Walmart (NASDAQ:WMT) Trading 1.3% Higher – What’s Next?

Walmart Inc. (NASDAQ:WMT) shot up 1.3% during trading on Friday . The company traded as high as $107.21 and last traded at $107.15. 16,647,802 shares were traded during mid-day trading, a decline of 35% from the average daily volume of 25,486,074 shares. The stock had previously closed at $105.73.

Walmart News Summary

Here are the key news stories impacting Walmart this week:

• Positive Sentiment: DA Davidson reaffirmed its “buy” rating and set a $132 price target, implying meaningful upside from recent levels. BTIG Research likewise maintained a “buy” rating with a $140 target. These endorsements suggest analysts view the recent selloff as an attractive entry point. Analyst rating reports
• Positive Sentiment: Walmart is being highlighted as a potential defensive holding if persistent inflation causes the Federal Reserve to raise interest rates again. Its essential-goods exposure and dividend history could make the stock more attractive relative to economically sensitive companies. 3 Dividend Kings to Buy if the Fed Starts Raising Rates
• Positive Sentiment: New initiatives could strengthen Walmart’s convenience and omnichannel proposition. The retailer is expanding tap-to-pay support for Apple Pay, Google Pay, Samsung Pay, contactless cards and wearables, while adding Papa John’s to its restaurant-delivery partner network. Walmart Expands Tap to Pay
• Neutral Sentiment: Walmart’s recent fashion and brand-marketing activity, including a New York Fashion Week event, may improve visibility but is unlikely to materially affect near-term earnings. Walmart New York Fashion Week event
• Neutral Sentiment: Reported September short-interest data shows zero shares and a zero-day days-to-cover ratio, but the figures appear incomplete or unreliable and provide no meaningful trading signal.
• Negative Sentiment: Analysts caution that Walmart’s roughly 14% six-month decline does not eliminate concerns about its premium valuation, rising costs and weaker earnings estimates. Higher interest rates could also pressure consumers and test the stock’s technical support. Should You Buy Walmart Stock After a 14% Decline in Six Months?

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on WMT shares. JPMorgan Chase & Co. cut their target price on Walmart from $137.00 to $125.00 and set an “overweight” rating for the company in a research note on Friday, August 21st. DA Davidson reaffirmed a “buy” rating and set a $132.00 target price on shares of Walmart in a research note on Thursday. Guggenheim set a $130.00 target price on shares of Walmart and gave the company a “buy” rating in a report on Friday, August 21st. Citigroup dropped their price target on shares of Walmart from $147.00 to $132.00 and set a “buy” rating for the company in a research note on Friday, August 21st. Finally, BNP Paribas Exane restated an “outperform” rating and set a $137.00 price target (down from $146.00) on shares of Walmart in a report on Friday, August 21st. Three investment analysts have rated the stock with a Strong Buy rating, thirty-two have given a Buy rating and four have given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $131.88.

Walmart Stock Up 1.3%

The stock has a market capitalization of $850.10 billion, a price-to-earnings ratio of 38.68, a P/E/G ratio of 4.09 and a beta of 0.59. The business has a 50-day moving average of $110.24 and a 200-day moving average of $118.88. The company has a debt-to-equity ratio of 0.41, a quick ratio of 0.23 and a current ratio of 0.77.

Walmart (NASDAQ:WMT) last announced its earnings results on Thursday, August 20th. The retailer reported $0.81 earnings per share for the quarter, topping the consensus estimate 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 during the quarter, compared to analyst estimates of $186.64 billion. During the same quarter last year, the firm posted $0.68 earnings per share. Walmart’s 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. On average, sell-side analysts expect that Walmart Inc. will post 2.87 EPS for the current year.

Insider Buying and Selling

In other Walmart news, EVP Christopher Nicholas sold 2,900 shares of the business’s stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $106.34, for a total value of $308,386.00. Following the sale, the executive vice president owned 569,153 shares of the company’s stock, valued at $60,523,730.02. The trade was a 0.51% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Daniel J. Bartlett sold 3,950 shares of Walmart stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $105.14, for a total value of $415,303.00. Following the completion of the sale, the executive vice president directly owned 622,349 shares of the company’s stock, valued at $65,433,773.86. The trade was a 0.63% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 69,264 shares of company stock valued at $7,401,242. Company insiders own 0.09% of the company’s stock.

Hedge Funds Weigh In On Walmart

Several institutional investors have recently bought and sold shares of WMT. California State Teachers Retirement System raised its stake in shares of Walmart by 11,189.0% in the second quarter. California State Teachers Retirement System now owns 755,604,916 shares of the retailer’s stock valued at $85,579,813,000 after acquiring an additional 748,911,635 shares in the last quarter. Bank of America Corp DE purchased a new stake in Walmart during the 2nd quarter worth about $7,455,131,000. Norges Bank acquired a new stake in Walmart in the 4th quarter valued at about $6,458,529,000. Legal & General Group Plc purchased a new position in shares of Walmart in the 2nd quarter valued at about $2,905,655,000. Finally, AQR Capital Management LLC boosted its stake in shares of Walmart by 188.1% in the 3rd quarter. AQR Capital Management LLC now owns 11,663,172 shares of the retailer’s stock valued at $1,199,907,000 after buying an additional 7,614,172 shares during the period. 26.76% of the stock is owned by institutional investors and hedge funds.

About Walmart

Walmart Inc is a multinational retail and technology company that operates supercenters, discount stores, neighborhood markets, e-commerce platforms and membership warehouse clubs. Its merchandise includes groceries, apparel, electronics, home goods, health and beauty products, general merchandise and other consumer products.

Founded by Sam Walton in 1962 and incorporated in 1969, Walmart is headquartered in Bentonville, Arkansas. The company serves customers through operations in the United States and international markets, including Mexico, Canada, China, India and several countries in Central America and Africa.