A better buy-in window may exist right now for Walmart Inc. (WMT)

Walmart Inc. (NYSE: WMT) stock fell -1.02% on Friday to $133.39 against a previous-day closing price of $134.77. With 5.56 million shares changed hands, the volume of the stock remained lighter than its average volume of 7.92 million shares. During the session, the Discount Stores company that operates in wider Consumer Defensive sector, reached to the highest price of $134.72 whereas the lowest price it dropped to was $132.84. The 52-week range on WMT shows that it touched its highest point at $160.77 and its lowest point at $117.27 during that stretch. It currently has a 1-year price target of $151.89. With its current market cap of 362.81 billion, WMT has annualized dividend of $2.24 while the current yield stands at 1.68%. Beta for the stock currently stands at 0.53.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of WMT was down-trending over the past week, with a drop of -0.06%, but this was down by -0.46% over a month. Three-month performance surged to 7.90% while six-month performance fell -6.03%. The stock lost -6.52% in the past year, while it has lost -7.81% so far this year. A look at the trailing 12-month EPS for WMT yields 5.01 with Next year EPS estimates of 6.56. For the next quarter, that number is 1.31. This implies an EPS growth rate of 2.70% for this year and 11.90% for next year. EPS is expected to grow by 6.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 2.10%.

Float and Shares Shorts:

At present, 2.74 billion WMT shares are outstanding with a float of 1.40 billion shares on hand for trading. On Jul 14, 2022, short shares totaled 13.47 million, which was 0.49% higher than short shares on Jun 14, 2022. In addition to Mr. C. Douglas McMillon as the firm’s Pres, CEO & Director, Mr. Suresh Kumar serves as its Global CTO, Chief Devel. Officer & Exec. VP.

Institutional Ownership:

Through their ownership of 33.02% of WMT’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 48.20% of WMT, in contrast to 16.34% held by mutual funds. Shares owned by individuals account for 16.01%. As the largest shareholder in WMT with 4.48% of the stake, The Vanguard Group, Inc. holds 122,841,119 shares worth 122,841,119. A second-largest stockholder of WMT, BlackRock Fund Advisors, holds 62,828,088 shares, controlling over 2.29% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in WMT, holding 59,957,778 shares or 2.19% stake. With a 1.49% stake in WMT, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 40,746,628 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 1.14% of WMT stock, is the second-largest Mutual Fund holder. It holds 31,331,553 shares valued at 4.15 billion. Government Pension Fund – Global holds 0.73% of the stake in WMT, owning 19,891,352 shares worth 2.64 billion.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for WMT since 38 analysts follow the stock currently. There are 22 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 10 believe that the stock is worth HOLDING, 6 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With WMT analysts setting a high price target of $165.00 and a low target of $130.00, the average target price over the next 12 months is $151.24. Based on these targets, WMT could surge 23.7% to reach the target high and fall by -2.54% to reach the target low. Reaching the average price target will result in a growth of 13.38% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. WMT will report FY 2023 earnings on 02/21/2023. Analysts have provided yearly estimates in a range of $5.98 being high and $5.74 being low. For WMT, this leads to a yearly average estimate of $5.85. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Walmart Inc. surprised analysts by $0.15 when it reported $1.77 EPS against a consensus estimate of $1.62. The surprise factor in the prior quarter was -$0.18. Based on analyst estimates, the high estimate for the next quarter is $1.37 and the low estimate is $1.28. The average estimate for the next quarter is thus $1.31.

Summary of Insider Activity:

Insiders traded WMT stock several times over the past three months with 8 Buys and 56 Sells. In these transactions, 201,713 shares were bought while 12,516,470 shares were sold. The number of buy transactions has increased to 67 while that of sell transactions has risen to 282 over the past year. The total number of shares bought during that period was 1,894,159 while 74,513,965 shares were sold.

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