The Walton Family Holdings Trust, a majority shareholder (more than 10% owner) of the American big-box retailer Walmart (WMT) sold common stock worth $248.93 million last week. This is the fifth big Informative Sell transaction by the trust this year, implying a steady reduction in its holdings. The Walton Family Holdings Trust, owned by the Walton Family, is the largest shareholder of the retailer and also has the most voting power.
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Walmart was founded about six decades ago by The Walton Family brothers, Sam and Bud Walton. Notably, the Walton family’s combined wealth positions them as one of the richest families in the world. As of date, there are three heirs of the Walton family, namely, Jim Walton, Alice Walton, and Rob Walton. They are also the co-trustees of the Walton Family Holdings Trust.
A corporate insider’s share sale usually signals caution about the company’s future potential. However, an insider might sell shares for other reasons, such as financial or personal obligations.
A Closer Look at the Insider’s Transactions
As per Form 4 filed with the SEC on May 23, the Walton Family Holdings Trust sold 2,582,035 WMT stock between May 21 and May 23. Shares were sold in four tranches at weighted average prices ranging between $96.1012 and $97.2101 apiece. Additionally, the trust distributed another 45,000 Walmart shares to a beneficiary of the Trust.
Following the latest share sale, the trust still owns 571,739,478 WMT common shares worth $55.08 billion, based on Friday’s closing stock price of $96.34. The exact intent of the trust’s share sale remains unknown at the moment.
WMT stock currently has a Very Negative Insider Confidence Signal on TipRanks, based on Informative Sell transactions worth $2.1 billion, undertaken in the last three months.
It is important to keep an eye on the Informative trades of corporate insiders, given their knowledge of a company’s growth potential. Interestingly, TipRanks offers daily insider transactions as well as a list of top corporate insiders. It also provides a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.
Is Walmart a Good Stock to Buy Now?
Following Walmart’s better-than-expected Q1FY26 earnings result, analysts have awarded WMT stock a “Strong Buy” consensus rating. This is based on 28 Buys and two Hold ratings on TipRanks. Also, the average Walmart price target of $109.38 implies 13.5% upside potential from current levels. Year-to-date, WMT stock has gained 7.2%.
