Walmart (NYSE:WMT) Earns "Outperform" Rating from Royal Bank Of Canada

Key Points

• Walmart's stock has been rated as "outperform" by the Royal Bank of Canada, with a price target of $106, suggesting a potential upside of 7.85% from its previous close.
• Despite a recent earnings miss, with reported EPS of $0.68 compared to a consensus estimate of $0.74, analysts maintain a consensus rating of "Buy" for Walmart stock.
• Institutional investors continue to show interest in Walmart, with several hedge funds significantly increasing their positions in the retailer during the second quarter of 2023.

Walmart (NYSE:WMT - Get Free Report)'s stock had its "outperform" rating reissued by equities research analysts at Royal Bank Of Canada in a research report issued to clients and investors on Friday,Benzinga reports. They presently have a $106.00 price target on the retailer's stock. Royal Bank Of Canada's target price would indicate a potential upside of 7.85% from the company's previous close.

A number of other research firms have also commented on WMT. Oppenheimer raised their price objective on Walmart from $110.00 to $115.00 and gave the stock an "outperform" rating in a research note on Wednesday, August 13th. Wall Street Zen upgraded Walmart from a "hold" rating to a "buy" rating in a research note on Monday, May 12th. KeyCorp raised their price objective on Walmart from $105.00 to $110.00 and gave the stock an "overweight" rating in a research note on Monday, June 9th. DA Davidson restated a "buy" rating and set a $117.00 price objective on shares of Walmart in a research note on Friday, May 16th. Finally, Erste Group Bank upgraded Walmart from a "hold" rating to a "buy" rating in a research note on Tuesday, August 5th. One investment analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Buy" and a consensus price target of $110.04.

Walmart Price Performance

Shares of NYSE WMT opened at $98.2850 on Friday. The firm has a market cap of $784.36 billion, a P/E ratio of 42.22, a price-to-earnings-growth ratio of 4.93 and a beta of 0.66. The company has a current ratio of 0.78, a quick ratio of 0.22 and a debt-to-equity ratio of 0.47. Walmart has a 1-year low of $75.01 and a 1-year high of $105.30. The business's 50 day moving average is $97.94 and its 200-day moving average is $95.65.

Walmart (NYSE:WMT - Get Free Report) last posted its quarterly earnings data on Thursday, August 21st. The retailer reported $0.68 EPS for the quarter, missing analysts' consensus estimates of $0.74 by ($0.06). Walmart had a return on equity of 21.76% and a net margin of 2.75%.The company had revenue of $169.34 billion for the quarter, compared to the consensus estimate of $174.02 billion. During the same quarter last year, the business earned $0.67 EPS. Walmart's revenue was up 4.8% on a year-over-year basis. Walmart has set its Q3 2026 guidance at 0.580-0.600 EPS. FY 2026 guidance at 2.520-2.620 EPS. Equities research analysts predict that Walmart will post 2.55 earnings per share for the current year.

Insider Activity at Walmart

In related news, CEO C Douglas Mcmillon sold 19,416 shares of the firm's stock in a transaction on Thursday, July 24th. The stock was sold at an average price of $95.58, for a total transaction of $1,855,781.28. Following the sale, the chief executive officer owned 4,412,398 shares of the company's stock, valued at $421,737,000.84. This trade represents a 0.44% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, EVP Daniel J. Bartlett sold 1,655 shares of the firm's stock in a transaction on Friday, August 15th. The shares were sold at an average price of $100.38, for a total value of $166,128.90. Following the sale, the executive vice president directly owned 647,578 shares in the company, valued at approximately $65,003,879.64. This trade represents a 0.25% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 88,841 shares of company stock worth $8,565,205 over the last 90 days. 0.10% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of WMT. Clarion Wealth Managment Partners LLC acquired a new position in Walmart during the 2nd quarter worth about $305,000. Thompson Davis & CO. Inc. lifted its holdings in Walmart by 524.2% during the 2nd quarter. Thompson Davis & CO. Inc. now owns 44,642 shares of the retailer's stock worth $4,365,000 after buying an additional 37,490 shares during the period. North Dallas Bank & Trust Co. acquired a new position in Walmart during the 2nd quarter worth about $1,758,000. Newbridge Financial Services Group Inc. lifted its holdings in Walmart by 10.0% during the 2nd quarter. Newbridge Financial Services Group Inc. now owns 56,176 shares of the retailer's stock worth $5,493,000 after buying an additional 5,125 shares during the period. Finally, Marex Group plc acquired a new position in shares of Walmart in the 2nd quarter valued at about $600,000. 26.76% of the stock is owned by institutional investors and hedge funds.

About Walmart

Walmart Inc engages in the operation of retail, wholesale, other units, and eCommerce worldwide. The company operates through three segments: Walmart U.S., Walmart International, and Sam's Club. It operates supercenters, supermarkets, hypermarkets, warehouse clubs, cash and carry stores, and discount stores under Walmart and Walmart Neighborhood Market brands; membership-only warehouse clubs; ecommerce websites, such as walmart.com.mx, walmart.ca, flipkart.com, PhonePe and other sites; and mobile commerce applications.

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