This is what Walmart Inc.’s shareholding structure looks like (NYSE: WMT)

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Every investor in Walmart Inc. (NYSE: WMT) needs to know the most powerful shareholder groups. Large companies usually have institutions as shareholders, and we usually see insiders holding shares in smaller companies. Companies that were previously owned by the state tend to have fewer insiders.

With a market capitalization of US $ 409 billion, Walmart is pretty big. We would expect to see institutional investors on the register. Companies of this size are also generally well known to retail investors. Looking at our data on ownership groups (below), it appears that institutions own shares in the company. Let’s dig deeper into each type of owner to learn more about Walmart.

NYSE: Breakdown of WMT Ownership October 22, 2021

What does institutional ownership tell us about Walmart?

Many institutions measure their performance against an index that approximates the local market. Thus, they generally pay more attention to companies that are included in the major indices.

We can see that Walmart has institutional investors; and they own a good portion of the company’s shares. This implies that analysts working for these institutions have reviewed the action and appreciate it. But like everyone else, they could be wrong. When several institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes awry, several parties may compete with each other to sell stocks quickly. This risk is higher in a company without a history of growth. You can see Walmart’s historical revenue and revenue below, but keep in mind that there is always more to tell.

profit and revenue growthNYSE: WMT Earnings and Revenue Growth October 22, 2021

Walmart is not owned by hedge funds. Walton Enterprises, LLC is currently the largest shareholder in the company with 36% of the shares outstanding. With 11% and 4.7% of shares outstanding, respectively, Walton Family and The Vanguard Group, Inc. are the second and third largest shareholders.

A more detailed study of the register of shareholders showed us that 3 of the main shareholders hold a considerable share of the ownership of the company, through their 52% stake.

Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. There are a lot of analysts covering the stock, so you can look at expected growth quite easily.

Walmart Insider Property

The definition of company insiders can be subjective and vary from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company is accountable to the board of directors and the board must represent the interests of the shareholders. Notably, sometimes senior executives themselves sit on the board of directors.

Insider ownership is positive when it indicates that executives think like the real owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.

Our information suggests that Walmart Inc. insiders own less than 1% of the company. However, it is possible that insiders will have an indirect interest through a more complex structure. It’s a very large company, so it would be surprising to see insiders owning a large part of the company. Although their stake is less than 1%, we can see that the board members collectively own $ 3.6 billion in shares (at current prices). It’s always good to see at least one insider property, but it may be worth checking out if those insiders have sold.

General public property

The general public has a 21% stake in Walmart. While this group cannot necessarily take the lead, it can certainly have a real influence on how the business is run.

Owned by a private company

It appears that private companies own 47% of Walmart’s shares. It may be worth pursuing the question further. If related parties, such as insiders, have an interest in any of these private companies, this should be disclosed in the annual report. Private companies may also have a strategic interest in the business.

Next steps:

It’s always worth thinking about the different groups that own shares in a company. But to understand Walmart better, there are many other factors that we need to consider. For example, we discovered 4 warning signs for Walmart which you should know before investing here.

If you are like me, you might want to ask yourself if this business will grow or shrink. Fortunately, you can check out this free report showing analysts’ forecasts for its future.

NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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