KeyBanc Capital Markets has recently reiterated Walmart Inc (WMT) stock to Overweight rating, as announced on December 11, 2024, according to Finviz. Earlier, on November 21, 2024, DZ Bank had reduced the stock from a Buy to Hold, setting a price target of $91. Telsey Advisory Group also reiterated Outperform rating with a price target of $100. Additionally, Bernstein initiated Outperform rating on October 22, 2024, with a target price of $95. Oppenheimer analysts, in their report published on October 14, 2024, also reiterated Outperform rating and set a price target of $90 for Walmart Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Walmart Inc (WMT) Stock Trading Recap
On Friday, Walmart Inc (WMT) stock saw a decline, ending the day at $104.04 which represents a decrease of $-1.01 or -0.96% from the prior close of $105.05. The stock opened at $105.3 and touched a low of $103.6 during the day, reaching a high of $105.3. The volume of shares traded was 14.09 million falling short of the average volume of 17.03 million.
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WMT Stock Performance and Moving Averages
In recent trading, Walmart Inc (WMT) stock price has shown some volatility, fluctuating 2.86% over the last five trades and 13.90% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 51.53%, and it has gained 22.41% in the previous three months. Currently, WMT is trading at 5.05%, 9.24%, and 31.21% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, WMT, a Consumer Defensive sector stock, is trading -1.14% below its 52-week high but remains 86.30% above its 52-week low. The Average True Range (ATR) (14 days) of 1.64 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Walmart Inc’s Profitability and Valuation Ratios
Walmart Inc’s profitability metrics reveal financial health. The company currently boasts an operating margin of 4.27% and a profit margin of 2.92%, with a gross margin of 51.53%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Walmart Inc’s market capitalization stands at $835.79 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 42.73, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 37.61. Additionally, the Price-to-Sales Ratio is 1.24, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 9.49, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 45.79% of Walmart Inc (WMT)’s shares, while financial institutions hold 35.41%.
Notable insider trades include Rainey John D, Executive Vice President at Walmart Inc (WMT), who sold 38000 shares on Feb 03 ’25, at $98.8 each, totaling $3.75 million. On Jan 23 ’25, Furner John R., Executive Vice President, sold 13125 shares for $92.96 each, amounting to $1.22 million. Additionally, on Jan 23 ’25, McMillon C Douglas sold 29124 shares at $92.62 each, generating $2.70 million.
