Wal-Mart Stores Inc. (WMT) Downgraded by Zacks Investment Research
Wal-Mart Stores Inc. (NYSE:WMT) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Tuesday.
According to Zacks, “Estimates have been declining since past 30 days period after Wal-Mart reported its second quarter fiscal 2017 results. While both earnings and revenues exceeded the Zacks Consensus Estimate, unfavorable currency and higher investments in wages and e-commerce activities took a toll on the company’s results. Encouragingly, Wal-Mart is focused on its building its e-commerce capabilities, as evidenced by its recent deal with JD.com in China and Jet.com acquisition in the U.S. The company has also raised its earnings guidance to reflect the Jet.com acquisition. However, huge investments in e-commerce initiatives and higher wages to its workers and training them are increasing the expense burden. The recent move to raise the minimum salary for entry-level store managers will also add to the costs. This along with unfavorable currency will remain headwinds.”
A number of other research firms also recently issued reports on WMT. KeyCorp initiated coverage on shares of Wal-Mart Stores in a research note on Thursday, September 29th. They set an “overweight” rating and a $90.00 price target on the stock. Credit Suisse Group AG initiated coverage on shares of Wal-Mart Stores in a research note on Friday, September 16th. They set an “outperform” rating and a $80.00 price target on the stock. Guggenheim initiated coverage on shares of Wal-Mart Stores in a research note on Friday, September 30th. They set a “buy” rating and a $82.00 price target on the stock. JPMorgan Chase & Co. set a $72.00 price target on shares of Wal-Mart Stores and gave the company a “neutral” rating in a research note on Monday, October 10th. Finally, Royal Bank Of Canada increased their target price on shares of Wal-Mart Stores from $73.00 to $76.00 and gave the company an “underperform” rating in a research note on Friday, August 19th. Four analysts have rated the stock with a sell rating, sixteen have assigned a hold rating, nine have given a buy rating and two have given a strong buy rating to the stock. The company has an average rating of “Hold” and a consensus price target of $75.38.
This story is the sole property of American Banking News and it was originally published by American Banking News. If you are reading this story on another website, that means this article was illegally copied and re-published to this website in violation of U.S. and International copyright law. The original version of this article is available at https://www.americanbankingnews.com/2016/10/18/wal-mart-stores-inc-wmt-downgraded-by-zacks-investment-research.html
Shares of Wal-Mart Stores (NYSE:WMT) traded up 0.26% during midday trading on Tuesday, hitting $68.40. 1,028,269 shares of the stock were exchanged. The firm has a 50 day moving average of $71.07 and a 200-day moving average of $70.96. Wal-Mart Stores has a 12 month low of $56.30 and a 12 month high of $75.19. The stock has a market cap of $211.58 billion, a P/E ratio of 14.73 and a beta of 0.20.
Wal-Mart Stores (NYSE:WMT) last released its quarterly earnings results on Thursday, August 18th. The retailer reported $1.07 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.02 by $0.05. The company had revenue of $120.90 billion for the quarter, compared to the consensus estimate of $119.33 billion. Wal-Mart Stores had a net margin of 3.04% and a return on equity of 17.93%. Wal-Mart Stores’s revenue was up .5% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.08 earnings per share. Equities research analysts anticipate that Wal-Mart Stores will post $4.34 EPS for the current year.
In other Wal-Mart Stores news, major shareholder Alice L. Walton sold 3,142,846 shares of Wal-Mart Stores stock in a transaction on Wednesday, August 24th. The shares were sold at an average price of $72.41, for a total transaction of $227,573,478.86. Following the sale, the insider now owns 6,748,580 shares of the company’s stock, valued at approximately $488,664,677.80. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, major shareholder Jim C. Walton sold 3,502,398 shares of Wal-Mart Stores stock in a transaction on Monday, August 22nd. The stock was sold at an average price of $73.02, for a total transaction of $255,745,101.96. Following the sale, the insider now directly owns 10,507,127 shares in the company, valued at approximately $767,230,413.54. The disclosure for this sale can be found here. Company insiders own 51.55% of the company’s stock.
A number of large investors have recently made changes to their positions in WMT. Vigilant Capital Management LLC raised its position in Wal-Mart Stores by 1,270.0% in the second quarter. Vigilant Capital Management LLC now owns 1,370 shares of the retailer’s stock valued at $100,000 after buying an additional 1,270 shares in the last quarter. Livingston Group Asset Management CO operating as Southport Capital Management bought a new position in Wal-Mart Stores during the second quarter valued at approximately $100,000. Americafirst Capital Management LLC bought a new position in Wal-Mart Stores during the second quarter valued at approximately $106,000. Seven Eight Capital LLC bought a new position in Wal-Mart Stores during the second quarter valued at approximately $111,000. Finally, Piershale Financial Group Inc. raised its position in Wal-Mart Stores by 0.6% in the second quarter. Piershale Financial Group Inc. now owns 1,607 shares of the retailer’s stock valued at $117,000 after buying an additional 10 shares in the last quarter. 29.56% of the stock is currently owned by institutional investors.
Wal-Mart Stores Company Profile
Wal-Mart Stores, Inc is engaged in the operation of retail, wholesale and other units in various formats around the world. The Company offers an assortment of merchandise and services at everyday low prices (EDLP). The Company operates through three segments: Walmart U.S., Walmart International and Sam’s Club.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Wal-Mart Stores Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Wal-Mart Stores Inc. and related companies with MarketBeat.com's FREE daily email newsletter.