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BENTONVILLE, AR—Walmart Inc. (NYSE:WMT) President and CEO Doug McMillon has sold a significant portion of his holdings in the retail giant, amid the stock's impressive 80% surge over the past year. According to a recent SEC filing, McMillon sold 29,124 shares of Walmart common stock on November 27, 2024. The shares were sold at a price of $91.4364 each, resulting in a total transaction value of approximately $2.66 million. The sale comes as the $743.5 billion retail giant trades near its 52-week high, with technical indicators from InvestingPro suggesting the stock is in overbought territory.
Following this sale, McMillon retains direct ownership of over 3.8 million shares. Additionally, he holds various indirect ownership stakes through trusts and other entities, including shares held by a 401(k) plan and trusts for his children and wife.
The sale was executed under a Rule 10b5-1 trading plan, which allows company insiders to set up a predetermined schedule for selling stocks, typically to avoid concerns about insider trading. This plan was disclosed by Walmart in a Form 8-K filing earlier this year.
In other recent news, Walmart's third-quarter performance exceeded expectations, with an adjusted earnings per share (EPS) of $0.58, beating analysts' projection by $0.05. The company's consolidated revenues increased by 5.5%, U.S. comparable sales rose by 5.3%, and global eCommerce sales increased by 27%, with a 22% rise in the U.S. market. Kathryn McLay, CEO of Walmart International, has established a prearranged stock trading plan to sell 4,000 shares of Walmart common stock monthly, starting March 2025.
Several financial firms, including Barclays (LON:BARC), KeyBanc Capital Markets, Piper Sandler, Baird, Guggenheim, and RBC Capital Markets, have responded to these results by adjusting their outlooks on Walmart. Price targets have been raised, ranging from $90.00 to $100.00, with most firms maintaining positive ratings. Analysts attribute Walmart's success to strategic initiatives including expansion into advertising, merchant solutions, and last-mile delivery.
However, analysts also pointed out potential risks such as Walmart's high price-to-earnings ratio and the need for consistent execution. Despite these potential risks, expectations remain optimistic for the fourth quarter. These recent developments reflect the ongoing dynamics in the retail industry and the strategic moves made by Walmart to maintain its market position.
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