Walmart (NASDAQ:WMT) Downgraded to Accumulate Rating by Gordon Haskett

Key Points

• Gordon Haskett downgraded Walmart from “buy” to “accumulate,” though the broader analyst consensus remains “Moderate Buy” with an average price target of $138.50.
• Walmart exceeded quarterly expectations with $0.81 adjusted EPS and $187.94 billion in revenue, while e-commerce, advertising and membership businesses posted strong growth.
• Shares fell 9.6% to $103.32 after Walmart’s outlook disappointed: U.S. comparable sales missed estimates, and third-quarter EPS and revenue guidance came in below Wall Street expectations.

Walmart (NASDAQ:WMT - Get Free Report) was downgraded by analysts at Gordon Haskett from a "buy" rating to an "accumulate" rating in a report issued on Thursday.

Other research analysts have also issued research reports about the stock. Evercore reaffirmed an "outperform" rating on shares of Walmart in a research note on Monday, May 18th. Weiss Ratings downgraded shares of Walmart from a "buy (b)" rating to a "buy (b-)" rating in a research note on Friday, July 31st. Wolfe Research restated an "outperform" rating and issued a $137.00 price objective (up from $135.00) on shares of Walmart in a report on Monday, May 11th. DA Davidson restated a "buy" rating and issued a $150.00 price objective on shares of Walmart in a report on Monday. Finally, KeyCorp reaffirmed an "overweight" rating on shares of Walmart in a research note on Wednesday, August 12th. One analyst has rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $138.50.

Walmart Trading Down 9.6%

Shares of WMT stock traded down $10.98 on Thursday, reaching $103.32. 61,585,711 shares of the stock were exchanged, compared to its average volume of 25,350,910. The stock has a market cap of $822.23 billion, a PE ratio of 36.25, a P/E/G ratio of 4.31 and a beta of 0.61. Walmart has a one year low of $95.42 and a one year high of $135.15. The company has a debt-to-equity ratio of 0.42, a current ratio of 0.77 and a quick ratio of 0.23. The stock has a 50 day moving average price of $114.03 and a 200 day moving average price of $121.49.

Walmart (NASDAQ:WMT - Get Free Report) last posted its quarterly 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 business had revenue of $187.94 billion for the quarter, compared to analysts' expectations of $186.62 billion. Walmart had a return on equity of 21.25% and a net margin of 3.13%.The firm's quarterly revenue was up 5.9% compared to the same quarter last year. During the same quarter last year, the business 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 research analysts forecast that Walmart will post 2.88 EPS for the current fiscal year.

Insider Buying and Selling

In related news, EVP Christopher James Nicholas sold 2,900 shares of the business's stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $118.19, for a total transaction of $342,751.00. Following the completion of the transaction, the executive vice president owned 574,953 shares in the company, valued at approximately $67,953,695.07. The trade was a 0.50% decrease in their ownership of the stock. The sale was disclosed in a document filed 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, Director C Douglas Mcmillon sold 19,416 shares of the company's stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $118.63, for a total transaction of $2,303,320.08. Following the completion of the sale, the director directly owned 4,174,579 shares of the company's stock, valued at $495,230,306.77. The trade was 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. Insiders sold a total of 54,164 shares of company stock worth $6,389,402 over the last quarter. Insiders own 0.09% of the company's stock.

Hedge Funds Weigh In On Walmart

Several institutional investors and hedge funds have recently made changes to their positions in the company. JNBA Financial Advisors increased its position in shares of Walmart by 7.3% in the 2nd quarter. JNBA Financial Advisors now owns 1,647 shares of the retailer's stock valued at $187,000 after buying an additional 112 shares in the last quarter. Advocacy Wealth Management LLC lifted its holdings in Walmart by 5.5% during the second quarter. Advocacy Wealth Management LLC now owns 4,235 shares of the retailer's stock worth $480,000 after acquiring an additional 222 shares in the last quarter. Oarsman Capital Inc. grew its stake in Walmart by 0.3% in the second quarter. Oarsman Capital Inc. now owns 44,246 shares of the retailer's stock valued at $5,011,000 after acquiring an additional 115 shares during the period. Quantitative Investment Management LLC acquired a new position in Walmart in the second quarter valued at about $10,855,000. Finally, Sigma Planning Corp increased its holdings in shares of Walmart by 1.3% in the second quarter. Sigma Planning Corp now owns 117,735 shares of the retailer's stock worth $13,335,000 after acquiring an additional 1,555 shares in the last quarter. Institutional investors and hedge funds own 26.76% of the company's stock.

Walmart News Roundup

Here are the key news stories impacting Walmart this week:

• Positive Sentiment: Walmart reported fiscal second-quarter adjusted earnings of $0.81 per share, above the $0.74 analyst consensus, while revenue rose 5.9% year over year to $187.94 billion, exceeding expectations. Walmart earnings report
• Positive Sentiment: Growth businesses remained strong: global e-commerce sales increased 23%, global advertising revenue rose 38%, and membership fee revenue grew 17%. These trends support Walmart’s efforts to diversify beyond traditional stores. Walmart reports revenue growth
• Positive Sentiment: Walmart expects to use approximately $2.9 billion in tariff refunds to help lower prices beginning in the third quarter. The move could strengthen customer traffic and market share, although it may also limit future margin benefits. Walmart tariff refund price cuts
• Neutral Sentiment: Management raised full-year fiscal 2027 guidance, but the new outlook remains below Wall Street’s expectations: EPS of $2.80–$2.87 versus $2.89 expected, and revenue of $734.7–$741.7 billion versus $751.8 billion expected.
• Negative Sentiment: U.S. comparable sales increased just 2.6%, missing the 3.7% consensus estimate and marking Walmart’s weakest comparable-sales growth in more than six years. Reports cited softer consumer spending, elevated gas prices and weaker store performance. Walmart comparable sales miss
• Negative Sentiment: Third-quarter guidance was the main pressure point. Walmart forecast EPS of $0.62–$0.64 and revenue of $183.1–$184.5 billion, below estimates of $0.68 and $188.2 billion, respectively. The timing of Flipkart’s Big Billion Days promotion is expected to reduce third-quarter sales growth by more than 100 basis points. Walmart soft forecast

About Walmart

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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