Walmart Inc. (NYSE:WMT) received renewed confidence from the Telsey Advisory Group, which reaffirmed its “outperform” rating for the retail giant. In a note to investors released on Thursday, Telsey set a price target of $115.00 for Walmart’s shares, signaling a potential upside of 15.05% from the current trading price.
In recent weeks, several other financial analysts have also weighed in on Walmart’s stock. For instance, on May 16, DA Davidson reiterated a “buy” rating, setting a target price of $117.00. Evercore ISI increased its price target from $107.00 to $108.00, maintaining an “outperform” rating as of May 12. Additionally, Mizuho raised its target from $105.00 to $115.00, while KeyCorp adjusted its price target to $110.00. Overall, Walmart has garnered positive ratings from 31 analysts, with only one holding a “strong buy” rating.
Despite the positive outlook from analysts, Walmart’s stock experienced a slight decline of 0.9%, opening at $99.96 on Thursday. The stock has shown some volatility, with a one-year low of $72.52 and a high of $105.30. Currently, the company’s market capitalization stands at $797.72 billion, with a price-to-earnings ratio of 42.72.
Recent Earnings and Analyst Projections
Walmart released its quarterly earnings results on May 15, 2024, reporting earnings per share (EPS) of $0.61, exceeding analysts’ consensus estimate of $0.58 by $0.03. The retailer’s revenue for the quarter was $165.61 billion, surpassing expectations of $164.53 billion. This marked a 2.5% increase in revenue compared to the same period last year, with a net margin of 2.75% and a return on equity of 21.76%. Analysts are anticipating that Walmart will report an EPS of $2.55 for the current fiscal year.
Insider Activity and Institutional Investments
Recent insider transactions have also drawn attention. On July 15, EVP Daniel J. Bartlett sold 1,744 shares at an average price of $95.60, amounting to approximately $166,726.40. Following this sale, Bartlett retained 649,233 shares valued at around $62.07 million. Similarly, EVP John D. Rainey sold 2,200 shares on August 1 at an average price of $98.30, totaling $216,260.00.
Hedge funds and institutional investors have recently altered their positions in Walmart. Access Investment Management LLC acquired a new stake valued at approximately $26,000 in the second quarter. Operose Advisors LLC boosted its stake by 319.7% in the first quarter, while PFS Partners LLC increased its stake by 267.8% in the second quarter. Collectively, institutional investors now hold 26.76% of Walmart’s shares.
Walmart operates in various segments, including Walmart U.S., Walmart International, and Sam’s Club, providing a diverse range of retail and eCommerce options globally. As the company continues to adapt to shifting market dynamics, analysts remain optimistic about its potential for growth in the coming months.