Walmart (NYSE:WMT) Shares Rise 1.2% – Is It Still a Good Investment?

Walmart Inc. (NYSE:WMT) saw its share price increase by 1.2% during mid-day trading on Friday, reaching a peak of $91.12 before settling at $91.04. Throughout this trading period, approximately 2,239,850 shares exchanged hands, a significant drop of 73% from the average daily trading volume of 8,300,335 shares. The stock closed at $90.00 in the previous trading session.

Analyst Insights

Recent analyses from several equities experts have provided a range of price targets for Walmart's stock. Morgan Stanley raised its target from $89.00 to $100.00, giving the company an “overweight” rating. Barclays also increased their target from $78.00 to $90.00, maintaining an “overweight” rating as well. Additionally, Redburn Atlantic upgraded Walmart to a “strong-buy” rating. Evercore ISI set their target at $96.00, boosting it from $94.00 and assigning an “outperform” rating. Meanwhile, TD Cowen also increased their target from $90.00 to $100.00, recommending a “buy” rating. Notably, out of the analysts covering the stock, two have rated it as a hold, while twenty-nine have given it a buy rating and one has issued a strong buy rating. According to MarketBeat.com, Walmart has a consensus rating of “Moderate Buy” with a price target set at $93.69.

Walmart's Stock Performance Overview

The company's financial ratios are also worth noting: it has a debt-to-equity ratio of 0.42, a current ratio of 0.85, and a quick ratio of 0.23. Walmart’s market capitalization stands at approximately $729.27 billion, with a price-to-earnings (P/E) ratio of 37.26 and a PEG ratio of 4.47. Additionally, the stock has a beta of 0.54 and boasts a fifty-day moving average of $89.41, along with a 200-day moving average of $79.72.

The latest quarterly earnings report for Walmart was released on November 19, where the company announced earnings per share (EPS) of $0.58, surpassing the consensus estimate of $0.53 by $0.05. Walmart achieved a return on equity of 21.78% with a net margin of 2.92%. The company generated revenue totaling $169.59 billion during the quarter, which exceeded analysts' predictions of $167.69 billion. Compared to the same timeframe the previous year, Walmart's revenue increased by 5.5%. Analysts forecast that Walmart will report an EPS of 2.47 for the current fiscal year.

Insider Trading Activity

Recently, there have been significant insider transactions at Walmart. On October 24, CEO C. Douglas McMillon sold 29,124 shares averaging $82.79, totaling around $2.41 million. Post-sale, McMillon retains ownership of 3,843,929 shares valued at approximately $318.24 million, reflecting a 0.75% decrease in his ownership stake. The transaction was reported through the SEC filings. Additionally, EVP John R. Furner sold 13,125 shares on December 26 at an average price of $92.60, yielding about $1.22 million. Following this sale, Furner holds 566,794 shares worth around $52.49 million, marking a 2.26% drop in his ownership. Over the past ninety days, insiders have collectively sold 140,412 shares valued at about $12.48 million, indicating that 45.58% of Walmart's stock is owned by insiders.

Institutional Investor Activity

Institutional ownership of Walmart has also shifted recently. Various hedge funds have joined in acquiring shares of WMT. For instance, Peterson Financial Group Inc. made its first investment in Walmart in the third quarter, valued at about $26,000. Voisard Asset Management Group increased its position by 77.3% during the same period, now holding 399 shares worth approximately $32,000 after acquiring an additional 174 shares. Other institutions like Hoese & Co LLP and Livelsberger Financial Advisory have also established new positions, indicating a growing interest in Walmart's stock among institutional investors. Currently, institutional investors hold about 26.76% of Walmart’s shares.

About Walmart

Walmart Inc. operates in various sectors, including retail, wholesale, and eCommerce globally. The company manages three main segments: Walmart U.S., Walmart International, and Sam's Club. Its operations include supercenters, supermarkets, hypermarkets, warehouse clubs, cash-and-carry stores, and discount stores under the Walmart and Walmart Neighborhood Market brands. Additionally, Walmart conducts ecommerce through its websites, including walmart.com.mx, walmart.ca, and flipkart.com, among others.

Walmart, Stocks, Investment