Walmart (NASDAQ:WMT) Trading Up 2.5% - What's Next?

Key Points

• Walmart shares rose 2.5% to about $110.12 in Tuesday trading, with volume below the stock’s average session volume.
• Analysts remain broadly bullish, with a “Moderate Buy” consensus and an average price target of $131.88, despite several firms recently lowering their targets.
• Walmart beat quarterly expectations, reporting $0.81 EPS versus the $0.74 consensus and $187.94 billion in revenue, up 5.9% year over year.

Walmart Inc. (NASDAQ:WMT - Get Free Report) shares rose 2.5% during trading on Tuesday . The stock traded as high as $110.19 and last traded at $110.12. 19,322,112 shares were traded during mid-day trading, a decline of 24% from the average session volume of 25,448,307 shares. The stock had previously closed at $107.44.

Analyst Upgrades and Downgrades

WMT has been the topic of a number of recent analyst reports. BMO Capital Markets restated an "outperform" rating and set a $126.00 price target on shares of Walmart in a report on Friday, August 21st. Freedom Broker upgraded shares of Walmart from a "hold" rating to a "strong-buy" rating in a research report on Thursday, August 20th. Wolfe Research reissued an "outperform" rating and set a $115.00 target price on shares of Walmart in a research note on Friday, August 21st. Morgan Stanley reissued an "overweight" rating and set a $125.00 target price (down from $140.00) on shares of Walmart in a research note on Friday, August 21st. Finally, Wells Fargo & Company decreased their target price on Walmart from $140.00 to $120.00 and set an "overweight" rating for the company in a research report on Friday, August 21st. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-two have assigned a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $131.88.

Walmart Trading Up 2.5%

The company has a current ratio of 0.77, a quick ratio of 0.23 and a debt-to-equity ratio of 0.41. The company has a market cap of $873.66 billion, a PE ratio of 39.75, a P/E/G ratio of 4.07 and a beta of 0.59. The business's 50-day simple moving average is $109.63 and its 200-day simple moving average is $118.03.

Walmart (NASDAQ:WMT - Get Free Report) last issued its earnings results 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 net margin of 3.00% and a return on equity of 21.83%. The company had revenue of $187.94 billion during the quarter, compared to analyst estimates of $186.64 billion. During the same quarter last year, the business posted $0.68 EPS. The company's revenue for the quarter was up 5.9% on a year-over-year basis. 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, analysts expect that Walmart Inc. will post 2.87 EPS for the current fiscal year.

Insider Transactions at Walmart

In other news, CEO John R. Furner sold 13,125 shares of Walmart stock in a transaction dated 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 in the company, valued at $69,106,293.92. The trade was a 1.99% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Christopher Nicholas sold 2,900 shares of the business's stock in a transaction that occurred on Thursday, September 17th. The shares were sold at an average price of $106.65, for a total value of $309,285.00. Following the completion of the sale, the executive vice president directly owned 566,253 shares of the company's stock, valued at approximately $60,390,882.45. The trade was a 0.51% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 81,004 shares of company stock worth $8,601,724 in the last ninety days. Company insiders own 0.09% of the company's stock.

Hedge Funds Weigh In On Walmart

A number of institutional investors have recently modified their holdings of the company. Merkkuri Wealth Advisors LLC bought a new position in shares of Walmart in the first quarter worth about $29,000. Montgomery Financial Services LLC bought a new stake in Walmart during the 2nd quarter valued at approximately $32,000. Sankala Group LLC acquired a new stake in Walmart in the 4th quarter valued at approximately $33,000. Motiv8 Investments LLC acquired a new stake in Walmart in the 4th quarter valued at approximately $34,000. Finally, Copos Capital S.a r.l. bought a new position in Walmart in the 4th quarter worth approximately $34,000. Institutional investors own 26.76% of the company's stock.

About Walmart

Walmart Inc is a multinational retail and technology company that operates supercenters, discount stores, neighborhood markets, e-commerce platforms and membership warehouse clubs. Its merchandise includes groceries, apparel, electronics, home goods, health and beauty products, general merchandise and other consumer products.

Founded by Sam Walton in 1962 and incorporated in 1969, Walmart is headquartered in Bentonville, Arkansas. The company serves customers through operations in the United States and international markets, including Mexico, Canada, China, India and several countries in Central America and Africa.

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