Walmart (NASDAQ:WMT) Stock Price Down 7.3% - Here's Why

Key Points

• Walmart shares fell 7.3% after the company’s latest earnings report, despite beating Q1 expectations on both revenue and EPS. The stock dropped to around $121 as investors reacted more to forward-looking concerns than the quarter’s solid results.
• The main drag was weak guidance: Walmart’s Q2 outlook came in below Wall Street estimates, and management kept its full-year forecast conservative. The company also warned that higher fuel prices are pressuring consumers and raising logistics costs.
• Operational trends remain strong underneath the cautious outlook, with global e-commerce sales up 26% and advertising revenue up 37%. Analysts still largely rate the stock a Buy, with a consensus target price above the current share price.

Walmart Inc. (NASDAQ:WMT - Get Free Report)'s share price dropped 7.3% during mid-day trading on Thursday . The stock traded as low as $120.39 and last traded at $121.34. Approximately 52,527,852 shares changed hands during trading, an increase of 101% from the average daily volume of 26,146,713 shares. The stock had previously closed at $130.85.

Key Headlines Impacting Walmart

Here are the key news stories impacting Walmart this week:

• Positive Sentiment: Walmart posted stronger-than-expected Q1 results, with revenue of $177.75 billion and EPS of $0.66, helped by grocery demand, U.S. same-store sales growth, and continued e-commerce momentum. Walmart Inc. (WMT) Q1 2027 Earnings Call Transcript
• Positive Sentiment: Global e-commerce sales rose 26% and advertising revenue jumped 37%, showing Walmart’s digital and marketplace businesses are still growing quickly. Walmart reports revenue growth of 7.3%, up 5.9% in constant currency (cc)
• Positive Sentiment: Walmart reaffirmed its strategic growth areas, including membership fee growth and higher gross profit rate, which supports the long-term earnings story. Walmart Goes AI Native and Doesn't Look Back
• Neutral Sentiment: Several analysts remained constructive ahead of earnings, citing strong e-commerce growth and raising price targets, but those bullish calls were not enough to offset the cautious outlook. Walmart Stock: Here’s Why Analysts Are Raising Price Targets Before Q1 Earnings.
• Negative Sentiment: Walmart’s Q2 guidance came in below expectations, with EPS and revenue forecasts both short of consensus, which is the main reason the stock is falling today. Walmart Inc. (WMT) Q1 2027 Earnings Call Transcript
• Negative Sentiment: Management said higher fuel prices are pressuring consumers and Walmart’s own transportation and logistics costs, creating a near-term margin and demand headwind. Walmart stock falls on cautious earnings outlook as gas prices hit consumers' wallets
• Negative Sentiment: Walmart also kept its full-year outlook conservative versus analyst expectations, signaling it is not ready to forecast a stronger acceleration in profits yet. Walmart Posts Q1 Beat: Stock Sags as Bar Was Already Sky-High

Wall Street Analysts Forecast Growth

WMT has been the subject of several recent analyst reports. Rothschild & Co Redburn set a $150.00 price objective on shares of Walmart in a research report on Tuesday, February 17th. Roth Mkm restated a "buy" rating and set a $138.00 price objective on shares of Walmart in a research report on Friday, February 20th. Jefferies Financial Group set a $145.00 target price on shares of Walmart in a research note on Friday, February 20th. Royal Bank Of Canada set a $145.00 target price on shares of Walmart in a research note on Friday, February 20th. Finally, Bank of America started coverage on shares of Walmart in a research note on Friday, February 27th. They set a "buy" rating and a $150.00 target price for the company. Two research analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, Walmart currently has an average rating of "Buy" and a consensus target price of $138.88.

Walmart Trading Down 7.3%

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 has a market cap of $967.20 billion, a PE ratio of 44.28, a price-to-earnings-growth ratio of 4.96 and a beta of 0.65. The company's 50 day simple moving average is $126.91 and its two-hundred day simple moving average is $119.89.

Walmart (NASDAQ:WMT - Get Free Report) last posted its quarterly earnings data on Thursday, May 21st. The retailer reported $0.66 EPS for the quarter, beating the consensus estimate of $0.65 by $0.01. Walmart had a net margin of 3.07% and a return on equity of 21.44%. The business had revenue of $177.75 billion during the quarter, compared to analyst estimates of $174.84 billion. During the same quarter last year, the firm posted $0.61 earnings per share. The business's revenue for the quarter was up 7.4% compared to the same quarter last year. 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 anticipate that Walmart Inc. will post 2.89 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, EVP John D. Rainey sold 20,000 shares of the firm's stock in a transaction that occurred on Monday, March 2nd. The shares were sold at an average price of $127.79, for a total value of $2,555,800.00. Following the completion of the transaction, the executive vice president owned 486,764 shares of the company's stock, valued at approximately $62,203,571.56. This trade represents a 3.95% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director C Douglas Mcmillon sold 19,416 shares of the firm's stock in a transaction that occurred on Thursday, February 26th. The shares were sold at an average price of $126.71, for a total transaction of $2,460,201.36. Following the completion of the transaction, the director directly owned 4,023,209 shares of the company's stock, valued at approximately $509,780,812.39. The trade was a 0.48% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 154,065 shares of company stock valued at $19,281,401. 0.10% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Merkkuri Wealth Advisors LLC purchased a new position in Walmart in the first quarter worth approximately $29,000. Entrust Financial LLC purchased a new position in Walmart in the fourth quarter worth approximately $27,000. Collier Financial purchased a new position in Walmart in the third quarter worth approximately $25,000. Your Advocates Ltd. LLP purchased a new position in Walmart in the third quarter worth approximately $28,000. Finally, Beacon Financial Strategies CORP purchased a new position in Walmart in the fourth quarter worth approximately $30,000. Hedge funds and other institutional investors own 26.76% of the company's stock.

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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