Walmart Inc. (WMT) Could Go Up In Smoke?

Analysts at Daiwa Securities cut their rating on shares of Walmart Inc. (NYSE:WMT) from Outperform to Neutral in their opinion released on November 20. Analysts at Telsey Advisory Group are sticking to their Outperform recommendation. However, on August 17, they lifted target price for these shares to $107 from $105. Analysts at Telsey Advisory Group, made their first call for the stock with a Outperform rating, according to a research note that dated back to August 17.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Walmart Inc. (NYSE:WMT)’s prospects. The earliest insider trade took place on 12/28/2018. Walton S Robson parted with a total of 734.95 thousand shares of company at average share price of $92.48. The total for the sales was set at $67.97 million. After this transaction, the Director, 10% Owner account balance stood at 1460 million shares. The stock grew 2.55 percent since that insider sale. On 12/28/2018, Walton Jim C, 10% Owner, sold 734.95 thousand shares at a price per share of $92.48. This removed 67.97 million shares from the insider’s fortune and the stock saw a 2.55 percent rally in value since the news became public. This transaction left 1470 million shares in the 10% Owner account. On 12/28/2018, 10% Owner Walton Alice L performed a sale transaction worth $67.97 million. This sale at $92.48 each has eliminated 734.95 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 2.55 percent increase since the transaction was reported. The insider now is left with 1460 million shares remaining in the account. Walton Alice L, who performs the 10% Owner job, sold 500.5 thousand shares for $46.19 million. The disposal occurred on 12/19/2018 was priced at $92.29 per share. The share price soared 2.76 percent since the reporting date. Walton Alice L now left with a stake of 1460 million WMT stock worth $138466.4 million after the insider selling.

Walmart Inc. (WMT) is expected to jump by 12.62 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $120-month high price target. This represents a whopping 26.53 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $105, which represents a return potential of 10.71 percent when compared to the closing price of the stock of $94.84 on Friday, January 11. The lowest price target for the stock is $90 — slightly more than -5.1 percent from WMT’s current share price.

The shares are currently floating around the first support level of $94.5. Below this, the next support is placed in the zone of $94.15. Till the time, the WMT stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 51.32 on daily chart, which may remain a cause for concern. If the price breaks below $94.15 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $95.24 mark may result into a pull-back move towards $95.63 level.

WMT shares dropped -0.12 points or -0.13 percent on Friday to $94.84 with a light trade volume of 5.284 million shares. After opening the session at $94.99, the shares went as high as $95.29 and as low as $94.55, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $276 billion and now has 2.91 billion shares outstanding. Walmart Inc. (WMT) stock has gained 1.05 percent of market value in 21 trading days.

WMT stock has a trailing 3-year beta of 0.34, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $1.65 a share in the trailing twelve months. The stock’s value has surged 1.81 percent year to date (YTD) against a decline of -4.85 percent in 12 month’s time. The company’s shares still trade -13.77 percent away from its 1-year high of $109.98 and 15.97 percent up from 52-week low of $81.78. The average consensus rating on the company is 2.3, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of Walmart Inc. (WMT) are trading at a P/E ratio of 57.06 times earnings reported for the past 12 months. The industry WMT operates in has an average P/E of 45.35. Its P/E ratio went as low as 14.53X and as high as 33.21 over the 5-year span. Further, it is sporting a 0.54 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.3. 25.2 percent is the gross profit margin for Walmart Inc. and operating margin sits at 2.8 percent. Along with this, the net profit margin is 1 percent.