Walmart Inc. (NYSE:WMT) President and CEO C. Douglas McMillon has sold a portion of his company stock, according to a recent filing with the Securities and Exchange Commission. The transaction, which took place on March 28, involved the sale of 29,124 shares at a price of $60.445 each, totaling over $1.7 million.
The sale was executed under a Rule 10b5-1 trading plan, which allows insiders to establish pre-arranged plans to sell stocks at a predetermined time to avoid accusations of insider trading. This particular plan was entered into during an open trading window and was previously disclosed by Walmart in a Form 8-K filing on February 24, 2023.
Following the transaction, McMillon's direct holdings in Walmart stock have been adjusted to 4,047,766.788 shares, reflecting the recent 3-for-1 stock split effective February 23, 2024, and additional shares acquired through the Walmart Inc. Associate Stock Purchase Plan.
The CEO's indirect holdings through various family trusts remain substantial. These include 415,203 shares held by a trust for his children, 178,689 shares by a trust for his wife, and 395,970 shares by his wife's trust for their children and McMillon himself. Additionally, 6,664.3471 shares are held indirectly through a 401(k) plan, with the balance also adjusted for the stock split and reflecting shares acquired through the Walmart Inc. 401(k) Plan.
Investors often watch the buying and selling activities of company executives as an indicator of their confidence in the firm's future prospects. McMillon's recent transaction may thus be of interest to Walmart shareholders and potential investors.
InvestingPro Insights
In light of Walmart Inc.'s CEO C. Douglas McMillon's recent sale of company stock, investors might benefit from a closer look at the company's financial health and market performance through real-time data provided by InvestingPro. Walmart has shown resilience and consistent growth, as evidenced by a market capitalization of $483.16 billion and a revenue growth of 6.03% over the last twelve months as of Q4 2024. This growth is a testament to the company's strong position in the Consumer Staples Distribution & Retail industry.
InvestingPro Tips highlight that Walmart has a perfect Piotroski Score of 9, indicating strong financial health, and has raised its dividend for 29 consecutive years, reflecting a commitment to shareholder returns. Moreover, the company has maintained dividend payments for 52 consecutive years, showcasing its reliability and long-term approach to investor relations.
From a valuation standpoint, Walmart is trading at a P/E ratio of 31.24, which adjusts to 27.29 for the last twelve months as of Q4 2024. This is paired with a PEG ratio of 0.91, suggesting that the stock may be reasonably valued in relation to its near-term earnings growth potential. Additionally, the company's stock is trading near its 52-week high, at 97.59% of the peak price, indicating strong market confidence.
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