A substantial insider sell was reported on May 29, by Walton Family Holdings Trust, 10% Owner at Walmart WMT, based on the recent SEC filing.
What Happened: Trust’s decision to sell 4,808,020 shares of Walmart was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value of the sale is $467,808,558.
Walmart shares are trading up 0.74% at $97.82 at the time of this writing on Friday morning.
Get to Know Walmart Better
Walmart is a leading retailer in the United States, with its strategy predicated on superior operating efficiency and offering the lowest priced goods to consumers to drive robust store traffic and product turnover. Walmart augmented its low-price business strategy by offering a convenient one-stop shopping destination with the opening of its first supercenter in 1988.Today, Walmart operates over 4,600 stores in the United States (5,200 including Sam’s Club) and over 10,000 locations globally. Walmart generated over $460 billion in domestic namesake sales in fiscal 2025, with Sam’s Club contributing another $90 billion to the company’s top line. Internationally, Walmart generated $120 billion in sales. The retailer serves around 270 million customers globally each week.
A Deep Dive into Walmart’s Financials
Revenue Growth: Walmart’s revenue growth over a period of 3 months has faced challenges. As of 30 April, 2025, the company experienced a revenue decline of approximately -8.28%. This indicates a decrease in the company’s top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Staples sector.
Exploring Profitability:
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Gross Margin: The company sets a benchmark with a high gross margin of 24.94%, reflecting superior cost management and profitability compared to its peers.
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Earnings per Share (EPS): With an EPS below industry norms, Walmart exhibits below-average bottom-line performance with a current EPS of 0.56.
Debt Management: With a below-average debt-to-equity ratio of 0.8, Walmart adopts a prudent financial strategy, indicating a balanced approach to debt management.
In-Depth Valuation Examination:
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Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 41.5, Walmart’s stock is perceived as being overvalued in the market.
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Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 1.14, Walmart’s stock is perceived as being overvalued in the market, particularly in relation to sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Boasting an EV/EBITDA ratio of 20.29, Walmart demonstrates a robust market valuation, outperforming industry benchmarks.
Market Capitalization: Exceeding industry standards, the company’s market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.
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Why Insider Transactions Are Key in Investment Decisions
Insider transactions shouldn’t be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.
Considering the legal perspective, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Pointing towards optimism, a company insider’s new purchase signals their positive anticipation for the stock to rise.
Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.
A Closer Look at Important Transaction Codes
Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Walmart’s Insider Trades.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
