Walmart shares fall for a fourth straight session on Monday, Advent announces $485-million investment in Walmart’s Brazilian operations

August 28, 2018 9:46 am

According to a report by Reuters, the private equity company that bought 80% of Walmart Inc’s (WMT) operations in Brazil, Advent International, plans to invest as much as 1.9 billion reais ($485.7 million) in Walmart’s existing stores in the country as part of an agreement with the US retailer.

Walmart shares closed lower for a fourth consecutive trading session in New York on Monday. The stock went down 0.43% ($0.41) to $94.54, after touching an intraday low at $94.28, or a price level not seen since August 15th ($89.67).

Shares of Walmart Inc have retreated 4.26% so far in 2018 compared with an 8.35% gain for the underlying index, S&P 500 (SPX).

In 2017, Walmart’s stock surged 42.87%, thus, it outperformed the S&P 500, which registered a 19.42% return.

Advent International is to deploy the funds in three installments, with the first two expected to total 750 million reais each. The first capital raise has already been completed, while the second one is due in 2019. The remaining about 400 million reais are expected to be invested by the year 2021.

In June, Patrice Etlin, a managing partner at Advent International in Brazil, announced that the firm intended to invest billions of reais in order to transform unprofitable hypermarkets into cash-and-carry wholesale stores.

According to CNN Money, the 28 analysts, offering 12-month forecasts regarding Walmart Inc’s stock price, have a median target of $102.00, with a high estimate of $115.00 and a low estimate of $89.00. The median estimate represents a 7.89% upside compared to the closing price of $94.54 on August 27th.

The same media also reported that 17 out of 31 surveyed investment analysts had rated Walmart Inc’s stock as “Hold”, while 9 – as “Buy”. On the other hand, 1 analyst had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the Walmart stock are presented as follows:

R1 – $94.66
R2 – $94.78
R3 (Range Resistance – Sell) – $94.91
R4 (Long Breakout) – $95.27
R5 (Breakout Target 1) – $95.70
R6 (Breakout Target 2) – $95.87

S1 – $94.42
S2 – $94.30
S3 (Range Support – Buy) – $94.17
S4 (Short Breakout) – $93.81
S5 (Breakout Target 1) – $93.38
S6 (Breakout Target 2) – $93.21

By using the traditional method of calculation, the weekly levels of importance for Walmart Inc (WMT) are presented as follows:

Central Pivot Point – $95.86
R1 – $97.38
R2 – $99.80
R3 – $101.32
R4 – $102.83

S1 – $93.44
S2 – $91.92
S3 – $89.50
S4 – $87.07

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