Oxbow Advisors Lowers Walmart Stake Amid Institutional Adjustments

Oxbow Advisors LLC has reduced its stake in Walmart Inc. (NYSE: WMT) by 1.6% during the second quarter of 2023, as reported in the firm’s recent Form 13F filing with the Securities and Exchange Commission (SEC). Following the sale of 454 shares, Oxbow Advisors now holds a total of 28,660 shares, valued at approximately $2,802,000.

The adjustment comes as part of a broader trend among institutional investors, with several firms either increasing or decreasing their investments in Walmart. Notably, Weatherly Asset Management L.P. has boosted its holdings by 7.0%, acquiring an additional 3,696 shares to reach a total of 56,140 shares worth $5,489,000. Similarly, Gerber Kawasaki Wealth & Investment Management raised its position by 34.6%, now owning 38,213 shares valued at $3,355,000 after purchasing 9,831 shares last quarter.

Other institutional activity includes Ally Financial Inc., which took a new stake worth approximately $2,107,000, and Night Squared LP, also acquiring a new stake valued at about $1,052,000. Monument Capital Management made a significant move by increasing its holdings by 94.2%, now owning 55,004 shares valued at $4,829,000. Collectively, institutional investors own 26.76% of Walmart’s stock.

Analyst Ratings Reflect Optimism for Walmart

Walmart has recently received favorable ratings from several analysts. Tigress Financial raised its price target on Walmart shares from $120.00 to $125.00, maintaining a “buy” rating as of September 3, 2023. Similarly, Bank of America increased its price target to $125.00, also issuing a “buy” rating. Other notable ratings include Royal Bank of Canada’s “outperform” rating with a price target of $106.00, and Guggenheim, which set its target at $115.00, up from $112.00.

According to MarketBeat.com, Walmart currently holds an average rating of “Moderate Buy” based on evaluations from thirty-one investment analysts, with an average price target of $112.63.

Insider Trading Activity and Stock Performance

In related news, Walmart’s CEO, C. Douglas McMillon, sold 19,416 shares on July 24, 2023, at an average price of $95.58, totaling approximately $1,855,781. After the transaction, McMillon retained 4,412,398 shares, valued at around $421,737,000. This sale represented a 0.44% decrease in his ownership.

Additionally, Kathryn J. McLay, Executive Vice President, sold 4,000 shares on September 19, 2023, for $415,320, resulting in a 0.38% decrease in her holdings. Over the past ninety days, insiders sold a total of 136,363 shares worth $13,668,438, indicating that insiders hold 0.10% of the company’s stock.

Walmart’s stock opened at $106.30 on September 22, 2023. The company maintains a debt-to-equity ratio of 0.43, a quick ratio of 0.23, and a current ratio of 0.79. Its market capitalization stands at $847.51 billion, with a price-to-earnings (P/E) ratio of 39.96 and a P/E/G ratio of 5.14.

In its most recent earnings report, announced on August 21, 2023, Walmart reported earnings of $0.68 per share, falling short of the consensus estimate of $0.74 by $0.06. The retailer’s revenue for the quarter reached $169.34 billion, below analyst expectations of $174.02 billion. Despite this, the company’s quarterly revenue grew by 4.8% compared to the same period last year.

Walmart has forecasted its Q3 2026 earnings per share (EPS) guidance to be between 0.580 and 0.600, with a full-year guidance for FY 2026 set at 2.520 to 2.620 EPS. Analysts predict that Walmart will report an average of 2.55 EPS for the current year.

Walmart Inc. operates a diverse range of retail and eCommerce platforms worldwide, encompassing Walmart U.S., Walmart International, and Sam’s Club. The company provides a wide array of shopping options, including supercenters, supermarkets, and online marketplaces, striving to cater to the evolving needs of consumers.