Walmart (NYSE:WMT) Shares Increase 0.7% - Is It a Good Buy?

Walmart Inc. (NYSE:WMT - Get Free Report) saw its share price rise by 0.7% during trading on Wednesday. The stock reached a high of $92.25 and was last traded at $91.94. In mid-day trading, around 3,295,722 shares were exchanged, marking an 80% decline from the average daily volume of 16,856,260 shares. Prior to this, the stock had closed at $91.31.

Analyst Ratings Changes

Several research analysts have provided updates on Walmart's stock. Telsey Advisory Group raised their price target from $92.00 to $100.00 and assigned an "outperform" rating on November 19th. Likewise, JPMorgan Chase & Co. increased their target from $81.00 to $83.00 while giving the stock an "overweight" rating. Royal Bank of Canada also raised their price objective from $88.00 to $92.00, maintaining an "overweight" rating. The Goldman Sachs Group lifted their target from $73.00 to $81.00 and issued a "buy" rating. Finally, Piper Sandler raised the target price from $83.00 to $93.00, keeping an "overweight" rating. Currently, two analysts have given the stock a hold rating, while twenty-nine recommend a buy and one gives a strong buy rating, leading to an average rating of "Moderate Buy" with a consensus target price of $91.88 based on MarketBeat data.

Walmart Stock Performance

The company has a fifty-day moving average of $82.55 and a two-hundred-day moving average of $74.36. Walmart has a market capitalization of $738.47 billion, a price-to-earnings ratio of 37.73, and a PEG ratio of 4.25, all while maintaining a beta of 0.51. The company’s debt-to-equity ratio stands at 0.56, with a quick ratio of 0.23 and a current ratio of 0.85.

Recently, Walmart reported its quarterly earnings on November 19th, announcing earnings per share (EPS) of $0.58, exceeding analysts' expectations of $0.53. The retailer achieved a net margin of 2.92% and a return on equity of 21.78%. It reported revenue of $169.59 billion, surpassing the expected $167.69 billion. Year-over-year, this represents a 5.5% increase compared to the previous period when it posted an EPS of $0.51. Analysts predict Walmart will report an EPS of 2.47 for the current fiscal year.

Insider Activity

In other news, major shareholder Alice L. Walton sold 2,709,163 shares of Walmart on September 3rd, at an average price of $77.37, totaling approximately $209.61 million. Post-transaction, Walton still owns 630,501,148 shares, valued at over $48.78 billion, indicating a 0.43% decline in her ownership. Another significant insider, S Robson Walton, sold 4,057,369 shares on September 9th at an average price of $77.20, amounting to around $313.23 million. Following this, he holds about 611,988,318 shares worth approximately $47.25 billion, reflecting a 0.66% decrease in ownership. Over the last three months, insiders have sold a total of 12,337,337 shares valued at nearly $958.82 million. Currently, corporate insiders own 45.58% of Walmart's stock.

Hedge Funds Weigh In On Walmart

Institutional investors have recently adjusted their holdings of the company. For example, Summit Financial Wealth Advisors LLC increased their stake by 0.5% in the third quarter, owning 23,720 shares valued at $1.92 million after purchasing additional shares. Providence Wealth Advisors LLC also raised their position by 0.3%, now holding 43,549 shares worth $3.59 million. Other firms, such as 3Chopt Investment Partners LLC and CAP Partners LLC, raised their investments slightly, contributing to a healthy movement among large investors. Notably, institutional investors collectively own 26.76% of Walmart's shares.

About Walmart

Walmart Inc. operates various retail and eCommerce ventures globally. The company has multiple segments, including Walmart U.S., Walmart International, and Sam's Club. It operates a range of stores, including supercenters, supermarkets, and discount shops under the Walmart name, alongside eCommerce platforms and mobile apps.

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For those considering whether to invest $1,000 in Walmart, keep in mind that recent analysis suggests other stocks might be more attractive. MarketBeat highlights that top-rated experts are currently favoring five different stocks over Walmart.

Walmart, Stocks, Investment