Walmart CEO Jim Walton is selling more than $170 million in company stock to Investing.com

In a series of transactions, Jim Walton, a significant shareholder of Walmart Inc. (NYSE: ), sold a substantial amount of the company’s stock, according to recent filings. The sales, which took place between September 17 and 19, 2024, involved the disposal of 2,472,613 shares of Walmart stock, totaling approximately $170.98 million.

The trades were executed at various prices, with weighted average sales prices ranging from $78.0818 to $79.8263 per share. On September 17, Walton sold 1,064,321 shares at an average price of $78.7295, followed by a sale of 739,679 shares the same day at an average price of $79.8263. On September 19, two separate sales took place: 247,783 shares were sold at an average price of $78.0818 and another 111,833 shares were sold at an average price of $78.6213.

These sales were made through a trust, with Walton acting as trustee. The documents indicate that the shares sold were indirectly owned by the trust, suggesting the transactions were part of trust-related activities. Notably, the filings also report distributions of Walmart common stock from the trust to beneficiaries that involved no consideration. Specifically, on September 17th a distribution of 993,000 shares took place, and on September 18th another 1,630,000 shares were distributed.

Jim Walton, a member of Walmart’s founding family, continues to own a substantial amount of Walmart stock, both directly and indirectly. The documents include a disclaimer from Walton stating that he disclaims beneficial ownership of the reported securities held by the trust and Walton Enterprises, LLC, except to the extent of his pecuniary interest therein.

Investors and analysts often monitor insider trades like these to gain insight into executive confidence and the health of the company. However, transactions by large shareholders, particularly those by family trusts, may be part of broader estate or financial planning strategies and do not necessarily reflect direct insights into the company’s operational performance.

In other recent news, Samsung (KS: ) and Xiaomi (OTC: ) are under scrutiny by the Competition Commission of India (CCI) for alleged antitrust practices in collaboration with Amazon (NASDAQ: ) and Flipkart. The allegations suggest a violation of local competition laws through coordinated launches of exclusive products on these e-commerce platforms. The CCI’s investigation has led to extensive reports implicating these smartphone manufacturers and may lead to legal challenges.

Meanwhile, Walmart’s chief financial officer, John David Rainey, established a predetermined stock trading plan under Rule 10b5-1 of the Securities Exchange Act of 1934. This plan allows Rainey to sell a predetermined number of shares at certain times, a common practice among corporate executives. to avoid allegations of insider trading. The plan includes the sale of 38,000 shares in the first two scheduled trades, with additional monthly sales of 2,200 shares.

In terms of analyst ratings, several firms maintained positive outlooks on Walmart. TD Cowen maintained its buy rating, highlighting the company’s strategic growth areas and narrowing of e-commerce losses. Similarly, Jefferies raised Walmart’s price target to $90, maintaining a buy rating, following news about the company’s e-commerce strategies and use of artificial intelligence. Evercore ISI raised its price target on Walmart to $80 after the company divested its stake in JD (NASDAQ:).com . These recent developments provide investors with a snapshot of the current landscape for these prominent companies.

InvestingPro Insights

Amid Jim Walton’s recent insider trading, a deeper look at Walmart Inc. (WMT) through InvestingPro’s data and advice can provide investors with additional context. Walmart has been a prominent player in the consumer goods distribution and retail industry, and its financials reflect its market position. With a market capitalization of $628.11 billion, Walmart is a heavyweight in the retail sector. The company’s price-to-earnings (P/E) ratio is 40.51, suggesting that investors are willing to pay a premium for Walmart’s earnings. This is further underlined by the company’s high Price/Book multiple of 7.43.

InvestingPro Tips points out that Walmart has a history of consistent dividend payments, maintaining dividend payments for 52 consecutive years and increasing its dividend for 29 consecutive years. This could be particularly attractive to income-focused investors. In addition, the company has seen a strong return over the last three months with a total price return of 17.24% and a strong price increase over the past six months with a total price return of 30.65%.

However, not all indicators are positive. According to InvestingPro Tips, 23 analysts have downgraded their earnings for the next period, which could raise concerns about near-term performance. In addition, Walmart’s short-term liabilities exceed its liquid assets, indicating potential liquidity risks. For investors who want more detailed analysis and other InvestingPro tips, there are 15 more tips available that can provide a more comprehensive understanding of Walmart’s financial health and future prospects.

For those interested in examining Walmart’s financial information and insider trading in detail, visiting the InvestingPro platform at https://www.investing.com/pro/WMT will provide a wealth of data and insight.

This article was generated with support from AI and reviewed by an editor. For more information, see T&C.