Walmart (NASDAQ:WMT) Trading Down 1% – Should You Sell?

Walmart Inc. (NASDAQ:WMT) dropped 1% during mid-day trading on Tuesday . The stock traded as low as $105.66 and last traded at $106.05. 21,417,317 shares traded hands during trading, a decline of 16% from the average session volume of 25,618,891 shares. The stock had previously closed at $107.14.

Key Walmart News

Here are the key news stories impacting Walmart this week:

• Positive Sentiment: Walmart agreed to pay $50 million to settle a federal opioid case—far below the potential multibillion-dollar liability previously discussed. The relatively modest settlement reduces legal uncertainty and limits the financial impact. Walmart Settles a Potential Multibillion-Dollar Opioid Case for $50 Million
• Positive Sentiment: TD Cowen identified Walmart as one of the retailers best positioned to benefit from artificial intelligence, including AI-driven shopping, personalization and operational efficiencies. Walmart, Ulta and Other Retailers That Can Win With AI
• Positive Sentiment: Walmart’s expanding advertising business is increasing its exposure to higher-margin revenue as digital sales grow. Analysts view this as a potential driver of earnings quality, although near-term investment costs remain a concern. Walmart’s Ad Business Expands
• Positive Sentiment: Jim Cramer said he would buy Walmart after its recent underperformance, reinforcing the view that the retailer’s defensive characteristics and long-term fundamentals remain attractive. Jim Cramer Says Buy Walmart
• Neutral Sentiment: Walmart was highlighted as a defensive stock to watch ahead of CPI data and the Federal Reserve’s interest-rate decision. Its grocery scale and relatively stable demand may support the shares if market volatility increases. Five Defensive Stocks to Watch
• Negative Sentiment: Despite solid operating momentum, Walmart trades at a premium earnings multiple. Analysts also expect spending related to its Vibe initiative to pressure fiscal 2027 profit growth, potentially limiting near-term upside.

Analyst Ratings Changes

Several equities research analysts have weighed in on WMT shares. Royal Bank Of Canada decreased their price target on shares of Walmart from $137.00 to $131.00 and set an “outperform” rating for the company in a research note on Friday, August 21st. Truist Financial set a $114.00 target price on Walmart and gave the company a “buy” rating in a research report on Friday, August 21st. Oppenheimer reiterated a “market perform” rating on shares of Walmart in a report on Tuesday, August 25th. Telsey Advisory Group reissued an “outperform” rating and issued a $130.00 price objective (down from $140.00) on shares of Walmart in a research note on Friday, August 21st. Finally, BNP Paribas Exane reaffirmed an “outperform” rating and set a $137.00 target price (down from $146.00) on shares of Walmart in a research report on Friday, August 21st. Three research analysts have rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $131.88.

Walmart Price Performance

The company has a debt-to-equity ratio of 0.41, a quick ratio of 0.23 and a current ratio of 0.77. The business has a 50 day simple moving average of $110.66 and a 200-day simple moving average of $119.36. The firm has a market cap of $841.37 billion, a price-to-earnings ratio of 38.29, a P/E/G ratio of 4.09 and a beta of 0.59.

Walmart (NASDAQ:WMT) last issued its quarterly earnings data on Thursday, August 20th. The retailer reported $0.81 EPS for the quarter, topping the consensus estimate of $0.74 by $0.07. The firm had revenue of $187.94 billion during the quarter, compared to the consensus estimate of $186.64 billion. Walmart had a return on equity of 21.83% and a net margin of 3.00%.The company’s quarterly revenue was up 5.9% compared to the same quarter last year. During the same period in the prior year, the business posted $0.68 earnings per share. 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 expect that Walmart Inc. will post 2.87 earnings per share for the current year.

Insider Buying and Selling

In other news, EVP Daniel Danker sold 50,644 shares of Walmart stock in a transaction 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 completion of the transaction, the executive vice president directly owned 201,672 shares in the company, valued at approximately $21,246,145.20. The trade was a 20.07% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 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. Also, EVP David Guggina sold 11,978 shares of the stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $119.82, for a total value of $1,435,203.96. Following the sale, the executive vice president directly owned 125,067 shares in the company, valued at $14,985,527.94. This trade represents a 8.74% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 81,242 shares of company stock valued at $8,836,446 in the last ninety days. 0.09% of the stock is owned by company insiders.

Hedge Funds Weigh In On Walmart

A number of large investors have recently modified their holdings of WMT. Brighton Jones LLC grew its position in shares of Walmart by 28.8% during the 4th quarter. Brighton Jones LLC now owns 98,150 shares of the retailer’s stock valued at $8,868,000 after purchasing an additional 21,939 shares in the last quarter. Revolve Wealth Partners LLC boosted its stake in Walmart by 5.8% during the fourth quarter. Revolve Wealth Partners LLC now owns 8,849 shares of the retailer’s stock valued at $800,000 after buying an additional 485 shares during the period. Peterson Wealth Management grew its position in Walmart by 3.5% during the first quarter. Peterson Wealth Management now owns 50,307 shares of the retailer’s stock worth $4,416,000 after buying an additional 1,715 shares in the last quarter. Sivia Capital Partners LLC increased its stake in Walmart by 0.9% in the 2nd quarter. Sivia Capital Partners LLC now owns 13,008 shares of the retailer’s stock worth $1,272,000 after acquiring an additional 116 shares during the last quarter. Finally, Schnieders Capital Management LLC. increased its stake in Walmart by 1.2% in the 2nd quarter. Schnieders Capital Management LLC. now owns 91,341 shares of the retailer’s stock worth $8,931,000 after acquiring an additional 1,048 shares during the last quarter. 26.76% of the stock is currently owned by institutional investors.

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.