Walmart (NASDAQ:WMT) Stock Falls 1% – Here’s Why

Shares of Walmart Inc. (NASDAQ:WMT) were down 1% during trading on Friday. The stock traded as low as $119.12 and last traded at $119.89. 18,105,781 shares changed hands during trading, a decline of 27% from the average session volume of 24,969,219 shares. The stock had previously closed at $121.12.

Key Headlines Impacting Walmart

Here are the key news stories impacting Walmart this week:

• Positive Sentiment: AI shopping tools could expand Walmart’s digital sales. Walmart introduced tools that allow third-party AI agents to search for products and complete purchases on customers’ behalf. The strategy could increase transaction volume and keep Walmart competitive in AI-enabled commerce, particularly as Amazon takes a more restrictive approach to outside shopping bots. Walmart launches tools for AI agents to shop for customers
• Positive Sentiment: Walmart+ and Sam’s Club are being bundled for $120. The combined membership offer may improve customer retention, increase cross-shopping between Walmart and Sam’s Club, and support recurring fee revenue. Walmart’s $120 Walmart+ and Sam’s Club Bundle
• Positive Sentiment: Recent momentum reflects investor confidence in Walmart’s defensive retail position. Reports say Walmart is on track for its strongest monthly performance since 1999, while it continues to gain grocery market share and benefit from a relatively resilient consumer base. Walmart’s Best Month Since 1999 Leads a Record Staples Rally
• Neutral Sentiment: New Fast & Furious collectibles are coming to Walmart. The 25th-anniversary NOS capsule collection could generate incremental seasonal traffic and sales, but the financial impact is likely limited relative to Walmart’s overall business. PMI Brings Fast and Furious Collectibles to Walmart
• Negative Sentiment: Valuation is becoming a bigger concern. Walmart has returned about 160% over five years and is trading well above historical earnings multiples. Investors may be questioning whether future earnings growth can justify the current price, increasing the risk of profit-taking after the recent rally. Is Walmart Getting Too Expensive on Earnings?
• Negative Sentiment: Competitive pressure could intensify in groceries. Kroger plans to use cost reductions and lower prices to regain market share from Walmart and Costco, potentially pressuring Walmart’s pricing power and margins. Kroger Plans Price Cuts to Compete With Walmart

Analyst Ratings Changes

A number of research firms have issued reports on WMT. Cantor Fitzgerald upgraded Walmart to a “buy” rating in a report on Friday, August 21st. Weiss Ratings cut Walmart from a “buy (b)” rating to a “buy (b-)” rating in a research report on Friday, July 31st. The Goldman Sachs Group reaffirmed a “buy” rating and set a $130.00 price objective on shares of Walmart in a research report on Friday, August 21st. Wells Fargo & Company decreased their price objective on Walmart from $140.00 to $120.00 and set an “overweight” rating for the company in a report on Friday, August 21st. Finally, Piper Sandler reissued an “overweight” rating and issued a $128.00 target price (down from $137.00) on shares of Walmart in a research report on Friday, August 21st. Three research analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Buy” and a consensus price target of $132.41.

Walmart Stock Performance

The company has a market capitalization of $951.18 billion, a price-to-earnings ratio of 43.28, a P/E/G ratio of 4.25 and a beta of 0.58. The stock’s 50 day moving average price is $109.17 and its 200 day moving average price is $116.00. The company has a current ratio of 0.77, a quick ratio of 0.23 and a debt-to-equity ratio of 0.41.

Walmart (NASDAQ:WMT) last released its earnings results on Thursday, August 20th. The retailer reported $0.81 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.74 by $0.07. Walmart had a return on equity of 21.83% and a net margin of 3.00%. The business had revenue of $187.94 billion for the quarter, compared to the consensus estimate of $186.64 billion. During the same quarter in the previous year, the business earned $0.68 earnings per share. Walmart’s quarterly revenue was up 5.9% on a year-over-year basis. Walmart has set its Q3 2027 guidance at 0.620-0.640 EPS and its FY 2027 guidance at 2.800-2.870 EPS. Analysts expect that Walmart Inc. will post 2.88 earnings per share for the current year.

Insider Activity at Walmart

In related news, EVP Daniel Danker sold 50,644 shares of the firm’s stock in a transaction on Wednesday, August 26th. The shares were sold at an average price of $105.35, for a total value of $5,335,345.40. Following the completion of the transaction, the executive vice president directly owned 201,672 shares of the company’s stock, valued at approximately $21,246,145.20. This trade represents a 20.07% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 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 Daniel Bartlett sold 3,990 shares of the business’s stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $104.41, for a total transaction of $416,595.90. Following the transaction, the executive vice president owned 618,359 shares in the company, valued at approximately $64,562,863.19. The trade was a 0.64% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 102,244 shares of company stock worth $11,112,044. Insiders own 0.09% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the company. Bell Bank increased its holdings in shares of Walmart by 7.4% in the third quarter. Bell Bank now owns 23,907 shares of the retailer’s stock valued at $2,484,000 after purchasing an additional 1,642 shares during the last quarter. 55 North Private Wealth LLC lifted its stake in shares of Walmart by 6.9% during the 3rd quarter. 55 North Private Wealth LLC now owns 9,291 shares of the retailer’s stock worth $966,000 after buying an additional 601 shares during the last quarter. Rise Advisors LLC lifted its stake in shares of Walmart by 11.8% during the 3rd quarter. Rise Advisors LLC now owns 5,073 shares of the retailer’s stock worth $527,000 after buying an additional 535 shares during the last quarter. James T. Borello RIA bought a new stake in shares of Walmart during the 3rd quarter worth about $129,000. Finally, V Square Quantitative Management LLC boosted its holdings in shares of Walmart by 9.7% during the 3rd quarter. V Square Quantitative Management LLC now owns 9,784 shares of the retailer’s stock worth $1,017,000 after buying an additional 864 shares during the period. 26.76% of the stock is currently owned by institutional investors and hedge funds.

About Walmart

Walmart Inc (NASDAQ:WMT) operates a global retail business through a network of supercenters, supermarkets, discount stores, neighborhood markets, warehouse clubs and e-commerce platforms. Its stores and websites sell a broad assortment of merchandise, including groceries, consumables, health and wellness products, apparel, electronics, home goods, toys and other general merchandise.

The company organizes its operations into Walmart U.S., Walmart International and Sam’s Club U.S. Walmart U.S.