Walmart (NASDAQ:WMT) Trading Down 2.5% - Here's Why

Key Points

• Walmart shares fell 2.5% midday to $121.98 (low $121.83) on about 19.7M shares traded, roughly 40% below its average session volume.
• Analysts are mixed—HSBC cut to a "hold" while others keep "buy"/"outperform" ratings—resulting in a consensus rating of Moderate Buy and a consensus target price of $135.76.
• Walmart slightly beat the quarter (EPS $0.74 vs. $0.73 est.; revenue $190.66B vs. $188.37B), and issued FY2027 guidance of $2.75–$2.85 EPS with Q1 2027 guidance of $0.61.

Walmart Inc. (NASDAQ:WMT - Get Free Report)'s stock price fell 2.5% during mid-day trading on Wednesday . The stock traded as low as $121.83 and last traded at $121.98. 19,682,821 shares were traded during trading, a decline of 40% from the average session volume of 32,594,963 shares. The stock had previously closed at $125.08.

Wall Street Analyst Weigh In

A number of research analysts recently commented on WMT shares. HSBC cut Walmart from a "buy" rating to a "hold" rating and boosted their price target for the stock from $122.00 to $131.00 in a report on Friday, February 20th. DA Davidson set a $150.00 price objective on shares of Walmart and gave the company a "buy" rating in a research report on Friday, February 20th. 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. The Goldman Sachs Group reaffirmed a "buy" rating and set a $138.00 target price on shares of Walmart in a research note on Friday, February 20th. Finally, Craig Hallum set a $150.00 price target on shares of Walmart in a report on Friday, March 6th. One research analyst has rated the stock with a Strong Buy rating, thirty have assigned a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $135.76.

Walmart Stock Performance

The business's fifty day moving average is $123.64 and its two-hundred day moving average is $112.47. The stock has a market capitalization of $972.44 billion, a PE ratio of 44.53, a price-to-earnings-growth ratio of 4.69 and a beta of 0.66. The company has a quick ratio of 0.24, a current ratio of 0.79 and a debt-to-equity ratio of 0.38.

Walmart (NASDAQ:WMT - Get Free Report) last released its quarterly earnings data on Thursday, February 19th. The retailer reported $0.74 EPS for the quarter, beating 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 business had revenue of $190.66 billion during the quarter, compared to analyst estimates of $188.37 billion. During the same quarter last year, the business earned $0.66 earnings per share. Walmart'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, research analysts anticipate that Walmart Inc. will post 2.55 EPS for the current fiscal 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 $0.2475 dividend. The ex-dividend date is Friday, December 11th. This represents a $0.99 annualized dividend and a yield of 0.8%. Walmart's dividend payout ratio (DPR) is currently 36.13%.

Insider Activity at Walmart

In other news, EVP Christopher James Nicholas sold 34,082 shares of the business's stock in a transaction that occurred on Friday, February 20th. The stock was sold at an average price of $122.00, for a total transaction of $4,158,004.00. Following the transaction, the executive vice president owned 533,466 shares of the company's stock, valued at approximately $65,082,852. The trade was a 6.01% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, EVP Latriece Watkins sold 10,000 shares of the stock in a transaction on Friday, February 20th. The shares were sold at an average price of $121.46, for a total value of $1,214,600.00. Following the sale, the executive vice president owned 108,294 shares in the company, valued at $13,153,389.24. The trade was a 8.45% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 278,278 shares of company stock valued at $33,974,118 over the last ninety days. 0.10% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of WMT. Vanguard Group Inc. lifted its stake in Walmart by 1.0% in the fourth quarter. Vanguard Group Inc. now owns 439,957,146 shares of the retailer's stock worth $49,015,626,000 after purchasing an additional 4,304,436 shares during the last quarter. State Street Corp grew its stake in shares of Walmart by 1.2% during the third quarter. State Street Corp now owns 184,805,978 shares of the retailer's stock valued at $19,046,104,000 after buying an additional 2,242,364 shares during the last quarter. Geode Capital Management LLC raised its holdings in shares of Walmart by 6.8% in the fourth quarter. Geode Capital Management LLC now owns 103,010,709 shares of the retailer's stock worth $11,426,753,000 after buying an additional 6,517,394 shares during the period. Norges Bank purchased a new stake in shares of Walmart in the fourth quarter worth approximately $6,458,529,000. Finally, Fisher Asset Management LLC lifted its stake in shares of Walmart by 0.8% during the 4th quarter. Fisher Asset Management LLC now owns 40,626,852 shares of the retailer's stock worth $4,526,238,000 after acquiring an additional 328,229 shares during the last quarter. Institutional investors own 26.76% of the company's stock.

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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