Insider Decision: Walton Family Holdings Trust Offloads $740.91M Worth Of Walmart Stock

It was reported on May 20, that Walton Family Holdings Trust, 10% Owner at Walmart WMT executed a significant insider sell, according to an SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday, Trust sold 7,563,945 shares of Walmart. The total transaction value is $740,914,939.

Walmart shares are trading down 0.58% at $97.23 at the time of this writing on Wednesday morning.

Discovering Walmart: A Closer Look

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

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. 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.

Holistic Profitability Examination:

• Gross Margin: Achieving a high gross margin of 24.94%, the company performs well in terms of cost management and profitability within its sector.

• 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.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: Walmart's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 41.79.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 1.15, Walmart's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Walmart's EV/EBITDA ratio, surpassing industry averages at 20.43, positions it with an above-average valuation in the market.

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

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The Impact of Insider Transactions on Investments

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

When discussing 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 stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Transaction Codes To Focus On

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals 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.