Walmart (NASDAQ:WMT) Shares Up 3.4% – Time to Buy?

by · The Markets Daily

Walmart Inc. (NASDAQ:WMT – Get Free Report) shares shot up 3.4% on Monday. The company traded as high as $127.94 and last traded at $127.69. 24,852,619 shares changed hands during trading, an increase of 0% from the average session volume of 24,809,369 shares. The stock had previously closed at $123.51.

More Walmart News

Here are the key news stories impacting Walmart this week:

  • Positive Sentiment: Earnings expectations remain favorable: Walmart’s history of exceeding estimates, combined with factors tracked by Zacks, is increasing confidence that the retailer could again outperform consensus in its next quarterly report. Why Walmart Is Poised to Beat Earnings Estimates Again
  • Positive Sentiment: AI and e-commerce offer growth catalysts: Walmart’s expanded Sparky AI shopping assistant could improve product discovery, conversion, and holiday spending per order. Separately, Walmart’s e-commerce sales are reportedly growing faster than Amazon’s, helping the company gain online market share. Walmart’s Expanded Sparky AI Walmart E-Commerce Growth
  • Positive Sentiment: Value positioning is supporting demand: Walmart and Costco are gaining grocery market share as consumers seek lower prices to offset broader household-cost pressures, potentially supporting traffic and sales. Grocery Wars Update
  • Neutral Sentiment: Broader market momentum: Walmart was among large-cap stocks trading higher as investors renewed interest in technology and cloud-related equities following Amazon’s earnings reaction. The report provides limited company-specific news. Amazon and Walmart Market Update
  • Neutral Sentiment: Other developments: TD Cowen initiated research coverage, while Walmart announced a holiday donation-matching campaign with Operation Homefront. These may improve visibility and goodwill but are unlikely to materially affect near-term earnings. TD Cowen Initiates Walmart Coverage Walmart and Operation Homefront
  • Negative Sentiment: Valuation is a concern: Commentary highlights Walmart’s roughly 43-times earnings valuation, leaving the stock vulnerable if growth slows or market volatility increases. Walmart’s Valuation Risk
  • Negative Sentiment: Flipkart investigation creates governance risk: Walmart is reportedly probing whistleblower allegations that employees at its Indian e-commerce unit solicited vendor kickbacks. The inquiry could create reputational, compliance, or financial risks, although its outcome remains uncertain. Walmart Probes Flipkart Claims

Analyst Ratings Changes

Several equities analysts have recently issued reports on WMT shares. Wells Fargo & Company lowered their price objective on shares of Walmart from $140.00 to $120.00 and set an “overweight” rating on the stock in a research note on Friday, August 21st. Guggenheim set a $130.00 price objective on Walmart and gave the stock a “buy” rating in a research note on Friday, August 21st. BMO Capital Markets restated an “outperform” rating and issued a $126.00 target price on shares of Walmart in a report on Friday, August 21st. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Walmart in a research report on Thursday. Finally, BTIG Research reaffirmed a “buy” rating and set a $140.00 target price on shares of Walmart in a report on Thursday, September 10th. Four analysts have rated the stock with a Strong Buy rating, thirty-two have assigned a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, Walmart currently has an average rating of “Buy” and a consensus target price of $132.41.

Check Out Our Latest Stock Analysis on Walmart

Walmart Price Performance

The company’s 50-day simple moving average is $110.23 and its 200 day simple moving average is $118.40. The company has a quick ratio of 0.23, a current ratio of 0.77 and a debt-to-equity ratio of 0.41. The stock has a market capitalization of $1.01 trillion, a price-to-earnings ratio of 46.10, a P/E/G ratio of 4.46 and a beta of 0.53.

Walmart (NASDAQ:WMT – Get Free Report) last released its quarterly earnings results on Thursday, August 20th. The retailer reported $0.81 EPS for the quarter, beating analysts’ consensus estimates of $0.74 by $0.07. Walmart had a net margin of 3.00% and a return on equity of 21.83%. The company had revenue of $187.94 billion for the quarter, compared to analyst estimates of $186.64 billion. During the same quarter last year, the firm posted $0.68 earnings per share. The company’s quarterly revenue was up 5.9% compared to the same quarter last year. Walmart has set its Q3 2027 guidance at 0.620-0.640 EPS and its FY 2027 guidance at 2.800-2.870 EPS. Equities research analysts forecast that Walmart Inc. will post 2.87 EPS for the current year.

Insider Transactions at Walmart

In other news, EVP Christopher Nicholas sold 2,900 shares of the firm’s stock in a transaction dated Thursday, October 15th. The shares were sold at an average price of $120.60, for a total transaction of $349,740.00. Following the completion of the transaction, the executive vice president directly owned 563,353 shares of the company’s stock, valued at approximately $67,940,371.80. This trade represents a 0.51% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Daniel Danker sold 50,644 shares of the firm’s stock in a transaction that occurred on Wednesday, August 26th. The stock was sold at an average price of $105.35, for a total value of $5,335,345.40. Following the transaction, the executive vice president owned 201,672 shares of the company’s stock, valued at $21,246,145.20. This trade represents a 20.07% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 98,534 shares of company stock valued at $10,692,443 over the last 90 days. Corporate insiders own 0.09% of the company’s stock.

Institutional Investors Weigh In On Walmart

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Bell & Brown Wealth Advisors LLC purchased a new position in Walmart in the 2nd quarter valued at $6,451,000. Advisortrust Partners LLC grew its holdings in shares of Walmart by 20.2% during the first quarter. Advisortrust Partners LLC now owns 67,142 shares of the retailer’s stock worth $8,344,000 after buying an additional 11,283 shares in the last quarter. Bank of America Corp DE purchased a new stake in shares of Walmart during the second quarter worth $7,455,131,000. HORAN Wealth LLC raised its position in shares of Walmart by 55.7% in the first quarter. HORAN Wealth LLC now owns 81,544 shares of the retailer’s stock valued at $9,931,000 after buying an additional 29,184 shares during the last quarter. Finally, Park National Corp OH raised its position in shares of Walmart by 282.9% in the third quarter. Park National Corp OH now owns 119,865 shares of the retailer’s stock valued at $12,456,000 after buying an additional 88,562 shares during the last quarter. Institutional investors own 26.76% of the company’s stock.

About Walmart

(Get Free Report)

Walmart Inc (NASDAQ:WMT) operates a global retail business through a network of supercenters, supermarkets, discount stores, neighborhood markets, warehouse clubs and e-commerce platforms. Its stores and websites sell a broad assortment of merchandise, including groceries, consumables, health and wellness products, apparel, electronics, home goods, toys and other general merchandise.

The company organizes its operations into Walmart U.S., Walmart International and Sam’s Club U.S. Walmart U.S.

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