Walmart (NASDAQ:WMT) Shares Down 1.3% - Here's Why

Key Points

• Walmart shares fell 1.3% on Tuesday, trading as low as $113.56 amid heavier-than-average volume. The move comes after the stock had closed at $114.60.
• Recent news was mostly positive for Walmart’s long-term strategy, including OnePay’s expansion plans, continued growth in drone and 30-minute delivery, and more private-brand offerings aimed at value-conscious shoppers.
• Despite the pullback, analysts remain constructive: Walmart has a Moderate Buy consensus rating and an average price target of $138.85. The company also recently reported strong quarterly revenue growth of 7.4% and matched earnings expectations.

Walmart Inc. (NASDAQ:WMT - Get Free Report) shares dropped 1.3% during trading on Tuesday . The stock traded as low as $113.56 and last traded at $113.06. Approximately 26,144,402 shares were traded during trading, an increase of 25% from the average daily volume of 20,901,174 shares. The stock had previously closed at $114.60.

Walmart News Summary

Here are the key news stories impacting Walmart this week:

• Positive Sentiment: Walmart-backed fintech OnePay is planning to expand beyond the Walmart ecosystem to grow its user base and cross-sell more financial services, which could support longer-term growth for the company’s digital and payments strategy. Walmart-Backed OnePay Looks Beyond Retailer's Ecosystem to Fuel Expansion
• Positive Sentiment: Walmart continues to strengthen its delivery and logistics edge, including reaching more than 1 million drone deliveries and expanding 30-minute delivery to 33 U.S. markets, reinforcing its competitive position in e-commerce and convenience. Walmart Marks Millionth Drone Drop-Off Amid Increased Delivery Focus
• Positive Sentiment: Walmart is expanding private-brand offerings in hardware and home as budget-conscious shoppers trade down, which may help traffic, basket size, and margins if consumer pressure persists. Walmart Expands Private Brand Selection as Shoppers Cut Back
• Neutral Sentiment: Walmart’s Q1 results were framed favorably versus Target’s, with Walmart benefiting from scale, advertising, and higher-income shopper gains, though the comparison article mainly highlights relative competitive positioning rather than a new catalyst. Target vs Walmart: Both Fighting For The Same Customer, Only One Wins
• Negative Sentiment: Reports that Walmart limited employee AI-tool usage after heavy demand may raise concerns about internal adoption and operational execution, adding a small headwind to sentiment. WMT reportedly caps employee AI usage — stock down nearly 2%

Analyst Upgrades and Downgrades

WMT has been the subject of several recent research reports. Craig Hallum set a $150.00 target price on shares of Walmart in a report on Friday, March 6th. BNP Paribas Exane dropped their price target on shares of Walmart from $147.00 to $146.00 and set an "outperform" rating on the stock in a research report on Friday, May 22nd. Argus raised shares of Walmart to a "strong-buy" rating in a research report on Wednesday, February 18th. Sanford C. Bernstein reaffirmed an "outperform" rating and set a $145.00 price target on shares of Walmart in a research report on Tuesday, May 12th. Finally, BTIG Research reaffirmed a "buy" rating and set a $145.00 price target on shares of Walmart in a research report on Friday, May 22nd. Two investment analysts have rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $138.85.

Walmart Price Performance

The company has a market capitalization of $901.20 billion, a P/E ratio of 39.67, a price-to-earnings-growth ratio of 4.32 and a beta of 0.60. The company's 50-day moving average price is $125.98 and its two-hundred day moving average price is $120.81. The company has a debt-to-equity ratio of 0.42, a current ratio of 0.77 and a quick ratio of 0.23.

Walmart (NASDAQ:WMT - Get Free Report) last issued its quarterly earnings data on Thursday, May 21st. The retailer reported $0.66 earnings per share for the quarter, meeting the consensus estimate of $0.66. The company had revenue of $177.75 billion for the quarter, compared to analyst estimates of $174.84 billion. Walmart had a net margin of 3.13% and a return on equity of 21.25%. The company's revenue was up 7.4% on a year-over-year basis. During the same period 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, sell-side analysts expect that Walmart Inc. will post 2.89 EPS for the current year.

Insider Buying and Selling

In other news, Director C Douglas Mcmillon sold 19,416 shares of the stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $118.63, for a total value of $2,303,320.08. Following the transaction, the director directly owned 4,174,579 shares of the company's stock, valued at $495,230,306.77. This represents a 0.46% 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, EVP Latriece Watkins sold 11,000 shares of the company's stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $118.97, for a total transaction of $1,308,670.00. Following the completion of the transaction, the executive vice president owned 120,203 shares in the company, valued at $14,300,550.91. This trade represents a 8.38% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 117,008 shares of company stock valued at $14,492,704. 0.10% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Walmart

Several institutional investors and hedge funds have recently modified their holdings of the business. Brighton Jones LLC grew its stake in Walmart by 28.8% during the fourth quarter. Brighton Jones LLC now owns 98,150 shares of the retailer's stock worth $8,868,000 after buying an additional 21,939 shares in the last quarter. Revolve Wealth Partners LLC grew its stake in Walmart by 5.8% during the fourth quarter. Revolve Wealth Partners LLC now owns 8,849 shares of the retailer's stock worth $800,000 after buying an additional 485 shares in the last quarter. Peterson Wealth Management grew its stake in Walmart by 3.5% during the first quarter. Peterson Wealth Management now owns 50,307 shares of the retailer's stock worth $4,416,000 after buying an additional 1,715 shares in the last quarter. Sivia Capital Partners LLC grew its stake in Walmart by 0.9% during the second quarter. Sivia Capital Partners LLC now owns 13,008 shares of the retailer's stock worth $1,272,000 after buying an additional 116 shares in the last quarter. Finally, Schnieders Capital Management LLC. grew its stake in Walmart by 1.2% during the second quarter. Schnieders Capital Management LLC. now owns 91,341 shares of the retailer's stock worth $8,931,000 after buying an additional 1,048 shares in the last quarter. 26.76% of the stock is currently owned by institutional investors and hedge funds.

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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