Walmart Inc. (NASDAQ:WMT) Receives Consensus Recommendation of "Buy" from Brokerages

Key Points

• Walmart received a consensus “Buy” rating from 34 brokerages, with 30 buy ratings and 2 strong buy ratings. The average 1-year analyst price target is about $138.67.
• Several analysts recently raised or reaffirmed bullish views, including Wells Fargo, BTIG, KeyCorp, Roth Mkm, and Bank of America, with price targets ranging from $138 to $150.
• Despite the positive analyst sentiment, insiders have been selling shares, including CEO John R. Furner and EVP John D. Rainey, while institutional investors such as Vanguard and State Street continue to hold large positions in the company.

Shares of Walmart Inc. (NASDAQ:WMT - Get Free Report) have been given a consensus recommendation of "Buy" by the thirty-four brokerages that are covering the firm, Marketbeat.com reports. Two investment analysts have rated the stock with a hold rating, thirty have assigned a buy rating and two have issued a strong buy rating on the company. The average 1-year target price among analysts that have covered the stock in the last year is $138.6667.

A number of equities research analysts recently weighed in on the stock. Wells Fargo & Company reaffirmed an "overweight" rating and set a $140.00 price objective (up from $130.00) on shares of Walmart in a research report on Tuesday, February 10th. BTIG Research boosted their price objective on shares of Walmart from $140.00 to $145.00 and gave the company a "buy" rating in a research report on Wednesday, May 6th. KeyCorp reaffirmed an "overweight" rating and set a $145.00 price objective (up from $128.00) on shares of Walmart in a research report on Friday, February 13th. Roth Mkm reaffirmed a "buy" rating and set a $138.00 price objective on shares of Walmart in a research report on Friday, February 20th. Finally, Bank of America assumed coverage on shares of Walmart in a research report on Friday, February 27th. They set a "buy" rating and a $150.00 price objective for the company.

Insider Buying and Selling at Walmart

In other Walmart news, EVP John D. Rainey sold 20,000 shares of the company's stock in a transaction dated Monday, March 2nd. The shares were sold at an average price of $127.79, for a total value of $2,555,800.00. Following the completion of the transaction, the executive vice president owned 486,764 shares in the company, valued at approximately $62,203,571.56. This represents a 3.95% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO John R. Furner sold 13,125 shares of the company's stock in a transaction dated Thursday, April 16th. The stock was sold at an average price of $124.84, for a total transaction of $1,638,525.00. Following the completion of the transaction, the chief executive officer owned 674,162 shares of the company's stock, valued at approximately $84,162,384.08. This trade represents a 1.91% 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. Over the last quarter, insiders have sold 167,195 shares of company stock worth $20,975,804. 0.10% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. grew its position in Walmart by 1.0% in the 4th quarter. Vanguard Group Inc. now owns 439,957,146 shares of the retailer's stock worth $49,015,626,000 after purchasing an additional 4,304,436 shares during the last quarter. State Street Corp grew its position in Walmart by 1.2% in the 3rd quarter. State Street Corp now owns 184,805,978 shares of the retailer's stock worth $19,046,104,000 after purchasing an additional 2,242,364 shares during the last quarter. Geode Capital Management LLC grew its position in Walmart by 6.8% in the 4th 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 last quarter. Norges Bank bought a new position in Walmart in the 4th quarter worth about $6,458,529,000. Finally, Fisher Asset Management LLC grew its position in Walmart by 0.8% in the 4th quarter. Fisher Asset Management LLC now owns 40,626,852 shares of the retailer's stock worth $4,526,238,000 after purchasing an additional 328,229 shares during the last quarter. Institutional investors own 26.76% of the company's stock.

More Walmart News

Here are the key news stories impacting Walmart this week:

• Positive Sentiment: Morgan Stanley reiterated its Walmart price target ahead of earnings, reinforcing a favorable analyst outlook for the retailer. Morgan Stanley reiterates Walmart stock price target pre-earnings
• Positive Sentiment: Walmart’s planned layoffs/relocations of roughly 1,000 corporate workers may be viewed as a cost-cutting move that could improve operating efficiency, especially as the company consolidates technology and AI teams. Walmart Lays Off or Relocates About 1,000 Corporate Workers
• Neutral Sentiment: Other coverage this week noted pressure on Walmart’s margins from its grocery-heavy sales mix, although e-commerce, advertising and efficiency gains are helping offset some of that pressure. Walmart's Category Mix Pressures Margins: More Pain Ahead?
• Negative Sentiment: Walmart also faces a new higher minimum wage requirement in parts of California, which could add labor cost pressure if passed through broadly across stores. Walmart braces for new $18 California law

Walmart Stock Performance

Shares of Walmart stock opened at $130.35 on Wednesday. The firm has a market cap of $1.04 trillion, a PE ratio of 47.57, a price-to-earnings-growth ratio of 4.75 and a beta of 0.65. The firm's 50-day simple moving average is $126.12 and its 200-day simple moving average is $118.70. The company has a debt-to-equity ratio of 0.38, a quick ratio of 0.24 and a current ratio of 0.79. Walmart has a 1 year low of $91.89 and a 1 year high of $134.69.

Walmart (NASDAQ:WMT - Get Free Report) last issued its earnings results on Thursday, February 19th. The retailer reported $0.74 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.73 by $0.01. The business had revenue of $190.66 billion for the quarter, compared to analyst estimates of $188.37 billion. Walmart had a net margin of 3.07% and a return on equity of 21.44%. The company's revenue for the quarter was up 5.6% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.66 EPS. Walmart has set its FY 2027 guidance at 2.750-2.850 EPS and its Q1 2027 guidance at 0.610-0.610 EPS. Equities analysts forecast that Walmart will post 2.89 earnings per share for the current fiscal year.

Walmart Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, January 4th. Investors of record on Friday, December 11th will be given a dividend of $0.2475 per share. This represents a $0.99 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend is Friday, December 11th. Walmart's dividend payout ratio is currently 36.13%.

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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