Walmart (NASDAQ:WMT) Rating Lowered to Hold at Erste Group Bank

Key Points

• Erste Group Bank downgraded Walmart from buy to hold, even as the broader analyst community remains constructive on the stock with a consensus Moderate Buy rating and an average target price of $138.85.
• Walmart’s latest earnings showed EPS of $0.66, matching expectations, while revenue of $177.75 billion beat forecasts and rose 7.4% year over year.
• Recent company developments include insider stock sales by executives and a new expansion of Walmart’s delivery service to include Subway from in-store restaurant locations, which could support its omnichannel strategy.

Walmart (NASDAQ:WMT - Get Free Report) was downgraded by Erste Group Bank from a "buy" rating to a "hold" rating in a research note issued to investors on Friday.

Several other research analysts also recently commented on the company. Citigroup reiterated a "buy" rating and issued a $147.00 price objective (up from $120.00) on shares of Walmart in a report on Thursday, February 5th. BTIG Research reiterated a "buy" rating and issued a $145.00 price objective on shares of Walmart in a report on Wednesday. Raymond James Financial reissued an "outperform" rating and issued a $135.00 target price on shares of Walmart in a research note on Friday, March 6th. Deutsche Bank Aktiengesellschaft set a $120.00 target price on Walmart in a research note on Friday, February 20th. Finally, The Goldman Sachs Group reaffirmed a "buy" rating and set a $138.00 price objective on shares of Walmart in a research report on Friday, February 20th. One investment analyst has rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, Walmart has an average rating of "Moderate Buy" and a consensus target price of $138.85.

Walmart Stock Up 0.7%

WMT opened at $117.74 on Friday. The stock has a market cap of $936.98 billion, a PE ratio of 41.31, a P/E/G ratio of 4.36 and a beta of 0.59. The company has a quick ratio of 0.23, a current ratio of 0.77 and a debt-to-equity ratio of 0.42. Walmart has a 52 week low of $93.43 and a 52 week high of $135.15. The business's fifty day simple moving average is $125.70 and its 200 day simple moving average is $121.09.

Walmart (NASDAQ:WMT - Get Free Report) last released its earnings results on Thursday, May 21st. The retailer reported $0.66 EPS for the quarter, meeting analysts' consensus estimates of $0.66. The business had revenue of $177.75 billion for the quarter, compared to analysts' expectations of $174.84 billion. Walmart had a return on equity of 21.25% and a net margin of 3.13%.The firm's revenue was up 7.4% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.61 earnings per share. Walmart has set its FY 2027 guidance at 2.750-2.850 EPS and its Q2 2027 guidance at 0.720-0.740 EPS. As a group, research analysts expect that Walmart will post 2.89 earnings per share for the current fiscal year.

Insider Transactions at Walmart

In other news, Director C Douglas Mcmillon sold 19,416 shares of the business's stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $118.63, for a total value of $2,303,320.08. Following 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. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Christopher James Nicholas sold 2,900 shares of the business's stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $123.92, for a total value of $359,368.00. Following the completion of the sale, the executive vice president directly owned 577,853 shares in the company, valued at approximately $71,607,543.76. This represents a 0.50% decrease in their ownership of the stock. 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 90 days, insiders sold 117,008 shares of company stock worth $14,492,704. Company insiders own 0.09% of the company's stock.

Hedge Funds Weigh In On Walmart

Hedge funds have recently added to or reduced their stakes in the company. Collier Financial purchased a new stake in Walmart during the 3rd quarter valued at $25,000. Entrust Financial LLC purchased a new stake in Walmart during the 4th quarter valued at $27,000. Merkkuri Wealth Advisors LLC purchased a new stake in Walmart during the 1st quarter valued at $29,000. Redmont Wealth Advisors LLC purchased a new stake in Walmart during the 3rd quarter valued at $30,000. Finally, Beacon Financial Strategies CORP purchased a new stake in Walmart during the 4th quarter valued at $30,000. 26.76% of the stock is currently owned by hedge funds and other institutional investors.

Key Walmart News

Here are the key news stories impacting Walmart this week:

• Positive Sentiment: Walmart expanded its delivery offering to include Subway from in-store restaurant locations, which could make its app more useful, increase delivery orders, and strengthen its competitive position against DoorDash, Uber Eats, and Amazon. Walmart Adds Express Delivery From In-Store Restaurants, Starting With Subway®
• Positive Sentiment: Shareholders approved management’s direction at the annual meeting, with CEO John Furner highlighting strong FY26 results and continued omnichannel performance, reinforcing confidence in Walmart’s business model. Walmart Announces 2026 Annual Shareholders' Meeting Voting Results
• Neutral Sentiment: Investors rejected a proposal requiring a report on how AI and automation affect workers, removing a potential compliance burden but not changing near-term fundamentals. Walmart Shareholders Reject Bid to Require AI Workplace Impact Report
• Neutral Sentiment: Walmart’s broader AI and retail-tech initiatives, including internal coding tools and efforts to avoid vendor lock-in, support longer-term efficiency gains but are not immediate stock catalysts. Code Puppy: Walmart's secret weapon against AI lock-in
• Negative Sentiment: A new lawsuit over hiring practices in Massachusetts adds a legal and compliance overhang that could create distraction and headline risk for the stock. Walmart Lawsuit Puts Massachusetts Hiring Practices And Investor Risks In Focus

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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