Walmart (NASDAQ:WMT) Shares Down 1.8% - Time to Sell?

Key Points

• Shares fell 1.8% to about $126.82 on Friday with trading volume roughly 53% below average, and investors are cautious after a strong YTD run as analysts flag Walmart’s premium valuation (P/E ~46.3) could invite near‑term profit taking.
• Wall Street remains broadly bullish—most analysts rate Walmart a Buy with several price‑target upgrades (Citigroup, TD Cowen, UBS) and an average target of $137.12.
• Walmart is shifting toward higher‑margin areas (AI, advertising, memberships, automation) and initiatives like EV charging, reported a slight quarterly EPS beat, and set FY‑2027 guidance of 2.75–2.85 EPS while paying a modest dividend (yield ~0.8%).

Shares of Walmart Inc. (NASDAQ:WMT - Get Free Report) dropped 1.8% during mid-day trading on Friday . The company traded as low as $126.22 and last traded at $126.8170. Approximately 13,862,233 shares traded hands during trading, a decline of 53% from the average daily volume of 29,599,730 shares. The stock had previously closed at $129.13.

Key Walmart News

Here are the key news stories impacting Walmart this week:

• Positive Sentiment: Jim Cramer and other commentators continue to call Walmart a “juggernaut,” reinforcing bullish retail sentiment and attracting momentum buyers. Jim Cramer Calls Walmart “A Stock That Truly Defines the Term Juggernaut”
• Positive Sentiment: Analysts and research pieces highlight Walmart’s shift to higher‑margin profit engines — AI, advertising, memberships and automation — which support margin expansion and justify higher multiples. Assessing Walmart (WMT) Valuation As AI And Higher‑Margin Profit Engines Reshape The Business
• Positive Sentiment: Prominent analysts (Neuberger Berman coverage cited in Barron’s) continue to back Walmart, saying the company deserves a premium valuation given its scale and execution — a vote of confidence for long‑term investors. Costco and Walmart Deserve Their Rich Valuations, This Analyst Says
• Positive Sentiment: Walmart’s strategic initiatives keep expanding — including moves into EV charging infrastructure — which diversify revenue touchpoints and strengthen the long‑term investment case. Walmart EV Charging Push Adds New Dimension To Investment Case
• Positive Sentiment: Large institutional investors like Israel Englander’s Millennium (longstanding holdings) signal continued institutional conviction in Walmart’s stability and growth prospects. Walmart Inc. (WMT): Israel Englander Is Bullish on This Retail Giant
• Neutral Sentiment: Walmart presented at the J.P. Morgan Retail Round‑Up forum — shows active investor outreach but no single market‑moving announcement in the transcript. Walmart Inc. (WMT) Presents at J.P. Morgan Retail Round Up Forum 2026 Transcript
• Neutral Sentiment: Coverage comparing club retailers (PriceSmart, Costco, Sam’s Club) keeps Walmart in the peer conversation — useful for comps but not an immediate catalyst. Why PriceSmart’s Discount May Not Last Much Longer
• Negative Sentiment: Several articles flag Walmart’s premium valuation after a strong run (double‑digit YTD gains), raising the risk of near‑term profit taking; analysts also warn macro/retail margin risks that could pressure the stock. Walmart Stock Gains 14% YTD: Buy, Hold or Take Profits Now?

Analyst Upgrades and Downgrades

WMT has been the topic of a number of research analyst reports. Citigroup reissued a "buy" rating and set a $147.00 price objective (up from $120.00) on shares of Walmart in a report on Thursday, February 5th. TD Cowen reissued a "buy" rating and set a $145.00 price objective (up from $136.00) on shares of Walmart in a report on Friday, February 20th. Royal Bank Of Canada set a $145.00 price objective on shares of Walmart in a report on Friday, February 20th. Evercore reissued an "outperform" rating and set a $130.00 price objective (up from $125.00) on shares of Walmart in a report on Tuesday, February 3rd. Finally, UBS Group reaffirmed a "buy" rating and issued a $147.00 price target (up from $135.00) on shares of Walmart in a report on Friday, February 20th. Two analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, Walmart presently has an average rating of "Buy" and an average target price of $137.12.

Walmart Stock Performance

The company has a current ratio of 0.79, a quick ratio of 0.24 and a debt-to-equity ratio of 0.38. The firm's 50-day moving average is $125.71 and its two-hundred day moving average is $114.92. The stock has a market cap of $1.01 trillion, a price-to-earnings ratio of 46.28, a P/E/G ratio of 4.74 and a beta of 0.66.

Walmart (NASDAQ:WMT - Get Free Report) last released its quarterly earnings results on Thursday, February 19th. The retailer reported $0.74 earnings per share for the quarter, topping the consensus estimate of $0.73 by $0.01. Walmart had a net margin of 3.07% and a return on equity of 21.44%. The firm had revenue of $190.66 billion during the quarter, compared to the consensus estimate of $188.37 billion. During the same quarter in the prior year, the firm earned $0.66 EPS. The company's revenue for the quarter was up 5.6% on a year-over-year basis. Walmart has set its FY 2027 guidance at 2.750-2.850 EPS and its Q1 2027 guidance at 0.610-0.610 EPS. As a group, sell-side analysts expect that Walmart Inc. will post 2.55 earnings per share for the current year.

Walmart Announces Dividend

The business also recently declared 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 annualized dividend and a dividend yield of 0.8%. The ex-dividend date is Friday, December 11th. Walmart's dividend payout ratio is 36.13%.

Insider Activity

In other Walmart news, CEO C Douglas Mcmillon sold 19,416 shares of the stock in a transaction dated Thursday, January 22nd. The shares were sold at an average price of $119.17, for a total value of $2,313,804.72. Following the completion of the sale, the chief executive officer owned 4,274,856 shares in the company, valued at approximately $509,434,589.52. This represents a 0.45% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Donna Morris sold 76,181 shares of the firm's stock in a transaction that occurred on Tuesday, February 3rd. The stock was sold at an average price of $123.79, for a total transaction of $9,430,445.99. Following the completion of the transaction, the executive vice president directly owned 402,072 shares in the company, valued at $49,772,492.88. This trade represents a 15.93% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 274,278 shares of company stock worth $33,825,793. Company insiders own 0.10% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Fox Run Management L.L.C. acquired a new stake in Walmart during the 3rd quarter worth $1,709,000. CWM LLC raised its stake in Walmart by 24.2% during the 3rd quarter. CWM LLC now owns 1,175,703 shares of the retailer's stock worth $121,168,000 after acquiring an additional 229,220 shares in the last quarter. Harel Insurance Investments & Financial Services Ltd. raised its stake in Walmart by 16.6% during the 3rd quarter. Harel Insurance Investments & Financial Services Ltd. now owns 63,782 shares of the retailer's stock worth $6,567,000 after acquiring an additional 9,061 shares in the last quarter. Van ECK Associates Corp raised its stake in Walmart by 2.9% during the 3rd quarter. Van ECK Associates Corp now owns 1,010,886 shares of the retailer's stock worth $104,182,000 after acquiring an additional 28,026 shares in the last quarter. Finally, World Investment Advisors increased its stake in Walmart by 5.2% in the third quarter. World Investment Advisors now owns 293,866 shares of the retailer's stock valued at $30,286,000 after purchasing an additional 14,487 shares during the period. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.