Walmart (NASDAQ:WMT) Shares Down 1.8% on Analyst Downgrade

Walmart Inc. (NASDAQ:WMT)’s share price fell 1.8% during trading on Tuesday after Mizuho lowered their price target on the stock from $130.00 to $125.00. Mizuho currently has an outperform rating on the stock. Walmart traded as low as $105.35 and last traded at $106.80. 24,663,749 shares were traded during mid-day trading, a decline of 3% from the average session volume of 25,358,092 shares. The stock had previously closed at $108.73.

WMT has been the topic of a number of other research reports. Roth Capital reissued a “buy” rating on shares of Walmart in a research note on Friday, August 21st. Piper Sandler reaffirmed an “overweight” rating and set a $128.00 price objective (down from $137.00) on shares of Walmart in a report on Friday, August 21st. KeyCorp reiterated an “overweight” rating on shares of Walmart in a research report on Thursday, September 10th. BTIG Research reissued a “buy” rating and set a $140.00 target price on shares of Walmart in a research note on Thursday, September 10th. Finally, Freedom Capital upgraded shares of Walmart from a “hold” rating to a “strong-buy” rating in a research report on Thursday, August 20th. Three analysts have rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $131.74.

Insider Buying and Selling at Walmart

In other news, EVP Daniel Danker sold 50,644 shares of the stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $105.35, for a total value of $5,335,345.40. Following the completion of the sale, the executive vice president directly owned 201,672 shares in the company, valued at $21,246,145.20. This represents a 20.07% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 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 Christopher Nicholas sold 2,900 shares of the firm’s stock in a transaction dated Thursday, September 17th. The stock was sold at an average price of $106.65, for a total transaction of $309,285.00. Following the completion of the transaction, the executive vice president directly owned 566,253 shares in the company, valued at approximately $60,390,882.45. This represents a 0.51% 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. Insiders sold 81,004 shares of company stock worth $8,601,724 over the last three months. 0.09% of the stock is owned by corporate insiders.

Walmart News Summary

Here are the key news stories impacting Walmart this week:

• Positive Sentiment: Membership growth could support profits: Record membership revenue from Walmart+, Sam’s Club and international operations may increase customer engagement, strengthen e-commerce economics and provide a higher-margin recurring revenue stream. Walmart’s Membership Gains Scale: Is It the Next Major Profit Engine?
• Positive Sentiment: Expanded AI-driven shopping access: Meta is adding Walmart to the partners supported by its Muse AI shopping agent. The arrangement could generate incremental online sales and customer discovery, although Meta is expected to monetize transactions through fees. Meta’s Muse Is Taking Aim at E-Commerce, But Amazon Isn’t Playing Along
• Positive Sentiment: Customer-trust positioning: CEO John Furner said Walmart will not use artificial intelligence to set personalized prices, potentially differentiating the retailer amid concerns about algorithmic pricing and supporting its value-focused brand. Walmart CEO says company won’t use AI to set personalized prices
• Neutral Sentiment: AI signage restrictions: Walmart has prohibited stores from using generative AI to create display signs. The policy may improve consistency and reduce inaccurate or low-quality messaging, but it also limits a potential labor-saving use of AI. Walmart bans AI slop signs in stores
• Negative Sentiment: Lower valuation benchmark: Mizuho cut its Walmart price target from $130 to $125 while maintaining an “outperform” rating. The continued bullish rating is supportive, but the lower target may weigh on sentiment, particularly with the shares trading at a high earnings multiple. Mizuho lowers Walmart price target
• Negative Sentiment: Delivery profitability remains uncertain: Store-fulfilled delivery increased about 40%, but small “forgotten grocery” orders could carry high picking and delivery costs. Investors are watching whether fees and merchandise margins can offset those expenses. Walmart Delivers Forgotten Groceries Fast

Institutional Investors Weigh In On Walmart

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Merkkuri Wealth Advisors LLC acquired a new stake in shares of Walmart in the 1st quarter worth $29,000. Montgomery Financial Services LLC purchased a new stake in shares of Walmart in the second quarter valued at about $32,000. Sankala Group LLC acquired a new stake in Walmart during the fourth quarter worth about $33,000. Turim 21 Investimentos Ltda. acquired a new stake in Walmart during the first quarter worth about $37,000. Finally, Pingora Partners LLC purchased a new position in Walmart during the second quarter worth about $34,000. Institutional investors and hedge funds own 26.76% of the company’s stock.

Walmart Stock Down 1.8%

The company has a debt-to-equity ratio of 0.41, a current ratio of 0.77 and a quick ratio of 0.23. The company has a market capitalization of $847.32 billion, a PE ratio of 38.56, a P/E/G ratio of 4.12 and a beta of 0.59. The business’s 50 day simple moving average is $109.17 and its 200 day simple moving average is $117.47.

Walmart (NASDAQ:WMT) last announced its quarterly earnings results on Thursday, August 20th. The retailer reported $0.81 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.74 by $0.07. The business had revenue of $187.94 billion during the quarter, compared to the consensus estimate of $186.64 billion. Walmart had a net margin of 3.00% and a return on equity of 21.83%. The business’s revenue was up 5.9% compared to the same quarter last year. During the same quarter last year, the firm earned $0.68 EPS. Walmart has set its Q3 2027 guidance at 0.620-0.640 EPS and its FY 2027 guidance at 2.800-2.870 EPS. As a group, analysts anticipate that Walmart Inc. will post 2.87 earnings per share for the current fiscal year.

About Walmart

Walmart Inc (NASDAQ: WMT) is a multinational retailer that operates supercenters, discount stores, neighborhood markets, warehouse clubs and e-commerce platforms. Its merchandise includes groceries, apparel, electronics, home goods, health and wellness products, household essentials and general merchandise. Walmart also provides services such as grocery pickup and delivery, pharmacy services, financial products and digital advertising.

The company serves customers through its Walmart U.S., Walmart International and Sam’s Club segments.