Traders Purchase Large Volume of Walmart Call Options (NASDAQ:WMT)

Key Points

• Walmart call-option activity surged: Investors purchased 166,747 call options, 33% above the typical volume, while shares rose 1.4% to $105.12 during Monday trading.
• Recent earnings exceeded expectations: Walmart reported adjusted EPS of $0.81 versus the $0.74 consensus and revenue of about $187.9 billion, up 5.9% year over year. Management also modestly raised its full-year outlook.
• Analysts remain broadly bullish: Walmart has a “Moderate Buy” consensus rating and an average price target of $131.88, despite some target reductions; several institutional investors also increased their holdings.

Walmart Inc. (NASDAQ:WMT - Get Free Report) saw unusually large options trading on Monday. Stock investors bought 166,747 call options on the company. This represents an increase of 33% compared to the typical volume of 125,242 call options.

Walmart Trading Up 1.4%

Shares of NASDAQ WMT traded up $1.43 during mid-day trading on Monday, hitting $105.12. The company's stock had a trading volume of 18,141,670 shares, compared to its average volume of 25,572,373. Walmart has a one year low of $95.42 and a one year high of $135.15. The company's fifty day simple moving average is $113.35 and its 200-day simple moving average is $121.24. 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 stock has a market cap of $836.59 billion, a price-to-earnings ratio of 37.95, a price-to-earnings-growth ratio of 3.91 and a beta of 0.61.

Walmart (NASDAQ:WMT - Get Free Report) last posted its quarterly earnings results on Thursday, August 20th. The retailer reported $0.81 earnings per share for the quarter, topping 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 business had revenue of $187.94 billion during the quarter, compared to the consensus estimate of $186.64 billion. During the same period in the previous year, the firm posted $0.68 earnings per share. Walmart's revenue for the quarter 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 anticipate that Walmart will post 2.86 earnings per share for the current fiscal year.

Walmart News Summary

Here are the key news stories impacting Walmart this week:

• Positive Sentiment: Walmart reported revenue of approximately $187.9 billion versus expectations of $186.8 billion and adjusted EPS of $0.81, ahead of the $0.74 consensus estimate. Management also modestly raised full-year expectations, supporting the view that the retailer remains financially resilient. Walmart earnings and consumer spending article
• Positive Sentiment: Walmart-owned Flipkart is reportedly gaining ground on India’s quick-commerce leaders, strengthening the company’s international growth prospects as competition with Amazon intensifies. Flipkart quick-commerce article
• Positive Sentiment: Walmart’s planned Scenario apparel brand, with most products priced below $25, could attract younger shoppers, improve its fashion credentials and help it compete more directly with Amazon. Walmart Scenario apparel article

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on WMT shares. Raymond James Financial reissued an "outperform" rating and issued a $130.00 target price on shares of Walmart in a report on Friday. BMO Capital Markets reaffirmed an "outperform" rating and set a $126.00 price target on shares of Walmart in a report on Friday. Tigress Financial reiterated a "buy" rating and issued a $155.00 price objective (up from $150.00) on shares of Walmart in a research report on Friday, May 29th. Sanford C. Bernstein reissued an "outperform" rating on shares of Walmart in a research note on Friday. Finally, Robert W. Baird lowered their target price on Walmart from $140.00 to $120.00 and set an "outperform" rating for the company in a research note on Friday. Two investment analysts have rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Walmart currently has an average rating of "Moderate Buy" and an average price target of $131.88.

Insider Activity at Walmart

In other news, EVP Daniel J. Bartlett sold 3,775 shares of the firm's stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $109.64, for a total value of $413,891.00. Following the sale, the executive vice president owned 630,009 shares in the company, valued at approximately $69,074,186.76. This trade represents a 0.60% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible 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 business's stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $118.63, for a total transaction of $2,303,320.08. Following the transaction, the director directly owned 4,174,579 shares in the company, valued at $495,230,306.77. This trade represents a 0.46% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 57,064 shares of company stock valued at $6,697,788. 0.09% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Walmart

Several institutional investors have recently modified their holdings of the stock. California State Teachers Retirement System boosted its position in shares of Walmart by 11,189.0% during the second quarter. California State Teachers Retirement System now owns 755,604,916 shares of the retailer's stock worth $85,579,813,000 after purchasing an additional 748,911,635 shares in the last quarter. Vanguard Group Inc. lifted its holdings in Walmart by 1.0% during the fourth quarter. Vanguard Group Inc. now owns 439,957,146 shares of the retailer's stock worth $49,015,626,000 after acquiring an additional 4,304,436 shares in the last quarter. State Street Corp increased its holdings in shares of Walmart by 1.2% in the third quarter. State Street Corp now owns 184,805,978 shares of the retailer's stock worth $19,046,104,000 after acquiring an additional 2,242,364 shares in the last quarter. Geode Capital Management LLC raised its position in shares of Walmart by 6.8% during the fourth quarter. Geode Capital Management LLC now owns 103,010,709 shares of the retailer's stock worth $11,426,753,000 after purchasing an additional 6,517,394 shares during the period. Finally, Bank of America Corp DE bought a new position in shares of Walmart during the 2nd quarter valued at about $7,455,131,000. 26.76% of the stock is currently owned by institutional investors and hedge funds.

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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