Wal-Mart Stores, Inc. (WMT) Stock Falls Amid Sam’s Club Burger Recall Announcement


Wal-Mart Stores, Inc. (NYSE:WMT) shares have fallen slightly in morning trading after the company announce that their subsidiary, Sam’s Club has issued a recall for over 89,000 pounds of “Sam’s Choice Black Angus Vidalia Onion”. The reason? No, not bacteria, but “wood”.

That’s right, apparently there is a chance that your burgers could have extraneous wood materials in them, and this is reason enough to recall the ground meat.

If you purchased this product from Wal-Mart Stores, Inc.’s (NYSE:WMT) Sam’s Club between November 19, 2015 and December 9, 2015, you may want to check your package, as 2-lb. boxes containing 6 pieces of “Sam’s Choice Black Angus Beef Patties with 19% Vidalia ® Onion.” with Use By dates 05/17/2016; 05/29/2016; and 06/06/2016 are subject of the recall.

It should be interesting to see how investors react to shares of Wal-Mart Stores, Inc. (NYSE:WMT) today, and see if this news affects the company at all.The stock is down 0.52% or $0.33 following the news, hitting $62.59 per share. Approximately 17,061 shares traded hands. WMT shares have declined 15.58% since June 2, 2015 and are currently downtrending. It has underperformed the S&P500 by 10.89%.

From a total of 22 analysts covering Wal-Mart Stores Inc (NYSE:WMT) stock, 4 rate it a “Buy”, 1 a “Sell”, and 17 a “Hold”. This means that 18% of the ratings are positive. The highest target price is $84 while the lowest target price is $55. The mean of all analyst targets is $67.55 which is 7.92% above today’s ($62.59) stock price. Wal-Mart Stores Inc was the topic of 36 analyst reports since August 14, 2015 according to the firm StockzIntelligence Inc. M Partners maintained shares on November 18 with a “Neutral” rating. Credit Suisse downgraded shares to a”Neutral” rating and a $62 target share price in their report from an October 15. Citigroup initiated WMT stock in a recent report from November 9 with a “Neutral” rating. Bank of America downgraded the rating on October 15. Bank of America has a “Neutral” rating and a $65 price target on shares. Finally, S&P Research downgraded the stock to a “Hold” rating in a report they issued on an October 15.

The institutional sentiment increased to 1 in Q2 2015. It’s up 0.01, from 0.99 in 2015Q2. The ratio improved, as 106 funds sold all their Wal-Mart Stores, Inc. shares they owned while 518 reduced their positions. 86 funds bought stakes while 537 increased their total positions. Institutions now own 869.10 million shares which is 10.24% less than the previous share count of 968.23 million in 2015Q2.

Cook & Bynum Capital Management Llc holds 20.48% of its total portfolio in Wal-Mart Stores, Inc., equating to 529,529 shares. Cullinan Associates Inc owns 3.35 million shares representing 19.87% of their total US portfolio. Moreover, Rwwm Inc. has 15.74% of their total portfolio invested in the company, equating to 488,323 shares. The New York-based Gabalex Capital Management Llc has a total of 12.62% of their portfolio invested in the stock. General Re New England Asset Management Inc, a Connecticut-based fund reported 7.36 million shares owned.

Wal-Mart Stores, Inc. is engaged in the operation of retail, wholesale and other units in various formats around the world. The company has a market cap of $200.34 billion. The Firm offers an assortment of merchandise and services at everyday low prices . It has 13.42 P/E ratio. The Company’s activities are conducted in three divisions: Walmart U.S., Walmart International and Sam’s Club.