Lowe's Companies, Inc. (NYSE:LOW) Stock Now Rated "Moderate Buy" by Sell-Side Analysts

Key Points

• Analyst sentiment is moderately bullish: Lowe’s has a consensus “Moderate Buy” rating from 36 analysts, including 22 buys, 12 holds, and two sells. The average 12-month price target is $255.97.
• Recent earnings exceeded expectations: Lowe’s reported quarterly EPS of $4.40 versus the $4.22 consensus estimate, while revenue rose 8.3% year over year to $25.96 billion, slightly below forecasts.
• The stock has weakened but continues returning cash to investors: Shares opened at $179.54, near their one-year low of $178.45, while the company announced a $1.25 quarterly dividend, equivalent to a 2.8% annualized yield.

Lowe's Companies, Inc. (NYSE:LOW - Get Free Report) has received a consensus rating of "Moderate Buy" from the thirty-six ratings firms that are covering the company, MarketBeat.com reports. Two investment analysts have rated the stock with a sell recommendation, twelve have issued a hold recommendation and twenty-two have issued a buy recommendation on the company. The average 1 year target price among brokerages that have issued a report on the stock in the last year is $255.97.

A number of equities research analysts recently issued reports on the stock. Mizuho dropped their price objective on shares of Lowe's Companies from $280.00 to $250.00 and set an "outperform" rating for the company in a report on Thursday, August 20th. Morgan Stanley reiterated an "overweight" rating on shares of Lowe's Companies in a report on Thursday, August 20th. Guggenheim reissued a "buy" rating and issued a $275.00 price target on shares of Lowe's Companies in a research note on Monday, September 21st. DA Davidson restated a "neutral" rating and set a $245.00 price target on shares of Lowe's Companies in a report on Wednesday, August 19th. Finally, Weiss Ratings lowered shares of Lowe's Companies from a "hold (c)" rating to a "hold (c-)" rating in a research report on Monday, August 17th.

Hedge Funds Weigh In On Lowe's Companies

A number of hedge funds have recently modified their holdings of the business. Ridgewood Investments LLC increased its position in shares of Lowe's Companies by 19.7% during the 3rd quarter. Ridgewood Investments LLC now owns 8,794 shares of the home improvement retailer's stock worth $1,621,000 after purchasing an additional 1,449 shares during the last quarter. Horizons Wealth Management purchased a new position in Lowe's Companies during the third quarter worth about $75,000. Baker Tilly Wealth Management LLC boosted its stake in Lowe's Companies by 13.6% during the third quarter. Baker Tilly Wealth Management LLC now owns 2,459 shares of the home improvement retailer's stock worth $453,000 after buying an additional 295 shares during the period. Eastover Investment Advisors LLC increased its position in shares of Lowe's Companies by 2.1% during the third quarter. Eastover Investment Advisors LLC now owns 32,120 shares of the home improvement retailer's stock valued at $5,919,000 after acquiring an additional 665 shares during the last quarter. Finally, Ferguson Wellman Capital Management Inc. increased its position in shares of Lowe's Companies by 3.7% during the third quarter. Ferguson Wellman Capital Management Inc. now owns 6,069 shares of the home improvement retailer's stock valued at $1,118,000 after acquiring an additional 214 shares during the last quarter. 74.06% of the stock is currently owned by hedge funds and other institutional investors.

Lowe's Companies Stock Performance

NYSE:LOW opened at $179.54 on Tuesday. Lowe's Companies has a one year low of $178.45 and a one year high of $293.06. The stock has a market cap of $100.73 billion, a PE ratio of 15.18, a P/E/G ratio of 1.51 and a beta of 0.89. The stock has a 50 day moving average price of $204.41 and a 200 day moving average price of $217.47.

Lowe's Companies (NYSE:LOW - Get Free Report) last issued its earnings results on Wednesday, August 19th. The home improvement retailer reported $4.40 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.22 by $0.18. Lowe's Companies had a negative return on equity of 75.67% and a net margin of 7.34%.The company had revenue of $25.96 billion during the quarter, compared to analysts' expectations of $26.13 billion. During the same period in the prior year, the business earned $4.33 EPS. The firm's quarterly 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, analysts predict that Lowe's Companies will post 12.26 earnings per share for the current fiscal year.

Lowe's Companies Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, November 4th. Shareholders of record on Wednesday, October 21st will be given a $1.25 dividend. The ex-dividend date is Wednesday, October 21st. This represents a $5.00 dividend on an annualized basis and a yield of 2.8%. Lowe's Companies's payout ratio is currently 42.27%.

About Lowe's Companies

Lowe's Companies, Inc is a home improvement retailer serving homeowners, renters, and professional contractors primarily in the United States. The company operates through a network of retail stores and digital channels, offering products and services for home repair, maintenance, remodeling, construction, and outdoor living.

Its merchandise includes appliances, tools, hardware, lumber, building materials, plumbing and electrical supplies, paint, flooring, kitchen and bath products, lighting, home décor, lawn and garden equipment, and seasonal goods.

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