Walmart (NYSE:WMT) Shares Gap Down – Should You Sell?

Shares of Walmart Inc. (NYSE:WMT) gapped down prior to trading on Thursday . The stock had previously closed at $104.00, but opened at $98.78. Walmart shares last traded at $97.78, with a volume of 22,147,910 shares.

Wall Street Analyst Weigh In

Several analysts have weighed in on the company. TD Cowen lifted their target price on Walmart from $90.00 to $100.00 and gave the company a “buy” rating in a research note on Wednesday, November 20th. Morgan Stanley reissued an “overweight” rating and set a $115.00 price objective (up from $106.00) on shares of Walmart in a research note on Thursday, February 13th. Evercore ISI lifted their target price on Walmart from $94.00 to $96.00 and gave the stock an “outperform” rating in a report on Tuesday, December 3rd. Telsey Advisory Group increased their price target on Walmart from $105.00 to $115.00 and gave the company an “outperform” rating in a research report on Wednesday, February 12th. Finally, Tigress Financial boosted their price objective on Walmart from $86.00 to $115.00 and gave the stock a “buy” rating in a report on Friday, December 13th. Two equities research analysts have rated the stock with a hold rating, twenty-nine have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $101.87.

Walmart Stock Performance

The stock has a 50-day moving average of $95.56 and a 200-day moving average of $86.17. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.23 and a current ratio of 0.85. The firm has a market cap of $781.03 billion, a price-to-earnings ratio of 39.95, a price-to-earnings-growth ratio of 4.39 and a beta of 0.55.

Walmart (NYSE:WMT) last issued its quarterly earnings results on Thursday, February 20th. The retailer reported $0.66 EPS for the quarter, beating the consensus estimate of $0.64 by $0.02. Walmart had a return on equity of 21.78% and a net margin of 2.92%. As a group, analysts anticipate that Walmart Inc. will post 2.48 EPS for the current fiscal year.

Walmart Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, April 7th. Stockholders of record on Friday, March 21st will be given a $0.235 dividend. This is a positive change from Walmart’s previous quarterly dividend of $0.21. This represents a $0.94 annualized dividend and a dividend yield of 0.97%. Walmart’s dividend payout ratio is presently 34.06%.

Insider Buying and Selling

In related news, CEO C Douglas Mcmillon sold 29,124 shares of the company’s stock in a transaction dated Wednesday, November 27th. The shares were sold at an average price of $91.44, for a total value of $2,663,098.56. Following the transaction, the chief executive officer now directly owns 3,814,805 shares in the company, valued at approximately $348,825,769.20. This represents a 0.76 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Robert Edward Jr. Moritz bought 5,446 shares of the firm’s stock in a transaction on Wednesday, November 27th. The stock was purchased at an average cost of $91.81 per share, for a total transaction of $499,997.26. Following the completion of the acquisition, the director now owns 7,805 shares in the company, valued at approximately $716,577.05. This trade represents a 230.86 % increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last 90 days, insiders sold 175,177 shares of company stock valued at $16,403,728. Company insiders own 45.58% of the company’s stock.

Hedge Funds Weigh In On Walmart

A number of institutional investors and hedge funds have recently bought and sold shares of WMT. Michels Family Financial LLC bought a new stake in shares of Walmart during the fourth quarter worth about $533,000. Castlekeep Investment Advisors LLC bought a new position in shares of Walmart in the 4th quarter worth $1,326,000. Drucker Wealth 3.0 LLC grew its position in Walmart by 26.0% in the 4th quarter. Drucker Wealth 3.0 LLC now owns 5,203 shares of the retailer’s stock valued at $470,000 after purchasing an additional 1,075 shares during the period. Kingstone Capital Partners Texas LLC bought a new stake in Walmart during the 4th quarter valued at $2,367,000. Finally, Jupiter Wealth Management LLC raised its holdings in Walmart by 23.8% during the fourth quarter. Jupiter Wealth Management LLC now owns 12,482 shares of the retailer’s stock worth $1,128,000 after buying an additional 2,400 shares during the last quarter. Institutional investors and hedge funds own 26.76% of the company’s stock.

Walmart Company Profile

Walmart Inc engages in the operation of retail, wholesale, other units, and eCommerce worldwide. The company operates through three segments: Walmart U.S., Walmart International, and Sam's Club. It operates supercenters, supermarkets, hypermarkets, warehouse clubs, cash and carry stores, and discount stores under Walmart and Walmart Neighborhood Market brands; membership-only warehouse clubs; ecommerce websites, such as walmart.com.mx, walmart.ca, flipkart.com, PhonePe and other sites; and mobile commerce applications.