Traders Buy Wal-Mart Stores Inc. (WMT) on Weakness on Analyst Downgrade
Traders purchased shares of Wal-Mart Stores Inc. (NYSE:WMT) on weakness during trading hours on Monday after Royal Bank Of Canada lowered their price target on the stock from $76.00 to $75.00. $170.81 million flowed into the stock on the tick-up and $71.79 million flowed out of the stock on the tick-down, for a money net flow of $99.02 million into the stock. Of all companies tracked, Wal-Mart Stores had the 6th highest net in-flow for the day. Wal-Mart Stores traded down ($0.72) for the day and closed at $67.98
WMT has been the subject of a number of other reports. Jefferies Group set a $86.00 price target on Wal-Mart Stores and gave the stock a “buy” rating in a report on Tuesday, October 4th. Deutsche Bank AG reiterated a “hold” rating and set a $77.00 price target (up from $68.00) on shares of Wal-Mart Stores in a report on Tuesday, August 2nd. Buckingham Research reiterated a “neutral” rating on shares of Wal-Mart Stores in a report on Thursday, August 18th. Vetr downgraded Wal-Mart Stores from a “buy” rating to a “hold” rating and set a $76.24 target price for the company. in a research note on Monday, August 8th. Finally, Nomura set a $81.00 target price on Wal-Mart Stores and gave the company a “buy” rating in a research note on Friday, August 19th. Three investment analysts have rated the stock with a sell rating, nineteen have assigned a hold rating, nine have issued a buy rating and two have given a strong buy rating to the stock. The company presently has an average rating of “Hold” and an average target price of $75.26.
In other Wal-Mart Stores news, major shareholder Alice L. Walton sold 3,142,846 shares of the business’s stock in a transaction on Wednesday, August 24th. The shares were sold at an average price of $72.41, for a total value of $227,573,478.86. Following the completion of the sale, the insider now directly owns 6,748,580 shares of the company’s stock, valued at $488,664,677.80. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Steven P. Whaley sold 1,100 shares of the business’s stock in a transaction on Friday, August 26th. The stock was sold at an average price of $71.46, for a total transaction of $78,606.00. Following the completion of the sale, the insider now directly owns 29,464 shares of the company’s stock, valued at $2,105,497.44. The disclosure for this sale can be found here. 51.55% of the stock is currently owned by company insiders.
A number of hedge funds have recently bought and sold shares of the company. Lawson Kroeker Investment Management Inc. NE increased its stake in Wal-Mart Stores by 0.5% in the third quarter. Lawson Kroeker Investment Management Inc. NE now owns 106,061 shares of the retailer’s stock valued at $7,649,000 after buying an additional 570 shares in the last quarter. Oliver Luxxe Assets LLC acquired a new stake in Wal-Mart Stores during the third quarter valued at $1,878,000. Bremer Trust National Association increased its stake in Wal-Mart Stores by 1.9% in the third quarter. Bremer Trust National Association now owns 13,577 shares of the retailer’s stock valued at $979,000 after buying an additional 253 shares in the last quarter. First American Bank increased its stake in Wal-Mart Stores by 3.3% in the third quarter. First American Bank now owns 36,813 shares of the retailer’s stock valued at $2,654,000 after buying an additional 1,176 shares in the last quarter. Finally, Independence Advisors LLC increased its stake in Wal-Mart Stores by 5.9% in the third quarter. Independence Advisors LLC now owns 4,108 shares of the retailer’s stock valued at $296,000 after buying an additional 228 shares in the last quarter. 29.55% of the stock is owned by institutional investors and hedge funds.
The firm has a market capitalization of $210.28 billion, a price-to-earnings ratio of 14.64 and a beta of 0.20. The firm has a 50 day moving average of $71.63 and a 200-day moving average of $70.99.
Wal-Mart Stores (NYSE:WMT) last announced its quarterly earnings data on Thursday, August 18th. The retailer reported $1.07 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $1.02 by $0.05. The firm had revenue of $120.90 billion for the quarter, compared to the consensus estimate of $119.33 billion. Wal-Mart Stores had a net margin of 3.04% and a return on equity of 17.93%. The company’s revenue was up .5% on a year-over-year basis. During the same period last year, the firm earned $1.08 EPS. On average, analysts anticipate that Wal-Mart Stores Inc. will post $4.34 EPS for the current fiscal year.
About Wal-Mart Stores
Wal-Mart Stores, Inc is engaged in the operation of retail, wholesale and other units in various formats around the world. The Company offers an assortment of merchandise and services at everyday low prices (EDLP). The Company operates through three segments: Walmart U.S., Walmart International and Sam’s Club.
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