Lowe's Companies, Inc. (NYSE:LOW) Receives Consensus Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts maintain a “Moderate Buy” consensus on Lowe’s, with 23 buy, 11 hold, and 2 sell ratings among 36 firms. The average 12-month price target is approximately $257.63, although several analysts recently lowered their targets.
• Lowe’s reported quarterly EPS of $4.40, exceeding estimates of $4.22, while revenue rose 8.3% year over year to $25.96 billion but fell slightly short of expectations.
• The company declared a quarterly dividend of $1.25 per share, equivalent to $5.00 annually and a 2.5% yield. Shares recently opened at $196.47, near the company’s 52-week low.

Shares of Lowe's Companies, Inc. (NYSE:LOW - Get Free Report) have been assigned an average rating of "Moderate Buy" from the thirty-six research firms that are currently covering the company, MarketBeat reports. Two equities research analysts have rated the stock with a sell recommendation, eleven have issued a hold recommendation and twenty-three have assigned a buy recommendation to the company. The average twelve-month price objective among brokerages that have updated their coverage on the stock in the last year is $257.6333.

LOW has been the subject of a number of recent analyst reports. Telsey Advisory Group reduced their price objective on shares of Lowe's Companies from $280.00 to $260.00 and set an "outperform" rating for the company in a research report on Thursday, August 20th. Bank of America reduced their price target on Lowe's Companies from $260.00 to $257.00 and set a "neutral" rating for the company in a report on Thursday, May 21st. Gordon Haskett dropped their price objective on Lowe's Companies from $280.00 to $250.00 and set a "buy" rating on the stock in a report on Thursday, May 21st. HSBC reduced their target price on Lowe's Companies from $260.00 to $220.00 and set a "hold" rating for the company in a report on Thursday, May 21st. Finally, Evercore lowered their price target on shares of Lowe's Companies from $250.00 to $230.00 in a research note on Thursday, May 21st.

Lowe's Companies Stock Performance

Shares of Lowe's Companies stock opened at $196.47 on Friday. The company has a market cap of $110.23 billion, a P/E ratio of 16.61, a PEG ratio of 2.64 and a beta of 0.85. Lowe's Companies has a one year low of $195.06 and a one year high of $293.06. The firm has a fifty day moving average of $211.67 and a two-hundred day moving average of $225.24.

Lowe's Companies (NYSE:LOW - Get Free Report) last released its earnings results on Wednesday, August 19th. The home improvement retailer reported $4.40 EPS for the quarter, topping the consensus estimate of $4.22 by $0.18. Lowe's Companies had a net margin of 7.34% and a negative return on equity of 75.67%. The company had revenue of $25.96 billion during the quarter, compared to analysts' expectations of $26.13 billion. During the same quarter last year, the business earned $4.33 EPS. The business's revenue was up 8.3% on a year-over-year basis. Lowe's Companies has set its FY 2026 guidance at 12.250-12.250 EPS. As a group, equities analysts predict that Lowe's Companies will post 12.26 earnings per share for the current year.

Lowe's Companies Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 4th. Investors of record on Wednesday, October 21st will be issued a dividend of $1.25 per share. The ex-dividend date of this dividend is Wednesday, October 21st. This represents a $5.00 dividend on an annualized basis and a yield of 2.5%. Lowe's Companies's payout ratio is currently 42.27%.

Insiders Place Their Bets

In related news, EVP Margrethe R. Vagell sold 2,500 shares of the firm's stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $223.83, for a total value of $559,575.00. Following the completion of the transaction, the executive vice president directly owned 20,220 shares of the company's stock, valued at $4,525,842.60. This trade represents a 11.00% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Juliette Pryor sold 9,330 shares of Lowe's Companies stock in a transaction on Wednesday, June 17th. The stock was sold at an average price of $224.81, for a total value of $2,097,477.30. Following the transaction, the executive vice president directly owned 16,142 shares of the company's stock, valued at approximately $3,628,883.02. This represents a 36.63% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 25,980 shares of company stock worth $5,796,937. 0.29% of the stock is owned by company insiders.

Institutional Trading of Lowe's Companies

Large investors have recently bought and sold shares of the company. Natixis Advisors LLC lifted its position in Lowe's Companies by 3.5% in the 4th quarter. Natixis Advisors LLC now owns 630,956 shares of the home improvement retailer's stock valued at $152,161,000 after purchasing an additional 21,119 shares during the last quarter. Bridges Investment Management Inc. grew its position in Lowe's Companies by 6.1% in the 4th quarter. Bridges Investment Management Inc. now owns 446,441 shares of the home improvement retailer's stock worth $107,664,000 after purchasing an additional 25,609 shares during the last quarter. Kathmere Capital Management LLC grew its position in Lowe's Companies by 133.9% in the 1st quarter. Kathmere Capital Management LLC now owns 9,402 shares of the home improvement retailer's stock worth $2,222,000 after purchasing an additional 5,383 shares during the last quarter. Glenview Trust Co increased its stake in shares of Lowe's Companies by 9.0% in the fourth quarter. Glenview Trust Co now owns 207,797 shares of the home improvement retailer's stock valued at $50,112,000 after purchasing an additional 17,225 shares during the period. Finally, LPL Financial LLC raised its holdings in shares of Lowe's Companies by 2.3% during the fourth quarter. LPL Financial LLC now owns 993,332 shares of the home improvement retailer's stock valued at $239,552,000 after buying an additional 22,175 shares during the last quarter. Institutional investors and hedge funds own 74.06% of the company's stock.

Lowe's Companies Company Profile

Lowe's Companies, Inc is a home improvement retailer that serves homeowners, renters, and professional contractors primarily through stores and digital platforms in the United States. The company sells a broad selection of products for maintenance, repair, remodeling, and construction projects.

Its merchandise includes appliances, tools, hardware, lumber, building materials, plumbing and electrical supplies, paint, flooring, lighting, kitchen and bathroom products, outdoor living items, lawn and garden products, and seasonal goods.

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