Hedge Funds Reduce Walmart Shares in Strategic Move

Snack-Sized Version:

Callahan Advisors LLC sold over 30,000 Walmart shares in Q1, slashing its stake by nearly 15% while still holding a hefty position. Walmart remains Callahan’s 23rd largest holding, valued at over $15 million as of the filing. Meanwhile, other hedge funds quietly added to their Walmart positions, albeit in modest amounts. Insiders also cashed in, with top executives selling millions worth of shares, though their ownership dips were marginal. Analysts remained bullish overall, with most rating the stock a buy despite some trimming price targets. Walmart’s stock edged slightly lower, trading at around $94 with a 0.5% dip. Investors watching closely might see this as some healthy profit-taking rather than outright pessimism—because hey, even retail giants need a little spring cleaning now and then.

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Callahan Advisors LLC reduced its stake in Walmart by selling over 30,000 shares in the first quarter, cutting its position by nearly 15%. Even after the sell-off, Walmart still represents Callahan’s 23rd largest holding, worth over $15 million as of the filing. Other hedge funds also made moves during the period, mostly modest increases in their holdings. Firms like Whelan Financial and Annis Gardner Whiting Capital Advisors each added fewer than 100 shares, showing a cautious yet consistent interest in the retailer.

Walmart insiders didn’t sit idle either. Executive Vice President Kathryn Mclay sold 4,000 shares while CEO C. Douglas McMillon unloaded nearly 20,000 shares in late June. These insider trades represented less than half a percent reductions in their respective holdings but still totaled millions in value. Over the past three months, insiders sold nearly 143,000 shares worth over $13.7 million.

On the analyst front, the sentiment remained largely positive, albeit with some price target adjustments. Raymond James cut its target from $115 to $105, while Tigress Financial raised its target to $120 and maintained a buy rating. Citigroup also kept its buy rating, while Stifel Nicolaus downgraded its outlook slightly to hold. The consensus still leans moderately bullish, with a price target average of $106.67.

Walmart’s stock price reflected a minor pullback, trading down 0.5% at $94.36 with a market cap of $753 billion. The company’s Q1 earnings beat estimates slightly, posting $0.61 per share on $165 billion revenue. Despite insider selling and hedge fund trims, analysts expect Walmart to deliver steady results this year, showing that even big-box retailers can weather a little spring portfolio pruning and still keep the shelves stocked for growth.