Walmart (NASDAQ:WMT) Stock Price Down 1% – Should You Sell?

Walmart Inc. (NASDAQ:WMT)’s stock price fell 1% on Tuesday . The stock traded as low as $105.66 and last traded at $106.05. Approximately 21,417,317 shares changed hands during trading, a decline of 16% from the average daily volume of 25,618,891 shares. The stock had previously closed at $107.14.

Walmart News Summary

Here are the key news stories impacting Walmart this week:

• Positive Sentiment: Walmart agreed to pay $50 million to settle a federal opioid case—far below the potential multibillion-dollar liability previously discussed. The relatively modest settlement reduces legal uncertainty and limits the financial impact. Walmart Settles a Potential Multibillion-Dollar Opioid Case for $50 Million
• Positive Sentiment: TD Cowen identified Walmart as one of the retailers best positioned to benefit from artificial intelligence, including AI-driven shopping, personalization and operational efficiencies. Walmart, Ulta and Other Retailers That Can Win With AI
• Positive Sentiment: Walmart’s expanding advertising business is increasing its exposure to higher-margin revenue as digital sales grow. Analysts view this as a potential driver of earnings quality, although near-term investment costs remain a concern. Walmart’s Ad Business Expands
• Positive Sentiment: Jim Cramer said he would buy Walmart after its recent underperformance, reinforcing the view that the retailer’s defensive characteristics and long-term fundamentals remain attractive. Jim Cramer Says Buy Walmart
• Neutral Sentiment: Walmart was highlighted as a defensive stock to watch ahead of CPI data and the Federal Reserve’s interest-rate decision. Its grocery scale and relatively stable demand may support the shares if market volatility increases. Five Defensive Stocks to Watch
• Negative Sentiment: Despite solid operating momentum, Walmart trades at a premium earnings multiple. Analysts also expect spending related to its Vibe initiative to pressure fiscal 2027 profit growth, potentially limiting near-term upside.

Analyst Ratings Changes

Several research firms have recently commented on WMT. Royal Bank Of Canada cut their price objective on Walmart from $137.00 to $131.00 and set an “outperform” rating for the company in a report on Friday, August 21st. Guggenheim set a $130.00 price target on shares of Walmart and gave the stock a “buy” rating in a research report on Friday, August 21st. UBS Group cut their price target on shares of Walmart from $141.00 to $130.00 and set a “buy” rating for the company in a research note on Friday, August 21st. Gordon Haskett lowered shares of Walmart from a “buy” rating to an “accumulate” rating in a research note on Thursday, August 20th. Finally, Erste Group Bank cut shares of Walmart from a “buy” rating to a “hold” rating in a report on Friday, June 5th. Three research analysts have rated the stock with a Strong Buy rating, thirty-two have given a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $131.88.

Walmart Stock Down 1.0%

The firm has a market cap of $841.37 billion, a P/E ratio of 38.29, a P/E/G ratio of 4.09 and a beta of 0.59. The company has a debt-to-equity ratio of 0.41, a quick ratio of 0.23 and a current ratio of 0.77. The firm’s fifty day moving average is $110.66 and its 200 day moving average is $119.36.

Walmart (NASDAQ:WMT) last released its quarterly earnings results on Thursday, August 20th. The retailer reported $0.81 earnings per share for the quarter, beating the consensus estimate of $0.74 by $0.07. The firm had revenue of $187.94 billion for the quarter, compared to analysts’ expectations of $186.64 billion. Walmart had a net margin of 3.00% and a return on equity of 21.83%. The business’s revenue was up 5.9% on a year-over-year basis. During the same period in the prior year, the firm earned $0.68 EPS. Walmart has set its Q3 2027 guidance at 0.620-0.640 EPS and its FY 2027 guidance at 2.800-2.870 EPS. As a group, equities research analysts anticipate that Walmart Inc. will post 2.87 earnings per share for the current fiscal year.

Insider Transactions at Walmart

In other Walmart news, EVP Daniel Danker sold 50,644 shares of the company’s stock in a transaction on Wednesday, August 26th. The stock was sold at an average price of $105.35, for a total value of $5,335,345.40. Following the transaction, the executive vice president directly owned 201,672 shares of the company’s stock, valued at $21,246,145.20. This represents a 20.07% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP David W. Guggina sold 11,978 shares of the stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $119.82, for a total value of $1,435,203.96. Following the transaction, the executive vice president owned 125,067 shares in the company, valued at $14,985,527.94. The trade was a 8.74% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 81,242 shares of company stock worth $8,836,446 in the last ninety days. 0.09% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Walmart

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Brighton Jones LLC increased its position in Walmart by 28.8% during the 4th quarter. Brighton Jones LLC now owns 98,150 shares of the retailer’s stock valued at $8,868,000 after purchasing an additional 21,939 shares during the period. Revolve Wealth Partners LLC increased its holdings in Walmart by 5.8% in the fourth quarter. Revolve Wealth Partners LLC now owns 8,849 shares of the retailer’s stock worth $800,000 after purchasing an additional 485 shares in the last quarter. Peterson Wealth Management increased its holdings in Walmart by 3.5% in the first quarter. Peterson Wealth Management now owns 50,307 shares of the retailer’s stock worth $4,416,000 after purchasing an additional 1,715 shares in the last quarter. Sivia Capital Partners LLC lifted its stake in Walmart by 0.9% in the second quarter. Sivia Capital Partners LLC now owns 13,008 shares of the retailer’s stock valued at $1,272,000 after buying an additional 116 shares during the period. Finally, Schnieders Capital Management LLC. boosted its holdings in shares of Walmart by 1.2% during the 2nd quarter. Schnieders Capital Management LLC. now owns 91,341 shares of the retailer’s stock worth $8,931,000 after buying an additional 1,048 shares in the last quarter. 26.76% of the stock is currently owned by institutional investors and hedge funds.

Walmart Company Profile

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.