Disclosed on June 4, Walton Family Holdings Trust, 10% Owner at Walmart WMT, executed a substantial insider sell as per the latest SEC filing.
What Happened: Trust’s decision to sell 1,016,000 shares of Walmart was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the sale is $100,432,391.
Walmart shares are trading up 0.06% at $99.41 at the time of this writing on Thursday morning.
All You Need to Know About Walmart
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.
Understanding the Numbers: Walmart’s Finances
Decline in Revenue: Over the 3 months period, Walmart faced challenges, resulting in a decline of approximately -8.28% in revenue growth as of 30 April, 2025. This signifies a reduction in the company’s top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Staples sector.
Profitability Metrics: Unlocking Value
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Gross Margin: Achieving a high gross margin of 24.94%, the company performs well in terms of cost management and profitability within its sector.
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Earnings per Share (EPS): Walmart’s EPS reflects a decline, falling below the industry average 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.
Exploring Valuation Metrics Landscape:
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Price to Earnings (P/E) Ratio: A higher-than-average P/E ratio of 42.46 suggests caution, as the stock may be overvalued in the eyes of investors.
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Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 1.17 as compared to the industry average, the stock might be considered overvalued based on sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company’s EV/EBITDA ratio 20.73 is above the industry average, suggesting that the market values the company more highly for each unit of EBITDA. This could be attributed to factors such as strong growth prospects or superior operational efficiency.
Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.
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Navigating the Impact of Insider Transactions on Investments
While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.
In the context of legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed 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.
Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.
Breaking Down the Significance of Transaction Codes
Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A denotes 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.
