Walmart 10% Owner Sold $170.98M In Company Stock

Disclosed on September 19, ALICE WALTON, 10% Owner at Walmart WMT, executed a substantial insider sell as per the latest SEC filing.

What Happened: WALTON's decision to sell 2,163,616 shares of Walmart was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value of the sale is $170,979,096.

Monitoring the market, Walmart's shares up by 1.18% at $78.96 during Friday's morning.

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 company's top line. Internationally, Walmart generated $115 billion in sales. The retailer serves around 240 million customers globally each week.

Walmart: A Financial Overview

Revenue Growth: Walmart's revenue growth over a period of 3 months has been noteworthy. As of 31 July, 2024, the company achieved a revenue growth rate of approximately 4.77%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Staples sector.

Profitability Metrics: Unlocking Value

• Gross Margin: With a high gross margin of 25.11%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Walmart's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 0.56.

Debt Management: Walmart's debt-to-equity ratio is below the industry average at 0.73, reflecting a lower dependency on debt financing and a more conservative financial approach.

In-Depth Valuation Examination:

• Price to Earnings (P/E) Ratio: Walmart's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 40.65.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 0.95 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Walmart's EV/EBITDA ratio, surpassing industry averages at 18.43, positions it with an above-average valuation in the market.

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

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The Relevance of Insider Transactions

Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.

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.

Exploring Key Transaction Codes

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.

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

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