The Investors Sell Shares of Wal-Mart Stores Inc. (WMT) on Strength After Analyst Downgrade

The Investors Sell Shares of Wal-Mart Stores Inc. (WMT) on Strength After Analyst Downgrade

Investors sold shares of Wal-Mart Stores Inc. (NYSE:WMT) on strength during trading hours on Wednesday after BMO Capital Markets lowered their price target on the stock from $67.00 to $63.00. $70.02 million flowed into the stock on the tick-up and $149.78 million flowed out of the stock on the tick-down, for a money net flow of $79.76 million out of the stock. Of all stocks tracked, Wal-Mart Stores had the 4th highest net out-flow for the day. Wal-Mart Stores traded up $0.07 for the day and closed at $67.46

Several other equities research analysts have also issued reports on WMT. Jefferies Group set a $86.00 price objective on shares of Wal-Mart Stores and gave the company a “buy” rating in a research note on Tuesday, October 4th. Deutsche Bank AG reaffirmed a “hold” rating and issued a $77.00 price objective (up previously from $68.00) on shares of Wal-Mart Stores in a research note on Tuesday, August 2nd. Royal Bank Of Canada reduced their price objective on shares of Wal-Mart Stores from $76.00 to $75.00 and set an “underperform” rating for the company in a research note on Friday, October 7th. Buckingham Research reaffirmed a “neutral” rating on shares of Wal-Mart Stores in a research note on Thursday, August 18th. Finally, Vetr lowered shares of Wal-Mart Stores from a “buy” rating to a “hold” rating and set a $76.24 price objective for the company. in a research note on Monday, August 8th. Three analysts have rated the stock with a sell rating, nineteen have given a hold rating, nine have given a buy rating and two have given a strong buy rating to the company. Wal-Mart Stores currently has an average rating of “Hold” and an average price target of $74.93.

In related news, major shareholder Alice L. Walton sold 3,504,756 shares of the business’s stock in a transaction that occurred on Monday, August 29th. The shares were sold at an average price of $71.37, for a total transaction of $250,134,435.72. Following the completion of the sale, the insider now directly owns 6,748,580 shares of the company’s stock, valued at $481,646,154.60. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Steven P. Whaley sold 1,100 shares of the business’s stock in a transaction that occurred 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 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. Corporate insiders own 51.55% of the company’s stock.

Several large investors have recently bought and sold shares of the company. Canandaigua National Bank & Trust Co. increased its stake in Wal-Mart Stores by 10.1% in the third quarter. Canandaigua National Bank & Trust Co. now owns 13,147 shares of the retailer’s stock worth $948,000 after buying an additional 1,205 shares during the period. Prospera Financial Services Inc increased its stake in Wal-Mart Stores by 27.1% in the third quarter. Prospera Financial Services Inc now owns 15,592 shares of the retailer’s stock worth $1,125,000 after buying an additional 3,325 shares during the period. Nexus Investment Management Inc. increased its stake in Wal-Mart Stores by 7.1% in the third quarter. Nexus Investment Management Inc. now owns 207,675 shares of the retailer’s stock worth $14,978,000 after buying an additional 13,700 shares during the period. Atria Investments LLC increased its stake in Wal-Mart Stores by 25.6% in the third quarter. Atria Investments LLC now owns 23,087 shares of the retailer’s stock worth $1,665,000 after buying an additional 4,699 shares during the period. Finally, First National Bank of Omaha increased its stake in Wal-Mart Stores by 4.1% in the third quarter. First National Bank of Omaha now owns 8,050 shares of the retailer’s stock worth $581,000 after buying an additional 318 shares during the period. 29.55% of the stock is owned by institutional investors and hedge funds.

The firm has a 50 day moving average price of $71.48 and a 200-day moving average price of $70.97. The firm has a market capitalization of $208.67 billion, a price-to-earnings ratio of 14.52 and a beta of 0.20.

Wal-Mart Stores (NYSE:WMT) last released its earnings results on Thursday, August 18th. The retailer reported $1.07 EPS for the quarter, beating the consensus estimate of $1.02 by $0.05. Wal-Mart Stores had a net margin of 3.04% and a return on equity of 17.93%. The firm had revenue of $120.90 billion for the quarter, compared to analyst estimates of $119.33 billion. During the same period last year, the firm earned $1.08 EPS. The business’s quarterly revenue was up .5% compared to the same quarter last year. On average, analysts predict that Wal-Mart Stores Inc. will post $4.34 EPS for the current year.

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