On February 8, 2023, Barclays initiated coverage of Walmart with a Overweight recommendation.

Analyst Price Forecast Suggests 17.48% Upside

As of February 9, 2023, the average one-year price target for Walmart is $164.73. The forecasts range from a low of $134.33 to a high of $184.80. The average price target represents an increase of 17.48% from its latest reported closing price of $140.22.

The projected annual revenue for Walmart is $612,054MM, an increase of 1.99%. The projected annual EPS is $6.13, an increase of 87.51%.

Walmart Declares $0.56 Dividend

On February 17, 2022 the company declared a regular quarterly dividend of $0.56 per share ($2.24 annualized). Shareholders of record as of December 8, 2022 received the payment on January 3, 2023. Previously, the company paid $0.55 per share.

At the current share price of $140.22 / share, the stock’s dividend yield is 1.60%. Looking back five years and taking a sample every week, the average dividend yield has been 1.81%, the lowest has been 1.41%, and the highest has been 2.51%. The standard deviation of yields is 0.30 (n=237).

The current dividend yield is 0.72 standard deviations below the historical average.

Additionally, the company’s dividend payout ratio is 0.67. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 0.06%, demonstrating that it has increased its dividend over time.

What are large shareholders doing?

AIM INVESTMENT FUNDS – Invesco Oppenheimer Developing Markets Fund Class R6 holds 149,212K shares representing 5.53% ownership of the company. In it’s prior filing, the firm reported owning 190,107K shares, representing a decrease of 27.41%. The firm increased its portfolio allocation in WMT by 7.41% over the last quarter.

GQGPX – GQG PARTNERS EMERGING MARKETS EQUITY FUND Investor Shares holds 91,476K shares representing 3.39% ownership of the company. In it’s prior filing, the firm reported owning 54,170K shares, representing an increase of 40.78%. The firm increased its portfolio allocation in WMT by 76.36% over the last quarter.

VEIEX – Vanguard Emerging Markets Stock Index Fund Investor Shares holds 70,964K shares representing 2.63% ownership of the company. In it’s prior filing, the firm reported owning 72,217K shares, representing a decrease of 1.77%. The firm increased its portfolio allocation in WMT by 21.09% over the last quarter.

VGTSX – Vanguard Total International Stock Index Fund Investor Shares holds 68,657K shares representing 2.55% ownership of the company. In it’s prior filing, the firm reported owning 67,692K shares, representing an increase of 1.41%. The firm increased its portfolio allocation in WMT by 20.01% over the last quarter.

IEMG – iShares Core MSCI Emerging Markets ETF holds 45,382K shares representing 1.68% ownership of the company. In it’s prior filing, the firm reported owning 45,437K shares, representing a decrease of 0.12%. The firm increased its portfolio allocation in WMT by 21.15% over the last quarter.

What is the Fund Sentiment?

There are 4123 funds or institutions reporting positions in Walmart. This is an increase of 60 owner(s) or 1.48% in the last quarter. Average portfolio weight of all funds dedicated to WMT is 0.70%, an increase of 4.45%. Total shares owned by institutions decreased in the last three months by 1.31% to 1,636,723K shares. The put/call ratio of WMT is 1.06, indicating a bearish outlook.

Walmart Background Information
(This description is provided by the company.)

Walmart Inc. helps people around the world save money and live better – anytime and anywhere – in retail stores, online, and through their mobile devices. Each week, over 265 million customers and members visit approximately 11,400 stores under 55 banners in 26 countries and eCommerce websites. With fiscal year 2020 revenue of $524 billion, Walmart employs over 2.2 million associates worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy and employment opportunity.

This article originally appeared on Fintel

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