Walmart (NASDAQ:WMT) Stock Jumps 3.5% – Should You Buy?

Walmart Inc. (NASDAQ:WMT)’s share price shot up 3.5% during mid-day trading on Wednesday. The stock traded as high as $116.24 and last traded at $116.16. 25,699,710 shares traded hands during trading, an increase of 2% from the average daily volume of 25,096,908 shares. The stock had previously closed at $112.28.

More Walmart News

Here are the key news stories impacting Walmart this week:

• Positive Sentiment: Defensive-sector rotation supported the stock. Investors favored Walmart, Costco and Target as inflation raised concerns about the economy and increased demand for businesses selling essential goods. Walmart Advances 3% as Inflation Data Sends Money Into Defensives; Costco and Target Edge Higher
• Positive Sentiment: Market preference for non-AI companies provided an additional catalyst. Walmart was among consumer-staples names attracting capital as investors sought more stable earnings and cash flows. Walmart Stock Moves Higher: What’s Happening?
• Positive Sentiment: Expanded employee healthcare benefits may improve workforce retention. Beginning in 2027, Walmart plans to provide more than 250 prescriptions at no cost to eligible employees, including certain insulin, inhaler and GLP-1 treatments. The initiative could support hiring and retention, although it also adds to operating expenses. Walmart to cover some GLP-1s, inhalers and insulin for employees at no cost as it expands benefits
• Neutral Sentiment: New fulfillment capacity could strengthen e-commerce. Walmart opened a more than 900,000-square-foot automated fulfillment center in Stockton, California, designed to shorten order processing and expand West Coast shipping reach. The investment may improve efficiency over time but requires upfront capital spending. Investors Are Paying More for Walmart Than Amazon. Here’s Why That Doesn’t Add Up.
• Negative Sentiment: Valuation remains a risk. Analysts highlighted Walmart’s elevated forward P/E, while rising costs and potential margin pressure could limit further upside. A valuation model also characterized the shares as overvalued, creating a counterweight to today’s defensive buying. Walmart Trading at 36.32X Forward P/E: How to Play WMT Stock?

Analysts Set New Price Targets

Several analysts have commented on WMT shares. Freedom Broker upgraded shares of Walmart from a “hold” rating to a “strong-buy” rating in a research note on Thursday, August 20th. Jefferies Financial Group reaffirmed a “buy” rating and set a $120.00 price objective on shares of Walmart in a report on Friday, August 21st. Freedom Capital raised shares of Walmart from a “hold” rating to a “strong-buy” rating in a research note on Thursday, August 20th. Deutsche Bank Aktiengesellschaft set a $113.00 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 target on shares of Walmart in a research report on Friday, August 21st. Three equities 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 stock. Based on data from MarketBeat.com, Walmart presently has an average rating of “Moderate Buy” and an average target price of $131.74.

Walmart Stock Up 3.5%

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 50-day simple moving average of $108.49 and a 200-day simple moving average of $116.29. The firm has a market cap of $921.58 billion, a PE ratio of 41.94, a price-to-earnings-growth ratio of 4.31 and a beta of 0.58.

Walmart (NASDAQ:WMT) last announced its quarterly earnings data on Thursday, August 20th. The retailer reported $0.81 EPS for the quarter, beating 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 for the quarter, compared to the consensus estimate of $186.64 billion. During the same quarter in the prior year, the company posted $0.68 EPS. Walmart’s quarterly revenue was up 5.9% on a year-over-year basis. Walmart has set its Q3 2027 guidance at 0.620-0.640 EPS and its FY 2027 guidance at 2.800-2.870 EPS. Analysts expect that Walmart Inc. will post 2.87 earnings per share for the current fiscal year.

Insider Activity at Walmart

In related news, EVP Daniel Danker sold 50,644 shares of Walmart stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $105.35, for a total transaction of $5,335,345.40. Following the completion of the sale, the executive vice president owned 201,672 shares in the company, valued at $21,246,145.20. This trade represents a 20.07% decrease in their position. The sale was disclosed in a filing with the SEC, which is available 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 Daniel Bartlett sold 3,990 shares of the company’s stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $104.41, for a total transaction of $416,595.90. Following the completion of the transaction, the executive vice president owned 618,359 shares in the company, valued at $64,562,863.19. This represents a 0.64% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 81,219 shares of company stock worth $8,604,429. 0.09% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. MFA Wealth Services lifted its position in shares of Walmart by 0.7% during the 1st quarter. MFA Wealth Services now owns 10,909 shares of the retailer’s stock worth $1,356,000 after buying an additional 80 shares during the period. Realta Investment Advisors raised its holdings in Walmart by 2.0% during the 1st quarter. Realta Investment Advisors now owns 4,089 shares of the retailer’s stock worth $508,000 after purchasing an additional 81 shares during the last quarter. Compton Financial Group LLC grew its stake in shares of Walmart by 4.1% during the first quarter. Compton Financial Group LLC now owns 2,081 shares of the retailer’s stock worth $259,000 after purchasing an additional 82 shares during the period. Strait & Sound Wealth Management LLC increased its holdings in shares of Walmart by 0.3% in the first quarter. Strait & Sound Wealth Management LLC now owns 25,443 shares of the retailer’s stock worth $3,162,000 after acquiring an additional 84 shares in the last quarter. Finally, Lodestar Private Asset Management LLC boosted its holdings in shares of Walmart by 0.9% in the first quarter. Lodestar Private Asset Management LLC now owns 9,577 shares of the retailer’s stock valued at $1,190,000 after buying an additional 87 shares during the period. Hedge funds and other institutional investors own 26.76% of the company’s stock.

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.