Walmart (NASDAQ:WMT) Shares Down 2.5% - What's Next?

Key Points

• Walmart shares fell 2.5% on Wednesday, trading as low as $130.33 after a recent close of $134.20, with volume running above average.
• Despite the pullback, the analyst tone remains broadly bullish: UBS reaffirmed a Buy rating, several firms raised targets ahead of earnings, and the consensus target sits around $138.88.
• Investors are focused on upcoming earnings and guidance as a key catalyst, especially since Walmart’s latest quarter beat expectations on both EPS and revenue and the company continues to benefit from e-commerce growth and its defensive retail position.

Walmart Inc. (NASDAQ:WMT - Get Free Report) was down 2.5% during mid-day trading on Wednesday . The stock traded as low as $130.33 and last traded at $130.85. Approximately 28,126,722 shares traded hands during trading, an increase of 8% from the average daily volume of 25,925,941 shares. The stock had previously closed at $134.20.

Walmart News Summary

Here are the key news stories impacting Walmart this week:

• Positive Sentiment: UBS reaffirmed its Buy rating on Walmart and pointed to strong e-commerce growth, reinforcing confidence that the company can keep taking market share and improving profitability. UBS Reaffirms Buy Rating on Walmart (WMT) Amid Strong E-Commerce Growth
• Positive Sentiment: Analysts have been raising price targets and earnings estimates ahead of the Q1 release, suggesting expectations remain constructive around Walmart’s execution and forward guidance. Walmart Stock: Here’s Why Analysts Are Raising Price Targets Before Q1 Earnings.
• Positive Sentiment: Walmart is being viewed as one of retail’s strongest names heading into earnings, with reports highlighting its scale, online push, and loyalty-fee businesses as advantages during tariff and inflation pressure. Scale, online push and loyalty fees: how Walmart won the year of the tariffs
• Positive Sentiment: Jim Cramer added to the bullish tone, calling Walmart “among the greatest companies in our era,” which can help sentiment as investors look for a defensive winner in a volatile market. Jim Cramer Says “Walmart’s Among the Greatest Companies in Our Era”
• Neutral Sentiment: Investors are closely watching Walmart’s upcoming earnings and guidance, with market commentary suggesting the report could be a key catalyst if the company confirms strong growth trends. Walmart's guidance in focus during Q1 earnings
• Neutral Sentiment: Walmart remains in the spotlight as a defensive retail leader while investors compare it with Target and other chains ahead of a busy earnings season. Target eyes breakout on beat-and-raise report. Walmart results due
• Negative Sentiment: One small insider sale by EVP Daniel J. Bartlett created a mild overhang, though the transaction was pre-arranged and not necessarily a bearish signal. SEC Form 4 filing

Wall Street Analyst Weigh In

Several research analysts recently issued reports on WMT shares. Piper Sandler reissued an "overweight" rating and set a $137.00 price target (up from $130.00) on shares of Walmart in a report on Friday, May 15th. Roth Mkm restated a "buy" rating and set a $138.00 target price on shares of Walmart in a research report on Friday, February 20th. Sanford C. Bernstein restated an "outperform" rating and set a $145.00 target price on shares of Walmart in a research report on Tuesday, May 12th. HSBC lowered shares of Walmart from a "buy" rating to a "hold" rating and upped their target price for the stock from $122.00 to $131.00 in a research report on Friday, February 20th. Finally, Raymond James Financial restated an "outperform" rating and set a $135.00 target price on shares of Walmart in a research report on Friday, March 6th. Two analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, Walmart has a consensus rating of "Buy" and an average target price of $138.88.

Walmart Stock Down 2.5%

The company has a debt-to-equity ratio of 0.38, a current ratio of 0.79 and a quick ratio of 0.24. The firm's 50-day simple moving average is $126.78 and its two-hundred day simple moving average is $119.68. The company has a market capitalization of $1.04 trillion, a price-to-earnings ratio of 47.76, a price-to-earnings-growth ratio of 4.93 and a beta of 0.65.

Walmart (NASDAQ:WMT - Get Free Report) last released its quarterly earnings results on Thursday, February 19th. The retailer reported $0.74 EPS for the quarter, beating the consensus estimate 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 quarterly revenue was up 5.6% on a year-over-year basis. During the same period in the prior year, the business earned $0.66 earnings per share. Walmart has set its FY 2027 guidance at 2.750-2.850 EPS and its Q1 2027 guidance at 0.610-0.610 EPS. Sell-side analysts predict that Walmart Inc. will post 2.89 EPS for the current fiscal year.

Walmart Dividend Announcement

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

Insiders Place Their Bets

In other news, CEO John R. Furner sold 13,125 shares of the stock in a transaction that occurred on Thursday, April 16th. The shares were sold at an average price of $124.84, for a total value of $1,638,525.00. Following the sale, the chief executive officer directly owned 674,162 shares in the company, valued at $84,162,384.08. This represents a 1.91% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP John D. Rainey sold 20,000 shares of the stock in a transaction that occurred on Monday, March 2nd. The shares were sold at an average price of $127.79, for a total transaction of $2,555,800.00. Following the completion of the sale, the executive vice president owned 486,764 shares in the company, valued at $62,203,571.56. This represents a 3.95% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 167,190 shares of company stock valued at $20,975,838. Corporate insiders own 0.10% of the company's stock.

Institutional Trading of Walmart

Several large investors have recently modified their holdings of WMT. Collier Financial acquired a new stake in Walmart during the third quarter worth approximately $25,000. Entrust Financial LLC acquired a new stake in Walmart during the fourth quarter worth approximately $27,000. Your Advocates Ltd. LLP acquired a new stake in Walmart during the third quarter worth approximately $28,000. Merkkuri Wealth Advisors LLC acquired a new stake in Walmart during the first quarter worth approximately $29,000. Finally, Redmont Wealth Advisors LLC acquired a new stake in Walmart during the third quarter worth approximately $30,000. 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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