI shopping assistant also reportedly lifted customer spending by about 40% in early tests.

Walmart Inc. (NASDAQ:WMT - Get Free Report)'s share price dropped 1% during mid-day trading on Tuesday . The company traded as low as $104.40 and last traded at $105.38. 26,477,878 shares changed hands during mid-day trading, an increase of 3% from the average daily volume of 25,690,574 shares. The stock had previously closed at $106.49.

Key Walmart News

Here are the key news stories impacting Walmart this week:

• Positive Sentiment: Walmart’s Sparky AI shopping assistant reportedly increases customer spending by about 40% in early tests. The retailer is also exploring partnerships with OpenAI and ChatGPT, potentially supporting higher engagement, average order values and future advertising or technology revenue. Walmart says its AI assistant, Sparky, is leading to customers spending 40% more than those who shop without it
• Positive Sentiment: The company raised full-year revenue guidance to 4%-5% growth from 3.5%-4.5%, while reporting adjusted earnings of $0.81 per share and revenue of $187.94 billion—both ahead of analyst expectations. Walmart earnings and guidance update
• Positive Sentiment: Analysts’ consensus price target of approximately $128.43 implies substantial upside from recent trading levels, reinforcing the view that Walmart remains a long-term, relatively defensive compounder for investors willing to tolerate slower near-term growth. Walmart Keeps Cratering: 45% Gains Are Expected From A Respected Wall Street Pro

Analyst Ratings Changes

Several analysts have issued reports on the stock. Gordon Haskett lowered shares of Walmart from a "buy" rating to an "accumulate" rating in a research report on Thursday, August 20th. Raymond James Financial reiterated an "outperform" rating and issued a $130.00 price objective on shares of Walmart in a report on Friday. Telsey Advisory Group reissued an "outperform" rating and issued a $130.00 target price (down from $140.00) on shares of Walmart in a research note on Friday. Roth Capital restated a "buy" rating on shares of Walmart in a research report on Friday. Finally, Citigroup lowered their price objective on Walmart from $147.00 to $132.00 and set a "buy" rating for the company in a research report on Friday. Three research analysts have rated the stock with a Strong Buy rating, thirty-two have given a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $131.88.

Walmart Trading Down 1.0%

The firm has a market cap of $838.62 billion, a PE ratio of 38.04, a PEG ratio of 3.91 and a beta of 0.61. The firm has a fifty day simple moving average of $113.06 and a two-hundred day simple moving average of $121.09. 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 posted its earnings results on Thursday, August 20th. The retailer reported $0.81 earnings per share (EPS) for the quarter, beating the consensus estimate 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 business's revenue was up 5.9% compared to the same quarter last year. During the same period in the previous 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. Equities analysts forecast that Walmart Inc. will post 2.86 EPS for the current year.

Insider Transactions at Walmart

In other news, EVP Daniel J. Bartlett sold 3,775 shares of the firm's stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $109.64, for a total value of $413,891.00. Following the completion of the transaction, the executive vice president owned 630,009 shares in the company, valued at $69,074,186.76. This trade represents a 0.60% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director C Douglas Mcmillon sold 19,416 shares of the firm's stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $118.63, for a total value of $2,303,320.08. Following the transaction, the director directly owned 4,174,579 shares of the company's stock, valued at $495,230,306.77. This 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. In the last three months, insiders have sold 57,064 shares of company stock worth $6,697,788. 0.09% of the stock is owned by insiders.

Institutional Trading of Walmart

Institutional investors have recently bought and sold shares of the company. Entrust Financial LLC purchased a new stake in shares of Walmart during the fourth quarter valued at $27,000. Merkkuri Wealth Advisors LLC bought a new position in Walmart in the 1st quarter worth $29,000. Bay Harbor Wealth Management LLC increased its holdings in Walmart by 57.4% in the 4th quarter. Bay Harbor Wealth Management LLC now owns 288 shares of the retailer's stock worth $32,000 after acquiring an additional 105 shares in the last quarter. Montgomery Financial Services LLC bought a new stake in shares of Walmart during the 2nd quarter valued at $32,000. Finally, Sankala Group LLC purchased a new position in shares of Walmart during the 4th quarter valued at $33,000. 26.76% of the stock is owned by hedge funds and other institutional investors.

Walmart Company 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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