Hodges Capital Management Inc. Lowers Stock Position in Walmart Inc. $WMT

Hodges Capital Management Inc. cut its stake in shares of Walmart Inc. (NASDAQ:WMT) by 6.1% in the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 104,200 shares of the retailer’s stock after selling 6,813 shares during the quarter. Walmart accounts for approximately 1.0% of Hodges Capital Management Inc.’s holdings, making the stock its 28th biggest position. Hodges Capital Management Inc.’s holdings in Walmart were worth $11,609,000 at the end of the most recent reporting period.

Other hedge funds have also recently modified their holdings of the company. Entrust Financial LLC acquired a new stake in shares of Walmart during the fourth quarter worth $27,000. Redmont Wealth Advisors LLC acquired a new stake in shares of Walmart during the third quarter worth $30,000. Beacon Financial Strategies CORP acquired a new stake in shares of Walmart during the fourth quarter worth $30,000. Bay Harbor Wealth Management LLC lifted its holdings in shares of Walmart by 57.4% during the fourth quarter. Bay Harbor Wealth Management LLC now owns 288 shares of the retailer’s stock worth $32,000 after purchasing an additional 105 shares during the period. Finally, Clayton Financial Group LLC lifted its holdings in shares of Walmart by 193.0% during the fourth quarter. Clayton Financial Group LLC now owns 293 shares of the retailer’s stock worth $33,000 after purchasing an additional 193 shares during the period. 26.76% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several brokerages recently weighed in on WMT. The Goldman Sachs Group reaffirmed a “buy” rating and set a $138.00 price target on shares of Walmart in a report on Friday, February 20th. DA Davidson set a $150.00 price target on Walmart and gave the stock a “buy” rating in a report on Friday, February 20th. Bank of America began coverage on Walmart in a report on Friday, February 27th. They set a “buy” rating and a $150.00 price target for the company. Guggenheim increased their price target on Walmart from $120.00 to $137.00 and gave the stock a “buy” rating in a report on Monday, April 13th. Finally, HSBC downgraded Walmart from a “buy” rating to a “hold” rating and increased their price target for the stock from $122.00 to $131.00 in a report on Friday, February 20th. One analyst has rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, Walmart currently has an average rating of “Moderate Buy” and a consensus price target of $138.85.

Key Stories Impacting Walmart

Here are the key news stories impacting Walmart this week:

• Positive Sentiment: Walmart is expanding its drone delivery program with Alphabet’s Wing, adding another fast-delivery capability that could strengthen its e-commerce and convenience moat. Eyes on the sky: Walmart and Alphabet’s Wing expand their drone delivery program
• Positive Sentiment: Business Insider reported that Walmart’s AI-powered warehouses are speeding up freight handling and reducing the time store employees need to unload trucks, a sign that automation is improving efficiency and potentially margins. Walmart’s AI-powered warehouses are slashing the time it takes store employees to unload trucks
• Positive Sentiment: Recent conference appearances suggest management is highlighting Walmart’s growth in digital, e-commerce, and higher-margin services, which may reinforce the long-term bull case for the stock. Walmart Inc. (WMT) Presents at Oppenheimer 26th Annual Consumer Growth and E-Commerce Conference Transcript Walmart Inc. (WMT) Presents at The 6th Annual Evercore Consumer & Retail Conference Transcript
• Neutral Sentiment: Analysts remain split on Walmart, indicating the market is still weighing the company’s growth initiatives against its valuation. Analysts Have Conflicting Sentiments on These Consumer Goods Companies: Walmart (WMT), Campbell Soup (CPB) and JM Smucker (SJM)
• Neutral Sentiment: Coverage around Walmart’s retail media expansion, Subway integration, and broader digital transformation has raised questions about valuation, but also underscores the company’s push into higher-margin services. Walmart Media Expansion And Delivery Push Raise Questions For WMT Valuation Walmart (WMT) Valuation Check As Subway Integration And Higher Margin Services Draw New Attention Walmart’s No. 2 Ranking Hides a Digital Transformation Story

Insider Activity

In related news, EVP Daniel J. Bartlett sold 1,250 shares of Walmart stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $133.77, for a total transaction of $167,212.50. Following the completion of the sale, the executive vice president owned 635,593 shares in the company, valued at approximately $85,023,275.61. This trade represents a 0.20% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Christopher James Nicholas sold 2,900 shares of Walmart stock in a transaction dated Thursday, May 21st. The stock was sold at an average price of $123.92, for a total value of $359,368.00. Following the sale, the executive vice president owned 577,853 shares of the company’s stock, valued at approximately $71,607,543.76. This represents a 0.50% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 117,008 shares of company stock worth $14,492,704 in the last quarter. Corporate insiders own 0.09% of the company’s stock.

Walmart Trading Up 1.4%

NASDAQ:WMT opened at $120.59 on Thursday. The company has a market capitalization of $959.66 billion, a PE ratio of 42.31, a price-to-earnings-growth ratio of 4.44 and a beta of 0.59. The company has a quick ratio of 0.23, a current ratio of 0.77 and a debt-to-equity ratio of 0.42. Walmart Inc. has a 52-week low of $93.43 and a 52-week high of $135.15. The stock has a fifty day simple moving average of $125.43 and a 200-day simple moving average of $121.56.

Walmart (NASDAQ:WMT) last released its quarterly earnings results on Thursday, May 21st. The retailer reported $0.66 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.66. The business had revenue of $177.75 billion during the quarter, compared to the consensus estimate of $174.84 billion. Walmart had a return on equity of 21.25% and a net margin of 3.13%.The business’s revenue was up 7.4% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.61 EPS. Walmart has set its FY 2027 guidance at 2.750-2.850 EPS and its Q2 2027 guidance at 0.720-0.740 EPS. On average, equities research analysts expect that Walmart Inc. will post 2.89 earnings per share for the current fiscal year.

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.