Walmart (NASDAQ:WMT) Shares Up 2.4% – Still a Buy?

Walmart Inc. (NASDAQ:WMT) shares shot up 2.4% during mid-day trading on Wednesday . The stock traded as high as $116.05 and last traded at $116.01. 21,965,769 shares changed hands during mid-day trading, a decline of 13% from the average session volume of 25,236,686 shares. The stock had previously closed at $113.26.

Key Walmart News

Here are the key news stories impacting Walmart this week:

• Positive Sentiment: Bank of America analyst Christopher Nardone expects Walmart could return to a “beat-and-raise” pattern, potentially exceeding quarterly expectations and increasing its outlook despite softer spending among lower-income consumers. This provides a positive setup ahead of earnings. Walmart Could Return to Its Beat-And-Raise Playbook This Quarter, Analyst Says
• Positive Sentiment: Royal Bank of Canada reaffirmed its “outperform” rating and set a $137 price target, suggesting meaningful potential appreciation from recent levels. The bullish view supports the stock as investors await results.
• Positive Sentiment: Walmart’s acquisition of Vibe.co expands Walmart Connect into self-service streaming television advertising. The move could help the retailer monetize its customer data and diversify revenue toward potentially higher-margin advertising. Walmart Bets on Streaming Ads
• Positive Sentiment: Analysts and investors continue to credit Walmart’s progress in e-commerce, supporting the company’s longer-term ability to compete in omnichannel retail. Walmart Stock: Buy or Sell?
• Neutral Sentiment: Walmart and the Walmart Foundation committed $500,000 in grants and in-kind assistance for Spokane wildfire relief. The contribution may support community relations but is unlikely to materially affect earnings. Walmart and the Walmart Foundation Commit $500,000 to Spokane Wildfire Relief
• Negative Sentiment: Valuation remains a concern after Walmart’s substantial five-year return. A DCF analysis and other valuation measures indicate the shares may be priced at a premium, leaving less room for disappointment if growth slows or margins come under pressure. Is Walmart Fully Valued If Growth Plans Meet Margin Pressure?
• Negative Sentiment: Erste Group Bank lowered its fiscal 2027 earnings estimate slightly to $2.89 per share and maintained a “Hold” rating, underscoring limited near-term earnings momentum and valuation risk.

Analyst Ratings Changes

A number of brokerages recently weighed in on WMT. KeyCorp restated an “overweight” rating on shares of Walmart in a report on Wednesday. UBS Group reissued a “buy” rating on shares of Walmart in a research note on Tuesday, August 4th. BNP Paribas Exane decreased their target price on Walmart from $147.00 to $146.00 and set an “outperform” rating on the stock in a report on Friday, May 22nd. Truist Financial set a $140.00 target price on Walmart in a research report on Thursday, May 21st. Finally, Erste Group Bank downgraded Walmart from a “buy” rating to a “hold” rating in a report on Friday, June 5th. One equities research analyst has rated the stock with a Strong Buy rating, thirty have given a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $138.56.

Walmart Stock Performance

The firm’s 50 day simple moving average is $114.47 and its 200-day simple moving average is $121.59. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.23 and a current ratio of 0.77. The company has a market capitalization of $923.22 billion, a price-to-earnings ratio of 40.71, a P/E/G ratio of 4.21 and a beta of 0.61.

Walmart (NASDAQ:WMT) last posted its quarterly earnings results on Thursday, May 21st. The retailer reported $0.66 earnings per share for the quarter, meeting the consensus estimate of $0.66. The firm had revenue of $177.75 billion for the quarter, compared to analyst estimates of $174.84 billion. Walmart had a return on equity of 21.25% and a net margin of 3.13%.Walmart’s quarterly revenue was up 7.4% on a year-over-year basis. During the same period in the previous year, the firm earned $0.61 earnings per share. Walmart has set its FY 2027 guidance at 2.750-2.850 EPS and its Q2 2027 guidance at 0.720-0.740 EPS. Analysts expect that Walmart Inc. will post 2.88 EPS for the current year.

Insider Buying and Selling

In other news, EVP Daniel J. Bartlett sold 3,775 shares of the stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $109.64, for a total value of $413,891.00. Following the completion of the sale, the executive vice president directly owned 630,009 shares of the company’s stock, valued at $69,074,186.76. This represents a 0.60% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Latriece Watkins sold 11,000 shares of the firm’s stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $118.97, for a total transaction of $1,308,670.00. Following the sale, the executive vice president owned 120,203 shares of the company’s stock, valued at approximately $14,300,550.91. This represents a 8.38% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 71,439 shares of company stock worth $8,544,532 over the last ninety days. 0.09% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Walmart

A number of hedge funds have recently modified their holdings of the stock. MFA Wealth Services grew 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 valued at $1,356,000 after buying an additional 80 shares during the last quarter. Realta Investment Advisors lifted its holdings in Walmart by 2.0% in the first quarter. Realta Investment Advisors now owns 4,089 shares of the retailer’s stock worth $508,000 after acquiring an additional 81 shares during the last quarter. Compton Financial Group LLC lifted its holdings in Walmart by 4.1% in the first quarter. Compton Financial Group LLC now owns 2,081 shares of the retailer’s stock worth $259,000 after acquiring an additional 82 shares during the last quarter. Renaissance Group LLC boosted its stake in Walmart by 0.9% in the fourth quarter. Renaissance Group LLC now owns 9,636 shares of the retailer’s stock valued at $1,074,000 after acquiring an additional 83 shares during the period. Finally, Calton & Associates Inc. boosted its stake in Walmart by 0.3% in the fourth quarter. Calton & Associates Inc. now owns 27,220 shares of the retailer’s stock valued at $3,033,000 after acquiring an additional 84 shares during the period. 26.76% of the stock is owned by institutional investors and hedge funds.

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.