Walmart (NASDAQ:WMT) Trading Down 3.8% – What’s Next?

Walmart Inc. (NASDAQ:WMT)’s stock price traded down 3.8% during trading on Tuesday . The company traded as low as $128.16 and last traded at $128.85. 34,602,078 shares traded hands during mid-day trading, a decline of 12% from the average session volume of 39,358,621 shares. The stock had previously closed at $133.89.

Key Stories Impacting Walmart

Here are the key news stories impacting Walmart this week:

• Positive Sentiment: Walmart reached a large market-cap milestone and remains a blue‑chip dividend name, reinforcing investor confidence in its scale and defensive appeal. Walmart dividend king tops $1 trillion valuation milestone | WMT
• Positive Sentiment: Analysts note Walmart’s evolution into a tech-like competitor thanks to investments in e‑commerce, advertising and AI — a narrative that supports a higher multiple if growth continues. Walmart Earnings: The Newest ‘Tech’ Stock?
• Positive Sentiment: WMT has posted a strong rally year-to-date, which reflects optimism about holiday sales and execution ahead of earnings. Walmart Stock Surges 20% in 2026: Should Investors Buy Ahead of Earnings?
• Neutral Sentiment: Walmart will report Q4 results this week — its first since listing on Nasdaq and after appointing a new CEO — making guidance and commentary the immediate catalysts. It’s Time to Get Ready for Walmart’s Earnings. Here’s What’s New at the Huge Retailer.
• Neutral Sentiment: Market observers treat Walmart as the retail sector bellwether; its results could influence sentiment for discount/off‑price peers. 3 Discount Retail Stocks to Watch as Earnings Put Valuations to the Test
• Neutral Sentiment: Analyst previews highlight strength in traffic, e‑commerce and ad revenue but warn of tariff effects and cost pressures — factors investors will parse in the print. Walmart’s Q4 Earnings Coming Up: Is WMT Stock Still a Smart Buy?
• Negative Sentiment: Commentary in major outlets flags that Walmart’s shares price in “AI insurance” and look expensive relative to fundamentals, pressuring sentiment after the recent run. Walmart Shares Are Expensive AI Insurance
• Negative Sentiment: Valuation concerns are echoed by analysts who call WMT’s multiple “lofty,” raising the bar for the company to justify continued upside. Walmart Earnings Preview: Tariff Compares Should Get Easier, But Valuation Still Quite Lofty
• Negative Sentiment: Reports point to a shopper shift and tougher retail reality in some segments, which could pressure comps and margins if trends persist. Walmart shopper shift is a brutal reality check for retail

Wall Street Analysts Forecast Growth

WMT has been the subject of several research reports. TD Cowen reaffirmed a “buy” rating on shares of Walmart in a report on Wednesday, January 14th. Raymond James Financial reaffirmed an “outperform” rating on shares of Walmart in a research note on Wednesday, January 14th. Jefferies Financial Group reaffirmed a “buy” rating and issued a $132.00 price objective on shares of Walmart in a report on Tuesday, February 3rd. Piper Sandler reiterated an “overweight” rating and set a $130.00 price target (up from $123.00) on shares of Walmart in a research report on Tuesday, February 3rd. Finally, DA Davidson set a $130.00 target price on shares of Walmart and gave the company a “buy” rating in a research note on Friday, November 21st. Thirty-two analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $128.44.

Walmart Trading Down 3.8%

The company has a 50 day moving average of $118.51 and a 200 day moving average of $108.65. The firm has a market cap of $1.03 trillion, a P/E ratio of 52.10, a PEG ratio of 5.12 and a beta of 0.65. The company has a debt-to-equity ratio of 0.39, a quick ratio of 0.24 and a current ratio of 0.80.

Walmart (NASDAQ:WMT) last posted its earnings results on Thursday, November 20th. The retailer reported $0.62 EPS for the quarter, topping the consensus estimate of $0.60 by $0.02. Walmart had a net margin of 3.26% and a return on equity of 21.31%. The company had revenue of $179.50 billion during the quarter, compared to the consensus estimate of $175.15 billion. During the same period in the previous year, the firm posted $0.58 earnings per share. The company’s revenue for the quarter was up 5.8% compared to the same quarter last year. Walmart has set its FY 2026 guidance at 2.580-2.630 EPS. Analysts predict that Walmart Inc. will post 2.55 EPS for the current fiscal year.

Insider Buying and Selling

In related news, EVP John R. Furner sold 13,125 shares of the company’s stock in a transaction on Thursday, November 20th. The shares were sold at an average price of $104.75, for a total transaction of $1,374,843.75. Following the completion of the sale, the executive vice president directly owned 879,815 shares of the company’s stock, valued at approximately $92,160,621.25. This represents a 1.47% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Donna Morris sold 76,181 shares of the firm’s stock in a transaction dated Tuesday, February 3rd. The shares were sold at an average price of $123.79, for a total value of $9,430,445.99. Following the completion of the sale, the executive vice president directly owned 402,072 shares in the company, valued at approximately $49,772,492.88. This represents a 15.93% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 227,566 shares of company stock valued at $26,790,653. 0.10% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Walmart

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. CWM LLC raised its holdings in Walmart by 24.2% during the third quarter. CWM LLC now owns 1,175,703 shares of the retailer’s stock worth $121,168,000 after acquiring an additional 229,220 shares in the last quarter. Neuberger Berman Group LLC increased its holdings in Walmart by 0.8% during the second quarter. Neuberger Berman Group LLC now owns 5,091,126 shares of the retailer’s stock worth $497,771,000 after buying an additional 42,645 shares during the last quarter. Harel Insurance Investments & Financial Services Ltd. raised its position in Walmart by 16.6% during the third quarter. Harel Insurance Investments & Financial Services Ltd. now owns 63,782 shares of the retailer’s stock worth $6,567,000 after acquiring an additional 9,061 shares in the last quarter. Aviva PLC lifted its stake in Walmart by 16.4% in the second quarter. Aviva PLC now owns 3,833,720 shares of the retailer’s stock valued at $374,861,000 after acquiring an additional 539,504 shares during the last quarter. Finally, World Investment Advisors increased its position in Walmart by 5.2% during the third quarter. World Investment Advisors now owns 293,866 shares of the retailer’s stock worth $30,286,000 after buying an additional 14,487 shares during the last quarter. 26.76% of the stock is currently owned by institutional investors.

About Walmart

Walmart is a multinational retail corporation that operates a broad portfolio of store formats and digital services. Its core business includes large-format supercenters, discount department stores, neighborhood grocery stores and a membership warehouse chain, Sam’s Club. The company’s merchandising mix covers groceries, household goods, apparel, electronics and pharmacy services, supplemented by private-label products and category-specific offerings. Walmart pairs its physical store network with online platforms and mobile applications to provide omnichannel shopping, fulfillment and delivery options for consumers and businesses.

The company was founded by Sam Walton, who opened the first store in Rogers, Arkansas in 1962; it is headquartered in Bentonville, Arkansas.