Walmart (NASDAQ:WMT) Trading Down 1.4% - Should You Sell?

Key Points

• Walmart shares fell 1.4% on Tuesday, dipping to as low as $117.92 as investors digested recent news and earnings-related concerns.
• Fundamentals remain strong: Q1 revenue rose about 7% and global e-commerce sales jumped 26%, helped by delivery, marketplace growth, and faster fulfillment.
• Margins and expectations are under pressure, with investors reacting to a cautious outlook, higher operating costs, and mixed analyst reactions despite mostly bullish ratings and a consensus Moderate Buy view.

Shares of Walmart Inc. (NASDAQ:WMT - Get Free Report) fell 1.4% on Tuesday . The company traded as low as $117.92 and last traded at $118.57. 28,644,533 shares traded hands during trading, an increase of 9% from the average session volume of 26,275,297 shares. The stock had previously closed at $120.27.

Walmart News Roundup

Here are the key news stories impacting Walmart this week:

• Positive Sentiment: Walmart continues to show strong top-line momentum, with Q1 revenue up about 7% and global e-commerce sales jumping 26%, supported by delivery, marketplace growth, and faster fulfillment. Article Title
• Positive Sentiment: The company’s higher-margin “second P&L” businesses — including advertising, marketplace fees, and membership income — continue to support the long-term growth story even as core retail faces pressure. Article Title
• Positive Sentiment: Walmart is set to join the top 10 of the Russell 3000 Index during the June 2026 reconstitution, which could draw additional institutional attention and passive fund buying. Article Title
• Neutral Sentiment: Walmart introduced a logistics program aimed at simplifying how suppliers move products into its distribution network, a move that could improve efficiency but is not an immediate earnings catalyst. Article Title
• Neutral Sentiment: Analyst commentary remains mixed: UBS and RBC both trimmed price targets after Q1, but kept constructive ratings, suggesting the pullback is tied more to elevated expectations and guidance concerns than to a broken business model. Article Title
• Negative Sentiment: Investors are reacting to Walmart’s cautious earnings outlook and pressure from higher fuel and other operating costs, which are squeezing margins and outweighing the strong revenue trend. Article Title
• Negative Sentiment: Two senior executives are leaving as Walmart reshapes leadership, adding a layer of uncertainty around execution and longer-term priorities. Article Title

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on WMT shares. Royal Bank Of Canada restated an "outperform" rating and set a $137.00 price objective (down from $140.00) on shares of Walmart in a report on Friday. KeyCorp reiterated an "overweight" rating on shares of Walmart in a report on Friday. Oppenheimer reissued an "outperform" rating and issued a $140.00 price target (up from $125.00) on shares of Walmart in a research report on Monday, February 9th. Wells Fargo & Company restated an "overweight" rating and set a $140.00 price objective (up from $130.00) on shares of Walmart in a report on Tuesday, February 10th. Finally, Rothschild & Co Redburn set a $150.00 price objective on shares of Walmart in a research note on Tuesday, February 17th. Two analysts have rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $138.71.

Walmart Stock Down 1.4%

The company has a current ratio of 0.77, a quick ratio of 0.24 and a debt-to-equity ratio of 0.42. The stock has a market capitalization of $945.12 billion, a PE ratio of 41.60, a P/E/G ratio of 4.45 and a beta of 0.65. The stock's fifty day simple moving average is $126.67 and its 200-day simple moving average is $120.29.

Walmart (NASDAQ:WMT - Get Free Report) last announced its earnings results on Thursday, May 21st. The retailer reported $0.66 EPS for the quarter, meeting the consensus estimate of $0.66. Walmart had a net margin of 3.13% and a return on equity of 21.25%. The company had revenue of $177.75 billion during the quarter, compared to the consensus estimate of $174.84 billion. During the same quarter in the prior year, the company posted $0.61 earnings per share. The firm's revenue for the quarter was up 7.4% on a year-over-year basis. 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 forecast that Walmart Inc. will post 2.89 EPS for the current fiscal year.

Insider Activity

In other news, EVP John D. Rainey sold 20,000 shares of the business's stock in a transaction that occurred on Monday, March 2nd. The stock was sold at an average price of $127.79, for a total value of $2,555,800.00. Following the transaction, the executive vice president owned 486,764 shares in the company, valued at $62,203,571.56. The trade was a 3.95% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Daniel J. Bartlett sold 1,335 shares of the company's stock in a transaction that occurred on Wednesday, April 15th. The shares were sold at an average price of $124.63, for a total value of $166,381.05. Following the completion of the transaction, the executive vice president directly owned 636,843 shares of the company's stock, valued at approximately $79,369,743.09. This represents a 0.21% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 126,008 shares of company stock worth $15,896,715. Corporate insiders own 0.10% of the company's stock.

Institutional Investors Weigh In On Walmart

Several large investors have recently made changes to their positions in the business. MFA Wealth Services raised its position in Walmart by 0.7% in the first quarter. MFA Wealth Services now owns 10,909 shares of the retailer's stock worth $1,356,000 after acquiring an additional 80 shares during the period. Realta Investment Advisors grew its position in shares of Walmart by 2.0% during the 1st quarter. Realta Investment Advisors now owns 4,089 shares of the retailer's stock valued at $508,000 after acquiring an additional 81 shares during the period. Compton Financial Group LLC grew its position in shares of Walmart by 4.1% during the 1st quarter. Compton Financial Group LLC now owns 2,081 shares of the retailer's stock valued at $259,000 after acquiring an additional 82 shares during the period. Renaissance Group LLC increased its stake in shares of Walmart by 0.9% during the 4th quarter. Renaissance Group LLC now owns 9,636 shares of the retailer's stock worth $1,074,000 after purchasing an additional 83 shares during the last quarter. Finally, Calton & Associates Inc. increased its stake in shares of Walmart by 0.3% during the 4th quarter. Calton & Associates Inc. now owns 27,220 shares of the retailer's stock worth $3,033,000 after purchasing an additional 84 shares during the last quarter. 26.76% of the stock is owned by hedge funds and other institutional investors.

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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