Walmart (NASDAQ:WMT) Shares Climb 2% – Still a Buy?

Shares of Walmart Inc. (NASDAQ:WMT) traded up 2% during mid-day trading on Tuesday. The stock traded as high as $107.55 and last traded at $107.20. 21,654,221 shares traded hands during mid-day trading, a decline of 14% from the average session volume of 25,312,521 shares. The stock had previously closed at $105.07.

Walmart News Roundup

Here are the key news stories impacting Walmart this week:

• Positive Sentiment: Advertising and e-commerce growth: Walmart Connect revenue increased 43% excluding VIZIO, while U.S. e-commerce sales rose 24% year over year in fiscal 2027’s second quarter. Growth in advertising, membership and delivery could improve Walmart’s digital margins and reduce reliance on low-margin retail sales. Can Walmart Connect Keep Powering WMT’s Digital Profit Growth?
• Positive Sentiment: Expanded television advertising opportunity: A partnership with Warner Bros. represents Walmart’s effort to capture a larger share of television advertising spending. The initiative could broaden Walmart Connect’s reach and create another source of higher-margin revenue. Walmart moves to grab a bigger chunk of the TV ad business
• Positive Sentiment: Strong visibility with AI shopping agents: Walmart and Costco are reportedly among the retailers most frequently cited by AI agents. That recognition could support customer acquisition and digital sales, though the broader AI-driven shopping market is still developing. Which Retailers Do AI Agents Cite the Most?
• Neutral Sentiment: Unusually heavy call-option activity: Investors purchased 267,098 call options, approximately 99% above average daily call volume. This indicates increased bullish speculation or hedging, but options activity alone does not establish a durable change in fundamentals.
• Negative Sentiment: Valuation could limit upside: Walmart’s roughly 39-times earnings multiple and PEG ratio near 4 suggest the market already prices in substantial growth. Investors may therefore demand continued strong execution from Connect, e-commerce and membership businesses before assigning the stock a higher valuation.
• Neutral Sentiment: Dividend appeal is limited: Walmart has raised its dividend for 53 consecutive years, but its yield is below 1%, making the stock more dependent on earnings growth and capital appreciation than income.

Wall Street Analyst Weigh In

WMT has been the topic of a number of recent analyst reports. Wells Fargo & Company decreased their target price on Walmart from $140.00 to $120.00 and set an “overweight” rating on the stock in a report on Friday, August 21st. Wolfe Research restated an “outperform” rating and set a $115.00 price objective on shares of Walmart in a research report on Friday, August 21st. BTIG Research reiterated a “buy” rating and issued a $140.00 price objective on shares of Walmart in a report on Thursday, September 10th. Cantor Fitzgerald raised Walmart to a “buy” rating in a report on Friday, August 21st. Finally, KeyCorp reiterated an “overweight” rating on shares of Walmart in a report on Thursday, September 10th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-two have assigned a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $131.74.

Walmart Stock Up 2.0%

The stock has a market capitalization of $850.50 billion, a P/E ratio of 38.70, a price-to-earnings-growth ratio of 3.98 and a beta of 0.58. The company has a debt-to-equity ratio of 0.41, a current ratio of 0.77 and a quick ratio of 0.23. The stock has a fifty day moving average price of $108.67 and a 200 day moving average price of $116.75.

Walmart (NASDAQ:WMT) last posted its earnings results on Thursday, August 20th. The retailer reported $0.81 earnings per share for the quarter, topping analysts’ consensus estimates of $0.74 by $0.07. Walmart had a net margin of 3.00% and a return on equity of 21.83%. The business had revenue of $187.94 billion for the quarter, compared to analyst estimates of $186.64 billion. During the same quarter in the prior year, the firm posted $0.68 EPS. Walmart’s 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. On average, research analysts forecast that Walmart Inc. will post 2.87 earnings per share for the current year.

Insider Activity

In related news, EVP Christopher Nicholas sold 2,900 shares of the business’s stock in a transaction dated Thursday, September 17th. The stock was sold at an average price of $106.65, for a total transaction of $309,285.00. Following the transaction, the executive vice president owned 566,253 shares in the company, valued at $60,390,882.45. The trade was a 0.51% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO John Furner sold 13,125 shares of Walmart stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $106.66, for a total value of $1,399,912.50. Following the transaction, the chief executive officer owned 647,912 shares of the company’s stock, valued at $69,106,293.92. The trade was a 1.99% 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. In the last ninety days, insiders have sold 81,219 shares of company stock valued at $8,604,429. Company insiders own 0.09% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the business. Bank of America Corp DE purchased a new position in shares of Walmart during the second quarter worth approximately $7,455,131,000. Legal & General Group Plc bought a new stake in shares of Walmart in the second quarter valued at about $2,905,655,000. Canada Pension Plan Investment Board purchased a new stake in Walmart in the second quarter worth about $796,677,000. Deutsche Bank AG grew its holdings in Walmart by 54.0% during the 2nd quarter. Deutsche Bank AG now owns 18,607,297 shares of the retailer’s stock worth $2,107,462,000 after acquiring an additional 6,525,224 shares in the last quarter. Finally, Amundi increased its position in Walmart by 44.4% during the 2nd quarter. Amundi now owns 20,796,957 shares of the retailer’s stock valued at $2,355,463,000 after purchasing an additional 6,393,326 shares during the period. 26.76% of the stock is owned by hedge funds and other institutional investors.

Walmart Company Profile

Walmart Inc (NASDAQ: WMT) is a multinational retailer that operates supercenters, discount stores, neighborhood markets, warehouse clubs and e-commerce platforms. Its merchandise includes groceries, apparel, electronics, home goods, health and wellness products, household essentials and general merchandise. Walmart also provides services such as grocery pickup and delivery, pharmacy services, financial products and digital advertising.

The company serves customers through its Walmart U.S., Walmart International and Sam’s Club segments.