JIM WALTON Takes Money Off The Table, Sells $21.02M In Walmart Stock

Disclosed on March 14, JIM WALTON, 10% Owner at Walmart WMT, executed a substantial insider sell as per the latest SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Thursday showed that WALTON sold 345,000 shares of Walmart. The total transaction amounted to $21,020,505.

As of Friday morning, Walmart shares are up by 0.07%, currently priced at $61.06.

All You Need to Know About Walmart

Walmart serves as the preeminent retailer in the United States, with its strategy predicated on superior operating efficiency and offering the lowest priced goods to consumers to drive robust store traffic and product turnover. Walmart augmented its low-price business strategy by offering a convenient one-stop shopping destination with the opening of its first supercenter in 1988.Today, Walmart operates over 4,600 stores in the United States (5,200 including Sam's Club) and over 10,000 stores globally. Walmart generated over $440 billion in domestic namesake sales in fiscal 2024, with Sam's Club contributing another $86 billion to the firm's top line. Internationally, Walmart generated $115 billion in sales. The company serves around 240 million customers globally each week.

Unraveling the Financial Story of Walmart

Revenue Growth: Over the 3 months period, Walmart showcased positive performance, achieving a revenue growth rate of 7.83% as of 31 January, 2024. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Staples sector.

Key Profitability Indicators:

• Gross Margin: The company maintains a high gross margin of 23.97%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): Walmart's EPS reflects a decline, falling below the industry average with a current EPS of 0.68.

Debt Management: Walmart's debt-to-equity ratio is below the industry average. With a ratio of 0.73, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: Walmart's current Price to Earnings (P/E) ratio of 31.89 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 0.76, Walmart's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 14.92 positions the company as being more valued compared to industry benchmarks.

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

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Why Pay Attention to Insider Transactions

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

A Deep Dive into Insider Transaction Codes

When analyzing transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase,while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Walmart's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.