Walmart – Sell

Shares of multinational retail company, Walmart, Inc. (WMT) have climbed about 6.6% over the past month. Last week, Walmart announced plans to expand its technology unit by adding 5,000 new professionals and opening two hubs in Toronto and Atlanta. Additionally, the company intends to invest $1 billion in Canada to boost technology and refurbish its stores.

With these new locations, Walmart will have a total of 17 tech hubs. Moreover, Walmart is also planning to expand its Baytown, Texas, supply chain campus with the addition of an over one million square foot distribution center. The new facility, which is expected to open in fall 2022, will be Walmart’s fourth in Baytown.

With these developments in mind, let us take a look at the changes in Walmart’s key risk factors that investors should know.

Risk Factors

According to the TipRanks Risk Factors tool, Walmart’s top risk category is Finance & Corporate, contributing 3 of the total 11 risks identified for the stock.

However, in its recent report, the company has added one key risk factor under the Ability to Sell risk category. Compared to a sector average of 6 Ability to Sell risk factors, Walmart has 2.

Walmart highlighted that its stakeholders expect the company to achieve substantial gains in certain priority issue areas under Environmental, Social, and Governance (ESG). The company periodically publishes information associated with its ESG undertakings and progress.

If it fails or is perceived to fail to achieve its ESG goals, then the company’s reputation may suffer, while support from customers or investors may also dwindle.

Hedge Fund Activity

According to TipRanks data, Wall Street’s top hedge funds have decreased holdings in Walmart by 10.4 million shares in the last quarter, indicating a very negative hedge fund confidence signal in the stock based on activities of 21 hedge funds. Notably, Bill Gates’s Bill & Melinda Gates Foundation Trust holds a stake worth about one billion dollars in Walmart.