Technicals Say Walmart Inc. (WMT) Is Worth Holding

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As of Wednesday close, Walmart Inc.’s (NYSE:WMT) stock was up $0.73, moving up 0.48 percent to $152.42. The average number of shares traded per day over the past five days has been 6,584,020 shares. 5 times new highs have been achieved over the past 5 days, with a $3.92 gain in that time frame. In the last twenty days, the average volume was 7,269,745, while in the previous 50 days, it was 6,582,986.

Since last month, WMT stock rose 8.82%. Shares of the company fell to $137.13 on 10/24/22, the lowest level in the past month. A 52-week high of $160.77 was reached on 04/21/22 after having rallying from a 52-week low of $117.27. Since the beginning of this year, WMT’s stock price has risen by 5.34% or $7.73, and marked a new high 17 times. However, the stock has declined by -5.19% since its 52-week high.


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WMT stock investors should be aware that Walmart Inc. (WMT) stock had its last reported insider trading activity 4 days ago on Nov 21. Brand Rachel L, the Executive Vice President of the company, disposed of 4,853 shares for $150.66 on Nov 21. It resulted in a $731,135 divestment by the insider. WALTON JIM C sold 250,000 shares at an average price of $149.48 on Nov 18. The insider now owns 277,227,135 shares following the transaction. On Nov 18, 10% Owner WALTON ALICE L sold 250,000 shares at $149.48 apiece. The transaction was valued at $37,369,450.

Valuation Metrics

Right now, Walmart Inc. (WMT) has a P/E ratio of about 47.10. The stock’s beta is 0.52. Besides these, the trailing price-to-sales (P/S) ratio of 0.68, the price-to-book (PB) ratio of 5.38.

The latest dividend of $0.56 per share was paid out, remained unchanged from last year’s $0.56. On Friday February 18 2022, a $0.01 dividend increase was announced.

Financial Health

In the three months ended July 30, Walmart Inc.’s quick ratio stood at 0.20, while its current ratio was 0.80, showing that the company is not able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending July 30 was 0.44, and the total debt-to-equity ratio was 0.65. On the profitability front, the trailing twelve-month gross margin is 24.40% percent. In the year ended July 30, operating margins totaled 3.70%. Based on annual data, WMT earned $143.75 billion in gross profit and brought in $572.75 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 14.90%. Return on equity (ROE) for the past 12 months was 16.20%.

In Walmart Inc.’s quarter-end financial report for July 30, it reported total debt of $32.17 billion. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. WMT’s revenue rose 17.43% to $142.87 billion during the quarter, while net income inched up to $141.57 billion. While analysts expected Walmart Inc. to report $1.62 quarterly earnings, the actual figure was $1.77 per share, beating the consensus estimate by 9.30%. The liabilities of Walmart Inc. were 167.53 billion at the end of its most recent quarter ended July 30, and its total debt was $67.21 billion.

Technical Picture

This quick technical analysis looks at Walmart Inc.’s (WMT) price momentum. With a historical volatility rate of 35.92%, the RSI 9-day stood at 74.71% on 23 November.

With respect to its five-day moving average, the current Walmart Inc. price is up by +2.64% percent or $3.92. At present, WMT shares trade +7.99% above its 20-day simple moving average and +22.67% percent above its 100-day simple moving average. However, the stock is currently trading approximately +12.97% above its SMA50 and +10.46% above its SMA200.

Stochastic coefficient K was 93.75% and Stochastic coefficient D was 93.56%, while ATR was 2.99. Given the Stochastic reading of 93.74% for the 14-day period, the RSI (14) reading has been calculated as 71.06%. As of today, the MACD Oscillator reading stands at 3.93, while the 14-day reading stands at 6.15.

Analyst Ratings

KeyBanc Capital Markets launched its rating on Walmart Inc. (NYSE: WMT) to an Overweight in a note to investors on September 14, 2022. Walmart Inc. (WMT) has been rated Overweight by analysts. According to 0 brokerage firms, WMT is a sell, and 10 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 5 analysts rate Walmart Inc. stock as buy, with 22 recommending it as overweight.

With a median target price of $160.00, the current consensus forecast for the stock is $133.00 – $175.00. Based on these forecasts, analysts predict Walmart Inc. (WMT) will achieve an average price target of $159.73.

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