Shares of Wal-Mart Stores Inc (NYSE:WMT) traded down 10.2% on Tuesday after the company announced weaker than expected quarterly earnings. The company traded as low as $94.10 and last traded at $94.11. 51,982,621 shares changed hands during trading, an increase of 402% from the average session volume of 10,359,950 shares. The stock had previously closed at $104.78.
The retailer reported $1.33 earnings per share for the quarter, missing the consensus estimate of $1.37 by ($0.04). Wal-Mart Stores had a return on equity of 16.92% and a net margin of 2.31%. The business had revenue of $135.15 billion during the quarter, compared to the consensus estimate of $133.63 billion. During the same quarter in the prior year, the firm posted $1.30 EPS. The company’s revenue for the quarter was up 4.2% on a year-over-year basis.
The company also recently disclosed a quarterly dividend, which will be paid on Monday, April 2nd. Shareholders of record on Friday, March 9th will be paid a dividend of $0.52 per share. This represents a $2.08 annualized dividend and a yield of 2.21%. This is a positive change from Wal-Mart Stores’s previous quarterly dividend of $0.51. Wal-Mart Stores’s payout ratio is presently 54.26%.
In related news, major shareholder Alice L. Walton sold 2,057,004 shares of the company’s stock in a transaction dated Tuesday, November 28th. The shares were sold at an average price of $96.69, for a total value of $198,891,716.76. Following the completion of the sale, the insider now directly owns 6,748,580 shares of the company’s stock, valued at $652,520,200.20. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, major shareholder Jim C. Walton sold 1,488,039 shares of the company’s stock in a transaction dated Thursday, November 30th. The stock was sold at an average price of $97.54, for a total transaction of $145,143,324.06. Following the completion of the sale, the insider now directly owns 10,507,224 shares of the company’s stock, valued at $1,024,874,628.96. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 8,462,022 shares of company stock valued at $821,845,857. 51.39% of the stock is owned by insiders.
Large investors have recently added to or reduced their stakes in the stock. Voya Investment Management LLC raised its holdings in Wal-Mart Stores by 10.9% in the second quarter. Voya Investment Management LLC now owns 2,983,092 shares of the retailer’s stock worth $225,760,000 after purchasing an additional 294,383 shares in the last quarter. Cutter & CO Brokerage Inc. raised its holdings in Wal-Mart Stores by 2.5% in the second quarter. Cutter & CO Brokerage Inc. now owns 8,067 shares of the retailer’s stock worth $611,000 after purchasing an additional 200 shares in the last quarter. Parkside Investments LLC bought a new position in Wal-Mart Stores in the third quarter worth about $344,000. State of Wisconsin Investment Board raised its holdings in Wal-Mart Stores by 23.1% in the second quarter. State of Wisconsin Investment Board now owns 2,095,792 shares of the retailer’s stock worth $158,610,000 after purchasing an additional 393,180 shares in the last quarter. Finally, Numeric Investors LLC raised its holdings in Wal-Mart Stores by 31.2% in the second quarter. Numeric Investors LLC now owns 1,179,674 shares of the retailer’s stock worth $89,278,000 after purchasing an additional 280,430 shares in the last quarter. 30.33% of the stock is owned by institutional investors.
The company has a market capitalization of $278,790.00, a price-to-earnings ratio of 25.03, a P/E/G ratio of 3.74 and a beta of 0.42. The company has a debt-to-equity ratio of 0.52, a current ratio of 0.81 and a quick ratio of 0.19.
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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 operates through three segments: Walmart U.S., Walmart International and Sam’s Club. The Walmart U.S. segment includes its mass merchant concept in the United States operating under the Walmart or Wal-Mart brands, as well as digital retail.
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