Alice Walton sells more than $170 million in Walmart stock via Investing.com

In a notable move in the retail industry, Alice Walton, a significant shareholder of Walmart Inc. (NYSE: ), sold a substantial portion of its holdings in the company. Recent trades revealed that Walton sold a total of 2,219,617 shares of Walmart stock, worth more than $170 million. These sales were made over several days, with prices ranging from $78.0818 to $79.8263 per share.

Sales took place on September 17th and 19th, with 1,064,321 shares sold at an average price of $78.7295 on the first day and 739,679 shares at an average price of $79.8263. In the second day, Walton sold 247,783 shares at an average price of $78.0818, followed by a smaller trade of 111,833 shares at an average price of $78.6213.

These transactions represent a significant divestiture by Walton, which holds a substantial stake in Walmart through direct holdings and trusts. According to the report, Walton still owns more than 603 million shares indirectly through the trust after the sale, and Walton Enterprises, LLC, of ​​which he is a member, owns more than 3 billion shares.

The sales come alongside other Walton transactions that did not involve a change in beneficial ownership. These included distributions by the Walton Family Holdings Trust to a beneficiary totaling 993,000 shares on September 17 and 1,630,000 shares on September 18. In addition, a charitable contribution of 2,067,000 shares was made on September 17.

As one of the heirs to the Walmart fortune, Alice Walton’s financial moves are closely watched by investors and market analysts. These recent transactions provide a glimpse into the Walton family’s management of Walmart properties.

Walmart investors will continue to monitor the activity of major shareholders like Walton, as their trades can provide insights into their confidence in the company’s future performance and strategic direction.

In other recent news, Samsung ( KS: ) and Xiaomi ( OTC: ) are facing allegations of antitrust practices in India, according to reports from the Competition Commission of India (CCI). These major smartphone makers, along with others, are accused of violating local competition laws by exclusively launching products on the platforms of Amazon (NASDAQ:) and Flipkart. Meanwhile, Walmart’s chief financial officer, John David Rainey, established a predetermined share trading plan under Rule 10b5-1 of the Securities Exchange Act of 1934. This plan allows for the sale of a predetermined number of shares at specified times .

In the world of financial analysis, Walmart has been the focus of several firms, including TD Cowen, Jefferies, Evercore ISI and DA Davidson, all of which maintained positive ratings and adjusted their price targets. TD Cowen maintained its Buy rating, highlighting strategic growth areas such as seasonal merchandise and the Walmart+ membership program. Jefferies raised Walmart’s price target to $90, maintaining a Buy rating, following news of the company’s e-commerce strategies and use of artificial intelligence. Evercore ISI raised its price target on Walmart to $80, following the company’s exit from its stake in JD (NASDAQ:).com . Finally, DA Davidson reiterated a Buy rating and $85 price target on Walmart, citing the company’s ability to grow market share and increase profit margins. These are recent developments that investors should keep in mind.

InvestingPro Insights

Amid Alice Walton’s significant divestment, investors are keeping a close eye on the financial health and market performance of Walmart Inc. (NYSE:WMT). With a substantial market capitalization of $628.11 billion, Walmart is a giant in the retail sector. However, the company currently trades at a high multiple to earnings with a P/E ratio of 40.51, suggesting a premium valuation compared to its immediate earnings potential.

InvestingPro data indicates that Walmart posted solid revenue growth of 5.43% in the trailing twelve months through Q2 2023, underscoring its ability to expand sales amid challenging market conditions. Additionally, the company has demonstrated strong returns over the past three months with a total price return of 17.24%, reflecting positive investor sentiment.

One of InvestingPro’s standout tips for Walmart includes its commendable track record of 29 consecutive years of dividend growth, demonstrating its commitment to returning value to shareholders. This is also supported by a dividend yield of 1.05% at the end of 2024. Investors may also find it relevant that Walmart has maintained its dividend payments for 52 consecutive years, signaling financial stability and a policy favorable to shareholders.

For those looking to dig deeper into Walmart’s financials and strategic positioning, InvestingPro offers additional insights and advice. There are currently 15 additional InvestingPro tips available that provide comprehensive insight into Walmart’s performance and future prospects, accessible at https://www.investing.com/pro/WMT.

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