Walton family sells $535M in Walmart stock as shares slip from highs

The Walton Family Holdings Trust sold about $535 million of Walmart Inc. shares through a series of transactions disclosed last week, reducing the founding family's stake as the retailer's stock trades more than 12% below its May record high.

The trust disposed of 3.86 million shares at a weighted-average price of about $120.99, according to a filing with the Securities and Exchange Commission. Additional sales included 539,737 shares at roughly $121.78 and 24,716 shares at about $122.42. The trust also transferred 886,000 shares to a beneficiary without receiving compensation.

Even after the sales, the trust continues to hold more than 502 million Walmart shares. The transactions came alongside other insider sales: Executive Vice President Daniel Bartlett sold 1,385 shares at $119.83 under a pre-arranged 10b5-1 trading plan, EVP Latriece Watkins sold 11,000 shares at $118.97, and Director C. Douglas Mcmillon sold 19,416 shares at $118.63, according to separate filings.

Walmart shares have fallen from a record $135.15 in May to about $118, giving the company a market capitalization of roughly $940 billion. The stock trades at a price-to-earnings multiple of 41.3, a level that prompted Erste Group to downgrade the retailer to Hold from Buy earlier this month, citing valuation concerns. Of 42 analysts tracked by Koyfin, 36 rate the stock a Strong Buy or Buy, while four recommend Hold.

The insider sales come at a time when Walmart's business fundamentals remain intact. The company reported first-quarter revenue of $177.75 billion, beating the consensus estimate of $174.84 billion, and posted earnings per share of $0.66, in line with analyst expectations. Revenue rose 7.4% year over year. Walmart has guided for fiscal 2027 EPS of $2.75 to $2.85 and second-quarter EPS of $0.72 to $0.74.

For shareholders, the Walton family's decision to reduce its position — even modestly relative to its total holdings — introduces a psychological overhang on a stock already grappling with valuation questions. Investors will watch Walmart's second-quarter earnings report, expected in August, for signs that the company's e-commerce and advertising growth can justify its premium multiple.

This article is for informational purposes only and does not constitute investment advice.