On October 2, 2023, John Rainey, the Executive Vice President of Walmart Inc (WMT, Financial), sold 1,000 shares of the company. This move is part of a larger trend for the insider, who has sold a total of 20,052 shares over the past year and has not made any purchases.
Walmart Inc is a multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores. The company is headquartered in Bentonville, Arkansas, and was founded by Sam Walton in 1962. Today, it is one of the world's largest companies by revenue, with over $500 billion in annual revenue.
The insider's recent sale has raised questions about the relationship between insider trading and the stock price. Over the past year, there has been a total of 1 insider buy and 101 insider sells for Walmart Inc. This trend suggests that insiders may be taking advantage of high stock prices to cash in on their investments.
On the day of the insider's recent sale, shares of Walmart Inc were trading for $159.5 each, giving the company a market cap of $433.34 billion. The price-earnings ratio was 30.96, which is higher than both the industry median of 16.95 and the company's historical median price-earnings ratio.
According to the GuruFocus Value, which is an intrinsic value estimate based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates from Morningstar analysts, Walmart Inc is fairly valued. With a price of $159.5 and a GuruFocus Value of $162.90, the stock has a price-to-GF-Value ratio of 0.98.
While the insider's recent sale may raise some eyebrows, it's important to remember that insider trading is just one of many factors that can influence a stock's price. Other factors, such as the company's financial performance, industry trends, and broader market conditions, can also play a significant role. As always, investors should do their own research and consider a variety of factors before making investment decisions.