Walmart (NASDAQ:WMT) Shares Down 1.4% – Should You Sell?

Walmart Inc. (NASDAQ:WMT) shares dropped 1.4% during trading on Thursday . The company traded as low as $124.40 and last traded at $124.87. Approximately 42,883,800 shares traded hands during mid-day trading, an increase of 9% from the average daily volume of 39,479,777 shares. The stock had previously closed at $126.62.

Key Headlines Impacting Walmart

Here are the key news stories impacting Walmart this week:

• Positive Sentiment: Quarterly beat and strong underlying cash flow — Q4 EPS of $0.74 (vs. $0.73 est.) and revenue of $190.7B; operating income, margins and free cash flow improved, supporting valuation and buybacks. Earnings Release
• Positive Sentiment: Digital and ad businesses accelerating — global eCommerce +24% and Walmart Connect ad revenue up ~37% (U.S. +41%), showing higher-margin growth drivers that justify premium multiples. Zacks: E‑commerce & Ad Growth
• Positive Sentiment: Capital returns stepped up — board raised annual dividend to $0.99 (+5%) and approved a new $30B buyback authorization, supporting shareholder returns during the pullback. Dividend Press Release
• Neutral Sentiment: Analyst/institutional positioning — several upgrades and buy-side accumulation were noted ahead of/after the print, creating a potential support base even as the stock digests guidance. MarketBeat: Buy‑on‑Pullback
• Neutral Sentiment: Leadership transition — new CEO John Furner’s first report emphasized a cautious, steady approach; investors may view this as prudent but less growth‑oriented in the near term. Reuters: Furner Era
• Negative Sentiment: Guidance disappointed — FY‑2027 EPS guidance of $2.75–2.85 and Q1 EPS 0.61 fell short of consensus (~$2.94), triggering profit‑taking despite the quarter’s strength. MarketBeat: Guidance Commentary
• Negative Sentiment: Competitive headline — Amazon surpassing Walmart in annual revenue (symbolic but market‑moving) and commentary that the outlook is “conservative” amplified selling pressure. CNBC: Amazon vs Walmart

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on WMT. Barclays reiterated an “overweight” rating and set a $125.00 price objective (up from $108.00) on shares of Walmart in a research note on Thursday, January 8th. Argus upgraded shares of Walmart to a “strong-buy” rating in a research report on Wednesday. Tigress Financial raised their price objective on shares of Walmart from $130.00 to $135.00 and gave the company a “buy” rating in a research report on Friday, January 23rd. Royal Bank Of Canada restated an “outperform” rating and set a $140.00 target price (up previously from $126.00) on shares of Walmart in a research note on Wednesday, February 11th. Finally, Telsey Advisory Group reaffirmed an “outperform” rating and issued a $135.00 target price on shares of Walmart in a report on Thursday, February 12th. One investment analyst has rated the stock with a Strong Buy rating, thirty-two have given a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $128.59.

Walmart Price Performance

The company has a debt-to-equity ratio of 0.39, a current ratio of 0.80 and a quick ratio of 0.24. The firm’s 50-day moving average is $119.05 and its two-hundred day moving average is $108.98. The company has a market cap of $995.24 billion, a P/E ratio of 43.66, a PEG ratio of 4.93 and a beta of 0.65.

Walmart (NASDAQ:WMT) last posted its earnings results on Thursday, February 19th. The retailer reported $0.74 earnings per share for the quarter, topping analysts’ consensus estimates of $0.73 by $0.01. Walmart had a net margin of 3.26% and a return on equity of 21.31%. The firm had revenue of $190.66 billion for the quarter, compared to the consensus estimate of $188.37 billion. During the same period in the previous year, the firm posted $0.66 EPS. The business’s quarterly revenue was up 5.6% on a year-over-year basis. Walmart has set its FY 2027 guidance at 2.750-2.850 EPS and its Q1 2027 guidance at 0.610-0.610 EPS. Analysts anticipate that Walmart Inc. will post 2.55 earnings per share for the current year.

Insider Activity

In related news, EVP John D. Rainey sold 20,000 shares of the stock in a transaction on Monday, February 2nd. The stock was sold at an average price of $122.27, for a total transaction of $2,445,400.00. Following the sale, the executive vice president owned 506,764 shares in the company, valued at approximately $61,962,034.28. This represents a 3.80% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, SVP David Chojnowski sold 7,000 shares of the stock in a transaction on Tuesday, November 25th. The shares were sold at an average price of $106.65, for a total transaction of $746,550.00. Following the completion of the sale, the senior vice president directly owned 136,289 shares in the company, valued at approximately $14,535,221.85. This represents a 4.89% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 210,441 shares of company stock worth $25,009,289. Company insiders own 0.10% of the company’s stock.

Institutional Investors Weigh In On Walmart

Several hedge funds and other institutional investors have recently modified their holdings of the business. Entrust Financial LLC purchased a new stake in Walmart in the 4th quarter valued at about $27,000. Collier Financial purchased a new stake in shares of Walmart in the third quarter valued at approximately $25,000. Access Investment Management LLC bought a new position in Walmart in the second quarter worth approximately $26,000. Your Advocates Ltd. LLP purchased a new position in Walmart during the 3rd quarter worth $28,000. Finally, Beacon Financial Strategies CORP bought a new stake in Walmart during the 4th quarter valued at $30,000. 26.76% of the stock is currently owned by hedge funds and other institutional investors.

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.