BENTONVILLE, Ark.—Walmart Inc. (NYSE:WMT) President and CEO C. Douglas McMillon recently sold 29,124 shares of the company's common stock, according to a regulatory filing. The transaction, which took place on October 24, was executed at a weighted average price of $82.7942 per share, resulting in a total value of approximately $2.41 million.
This sale was carried out under a pre-arranged trading plan, known as a Rule 10b5-1 Plan, which McMillon entered during an open trading window. The plan was previously disclosed by Walmart in a Form 8-K filing on February 24, 2023. Following this transaction, McMillon retains direct ownership of 3,843,928.928 shares of Walmart stock.
In addition to his direct holdings, McMillon also holds various indirect interests in the company through trusts and other entities, including shares held by a 401(k), a trust for children, and a trust for his wife, among others. These indirect holdings amount to several hundred thousand additional shares.
The sale comes as McMillon continues to lead the retail giant amidst a challenging economic environment and evolving retail landscape.
In other recent news, Walmart Inc. has made significant strides in its customer service offerings, introducing an express delivery option for prescription medications. The company has also expanded its delivery services to include general merchandise in a single order. These developments are currently operational in six states with plans for extension to 49 states by the end of January.
In the realm of financial news, several firms have adjusted their outlook on Walmart. TD Cowen reaffirmed its Buy rating citing the company's innovative technology and new revenue streams. KeyBanc Capital Markets and Oppenheimer have both raised their price targets for Walmart, attributing it to the company's growth in the grocery sector and its U.S. e-commerce sales growth. BofA Securities also increased its price target for Walmart, noting the company's early holiday deals.
On the legal front, Walmart has reached a $123 million settlement in an opioid case, pending court approval. The case involved shareholder derivative actions related to the company's handling of prescription opioids. As part of the resolution, Walmart's insurance carriers will pay the company $123 million, less any attorneys' fees and litigation expenses awarded by the court to the plaintiffs' counsel. Walmart has also agreed to maintain specific corporate governance practices for at least five years.
In other company news, Walmart's Mexican subsidiary, Walmex, is under scrutiny by Mexico's antitrust authority, Cofece, for allegations of anti-competitive behavior. The company is also expanding its pet care services in southern states and working towards sustainability targets with Unilever (LON:ULVR). These are some of the recent developments at Walmart Inc.
InvestingPro Insights
While Walmart's CEO C. Douglas McMillon recently sold a portion of his shares, the company's stock continues to perform strongly in the market. According to InvestingPro data, Walmart has seen a remarkable 55.12% price total return over the past year, and an even more impressive 59.56% year-to-date return. This robust performance has pushed the stock to trade near its 52-week high, currently at 99% of that peak.
Walmart's financial health appears solid, with the company boasting a substantial market capitalization of $663.08 billion. The retail giant's revenue for the last twelve months stands at an impressive $665.03 billion, with a 5.43% growth rate. This growth is reflected in the company's EBITDA, which has increased by 9.54% over the same period.
InvestingPro Tips highlight Walmart's strong dividend history, having raised its dividend for 29 consecutive years and maintained payments for 52 years. This commitment to shareholder returns is further underscored by a current dividend yield of 1.0% and a dividend growth rate of 9.21% over the last twelve months.
However, investors should note that Walmart is trading at a high P/E ratio of 42.85, which is elevated relative to its near-term earnings growth. This valuation metric suggests that the stock may be priced at a premium compared to its earnings potential.
For those interested in a deeper analysis, InvestingPro offers 15 additional tips on Walmart, providing a comprehensive view of the company's financial position and market performance. These insights can be valuable for investors looking to make informed decisions about their Walmart holdings or potential investments.
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