Walmart (NASDAQ:WMT) Shares Up 2.2% - Should You Buy?

Key Points

• Walmart shares rose 2.2% on Tuesday, trading as high as $131.12 after the company’s recent earnings report and broader positive news flow helped support the stock.
• The retailer beat expectations on both revenue and EPS in its latest quarter, and it also raised or reaffirmed longer-term guidance, reinforcing confidence in its core business.
• Wall Street remains broadly constructive: analysts mostly rate Walmart a Buy, with a consensus price target of $138.67, though some cost-headwind concerns remain around wages and margins.

Walmart Inc. (NASDAQ:WMT - Get Free Report)'s stock price shot up 2.2% during trading on Tuesday . The stock traded as high as $131.12 and last traded at $130.35. 17,799,112 shares changed hands during trading, a decline of 32% from the average session volume of 26,362,641 shares. The stock had previously closed at $127.59.

Walmart News Roundup

Here are the key news stories impacting Walmart this week:

• Positive Sentiment: Walmart’s latest earnings report beat expectations, with revenue and EPS both ahead of consensus, reinforcing confidence in the company’s core retail business and supporting the stock. The company also raised or reaffirmed longer-term guidance, which can help investor sentiment.
• Positive Sentiment: Morgan Stanley revisited Walmart’s stock ahead of earnings, a sign that Wall Street remains closely focused on the company’s fundamentals and outlook. That kind of attention can help keep the shares supported if expectations remain favorable.
• Neutral Sentiment: A new federal bill focused on reforestation tax incentives was reported to potentially touch large consumer companies like Walmart indirectly through supply-chain sustainability initiatives, but the article does not suggest a material direct impact on Walmart’s business.
• Negative Sentiment: Recent coverage noted Walmart’s stock slipped while the broader market rose, reflecting some investor caution after the prior move higher.
• Negative Sentiment: Headlines about Walmart preparing for California’s new $18 minimum wage and about category mix pressuring margins point to cost headwinds that could weigh on profitability, especially if wage and input costs rise faster than sales growth.

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on WMT shares. Weiss Ratings restated a "buy (b)" rating on shares of Walmart in a report on Monday, April 20th. Sanford C. Bernstein restated an "outperform" rating and set a $145.00 price objective on shares of Walmart in a report on Tuesday. KeyCorp restated an "overweight" rating and set a $145.00 price objective (up from $128.00) on shares of Walmart in a report on Friday, February 13th. Wall Street Zen cut shares of Walmart from a "buy" rating to a "hold" rating in a report on Sunday, January 18th. Finally, Raymond James Financial restated an "outperform" rating and set a $135.00 price objective on shares of Walmart in a report on Friday, March 6th. Two equities research 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's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Buy" and a consensus price target of $138.67.

Walmart Price Performance

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 company's 50-day simple moving average is $126.07 and its 200-day simple moving average is $118.54. The stock has a market capitalization of $1.04 trillion, a P/E ratio of 47.57, a price-to-earnings-growth ratio of 4.86 and a beta of 0.65.

Walmart (NASDAQ:WMT - Get Free Report) last posted its quarterly earnings results on Thursday, February 19th. The retailer reported $0.74 earnings per share (EPS) 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 for the quarter, compared to analyst estimates of $188.37 billion. During the same period in the prior year, the firm posted $0.66 earnings per share. The company's quarterly revenue was up 5.6% compared to the same quarter last year. 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 2.89 EPS for the current fiscal year.

Walmart Dividend Announcement

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

Insider Transactions at Walmart

In other Walmart news, Director C Douglas Mcmillon sold 19,416 shares of the company's stock in a transaction on Thursday, February 26th. The shares were sold at an average price of $126.71, for a total value of $2,460,201.36. Following the transaction, the director directly owned 4,023,209 shares in the company, valued at $509,780,812.39. The trade was a 0.48% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Christopher James Nicholas sold 34,082 shares of the company's stock in a transaction on Friday, February 20th. The shares were sold at an average price of $122.00, for a total transaction of $4,158,004.00. Following the completion of the transaction, the executive vice president owned 533,466 shares in the company, valued at approximately $65,082,852. This represents a 6.01% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 167,195 shares of company stock valued at $20,975,804. Corporate insiders own 0.10% of the company's stock.

Hedge Funds Weigh In On Walmart

Institutional investors and hedge funds have recently modified their holdings of the business. Merkkuri Wealth Advisors LLC acquired a new position in shares of Walmart in the first quarter valued at about $29,000. Entrust Financial LLC acquired a new position in shares of Walmart in the fourth quarter valued at about $27,000. Collier Financial acquired a new position in shares of Walmart in the third quarter valued at about $25,000. Your Advocates Ltd. LLP acquired a new position in shares of Walmart in the third quarter valued at about $28,000. Finally, Beacon Financial Strategies CORP acquired a new position in shares of Walmart in the fourth quarter valued at about $30,000. 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.

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