Walmart (NASDAQ:WMT) Stock Jumps 2% – Still a Buy?

Walmart Inc. (NASDAQ:WMT) shares traded up 2% on Tuesday. The stock traded as high as $107.55 and last traded at $107.20. 21,654,221 shares changed hands during mid-day trading, a decline of 14% from the average session volume of 25,312,521 shares. The stock had previously closed at $105.07.

Walmart News Roundup

Here are the key news stories impacting Walmart this week:

• Positive Sentiment: Advertising and e-commerce growth: Walmart Connect revenue increased 43% excluding VIZIO, while U.S. e-commerce sales rose 24% year over year in fiscal 2027’s second quarter. Growth in advertising, membership and delivery could improve Walmart’s digital margins and reduce reliance on low-margin retail sales. Can Walmart Connect Keep Powering WMT’s Digital Profit Growth?
• Positive Sentiment: Expanded television advertising opportunity: A partnership with Warner Bros. represents Walmart’s effort to capture a larger share of television advertising spending. The initiative could broaden Walmart Connect’s reach and create another source of higher-margin revenue. Walmart moves to grab a bigger chunk of the TV ad business
• Positive Sentiment: Strong visibility with AI shopping agents: Walmart and Costco are reportedly among the retailers most frequently cited by AI agents. That recognition could support customer acquisition and digital sales, though the broader AI-driven shopping market is still developing. Which Retailers Do AI Agents Cite the Most?
• Neutral Sentiment: Unusually heavy call-option activity: Investors purchased 267,098 call options, approximately 99% above average daily call volume. This indicates increased bullish speculation or hedging, but options activity alone does not establish a durable change in fundamentals.
• Negative Sentiment: Valuation could limit upside: Walmart’s roughly 39-times earnings multiple and PEG ratio near 4 suggest the market already prices in substantial growth. Investors may therefore demand continued strong execution from Connect, e-commerce and membership businesses before assigning the stock a higher valuation.
• Neutral Sentiment: Dividend appeal is limited: Walmart has raised its dividend for 53 consecutive years, but its yield is below 1%, making the stock more dependent on earnings growth and capital appreciation than income.

Wall Street Analyst Weigh In

WMT has been the topic of several research analyst reports. Cantor Fitzgerald upgraded Walmart to a “buy” rating in a research note on Friday, August 21st. UBS Group dropped their price objective on shares of Walmart from $141.00 to $130.00 and set a “buy” rating on the stock in a report on Friday, August 21st. TD Cowen reiterated a “buy” rating on shares of Walmart in a research note on Friday, August 21st. Wolfe Research reaffirmed an “outperform” rating and set a $115.00 target price on shares of Walmart in a report on Friday, August 21st. Finally, BMO Capital Markets reiterated an “outperform” rating and issued a $126.00 price objective 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 assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $131.74.

Walmart Trading Up 2.0%

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 company’s 50-day moving average is $108.67 and its 200-day moving average is $116.75. The stock has a market capitalization of $850.50 billion, a price-to-earnings ratio of 38.70, a PEG ratio of 3.98 and a beta of 0.58.

Walmart (NASDAQ:WMT) last issued its quarterly earnings data 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 return on equity of 21.83% and a net margin of 3.00%.The company had revenue of $187.94 billion during the quarter, compared to analyst estimates of $186.64 billion. During the same period in the prior year, the business posted $0.68 earnings per share. The firm’s revenue for the quarter 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. Research analysts anticipate that Walmart Inc. will post 2.87 earnings per share for the current fiscal year.

Insider Buying and Selling at Walmart

In related news, EVP Christopher Nicholas sold 2,900 shares of the company’s stock in a transaction that occurred on Thursday, September 17th. The stock was sold at an average price of $106.65, for a total value of $309,285.00. Following the completion of the transaction, the executive vice president directly owned 566,253 shares of the company’s stock, valued at $60,390,882.45. This represents a 0.51% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO John R. Furner sold 13,125 shares of the firm’s stock in a transaction dated Thursday, September 17th. The stock was sold at an average price of $106.66, for a total value of $1,399,912.50. Following the transaction, the chief executive officer directly owned 647,912 shares in the company, valued at approximately $69,106,293.92. The trade was a 1.99% 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. Over the last ninety days, insiders have sold 81,219 shares of company stock worth $8,604,429. 0.09% of the stock is currently owned by company insiders.

Institutional Trading of Walmart

A number of hedge funds have recently added to or reduced their stakes in the stock. Merkkuri Wealth Advisors LLC purchased a new position in Walmart in the first quarter valued at about $29,000. Montgomery Financial Services LLC purchased a new position in shares of Walmart during the 2nd quarter worth about $32,000. Sankala Group LLC purchased a new position in shares of Walmart in the 4th quarter worth $33,000. Turim 21 Investimentos Ltda. acquired a new position in Walmart in the first quarter valued at $37,000. Finally, Pingora Partners LLC purchased a new stake in Walmart during the second quarter valued at about $34,000. 26.76% of the stock is owned by institutional investors and hedge funds.

Walmart Company Profile

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.