In recent trading, Walmart’s shares took a notable hit, falling by 3.2%, making it the biggest laggard on the Dow Jones Industrial Average. This downturn is significant, marking its most substantial drop since an 8.1% decline on November 16, 2023. There are a couple of key issues causing concern among investors.
Late on Friday, Walmart disclosed some distressing news — Jim Walton, a member of the Walton family who founded the company, filed as a trustee of the Walton Family Holdings Trust to sell up to 12 million shares of common stock. At current market prices, this transaction could be valued around $1.07 billion.
In addition to this, Walmart is facing legal challenges. The Consumer Financial Protection Bureau (CFPB) has taken action against Walmart and Branch Messenger, a platform the company uses to pay its delivery drivers. The lawsuit claims that the two entities illegally opened deposit accounts for more than a million delivery drivers, collecting over $10 million in junk fees as these drivers attempted to transfer their earnings from Branch Messenger accounts to their personal accounts.
Over the past four days, Walmart’s stock has shed 6.4% in value, continuing a losing streak. Since hitting a record high of $95.70 on December 6, the shares have fallen by a total of 6.7%, leaving investors watching closely for any further developments.
