Hexagon Capital Partners Cuts Walmart Stake Amid Earnings Beat
Hexagon Capital Partners LLC, a significant institutional investor in Walmart Inc. (WMT), has reduced its stake in the company by selling 48,092 shares during the second quarter. This move was part of the firm's overall reduction in its position in Walmart, with Hexagon Capital Partners LLC owning 2,153,623 shares after the sale.
The sale represents a 2.2% decrease in Hexagon Capital Partners LLC's holdings in Walmart, which make up approximately 34.3% of the firm's total portfolio. The value of Hexagon Capital Partners LLC's stake in Walmart was around $243.9 million at the end of the most recent quarter.
This development comes as Walmart reported strong earnings and revenue growth for its second quarter, with adjusted earnings per share (EPS) coming in at $0.81 and revenue reaching $187.94 billion. The company's global e-commerce sales rose 23%, advertising revenue increased 38%, and global membership revenue grew 17%.
However, Walmart also reported a decline in U.S. comparable sales growth to 2.6%, which is below expectations near 3.5%. Additionally, the company's third-quarter guidance fell short of consensus, with adjusted EPS projected at $0.62-$0.64 versus $0.68 expected.
Despite this, analysts remain bullish on Walmart's long-term prospects, with many retaining buy ratings and price targets ranging from $120 to $140.