Allen Investment Management LLC Cuts Position in Lowe's Companies, Inc. $LOW

Key Points

• Allen Investment Management cut its Lowe’s stake by 15.1% in the fourth quarter, selling 6,443 shares and leaving it with 36,098 shares valued at about $8.7 million.
• Lowe’s reported better-than-expected quarterly results, with EPS of $3.03 versus estimates of $2.97 and revenue of $23.08 billion, up 10.3% year over year. The company also raised its annual dividend to $1.25 per quarter, or $5.00 annually.
• The stock was down 3.1% and trading near its 12-month low, while analysts remain mixed after several price-target cuts. Overall, Wall Street still rates Lowe’s as a Moderate Buy with a consensus target price of $264.57.

Allen Investment Management LLC trimmed its holdings in shares of Lowe's Companies, Inc. (NYSE:LOW - Free Report) by 15.1% in the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 36,098 shares of the home improvement retailer's stock after selling 6,443 shares during the quarter. Allen Investment Management LLC's holdings in Lowe's Companies were worth $8,705,000 at the end of the most recent quarter.

Other hedge funds have also bought and sold shares of the company. Vanguard Group Inc. boosted its holdings in shares of Lowe's Companies by 1.7% in the 4th quarter. Vanguard Group Inc. now owns 56,230,787 shares of the home improvement retailer's stock worth $13,560,617,000 after buying an additional 924,625 shares during the last quarter. State Street Corp increased its holdings in Lowe's Companies by 0.5% during the third quarter. State Street Corp now owns 25,036,276 shares of the home improvement retailer's stock worth $6,291,867,000 after buying an additional 124,501 shares during the last quarter. Geode Capital Management LLC raised its position in Lowe's Companies by 7.1% in the fourth quarter. Geode Capital Management LLC now owns 13,326,581 shares of the home improvement retailer's stock worth $3,201,329,000 after acquiring an additional 887,579 shares during the period. Norges Bank bought a new stake in Lowe's Companies in the fourth quarter worth about $1,993,697,000. Finally, Northern Trust Corp boosted its stake in Lowe's Companies by 1.5% in the third quarter. Northern Trust Corp now owns 6,830,080 shares of the home improvement retailer's stock valued at $1,716,467,000 after acquiring an additional 103,827 shares during the last quarter. 74.06% of the stock is currently owned by institutional investors.

Lowe's Companies Stock Down 3.1%

Shares of Lowe's Companies stock opened at $207.62 on Tuesday. The company's fifty day simple moving average is $232.06 and its two-hundred day simple moving average is $247.26. Lowe's Companies, Inc. has a 12-month low of $207.55 and a 12-month high of $293.06. The firm has a market cap of $116.41 billion, a PE ratio of 17.55, a price-to-earnings-growth ratio of 2.70 and a beta of 0.87.

Lowe's Companies (NYSE:LOW - Get Free Report) last posted its earnings results on Wednesday, May 20th. The home improvement retailer reported $3.03 earnings per share for the quarter, topping analysts' consensus estimates of $2.97 by $0.06. The company had revenue of $23.08 billion during the quarter, compared to analyst estimates of $22.98 billion. Lowe's Companies had a net margin of 7.51% and a negative return on equity of 67.96%. Lowe's Companies's revenue for the quarter was up 10.3% on a year-over-year basis. During the same period in the prior year, the business posted $2.92 earnings per share. Lowe's Companies has set its FY 2026 guidance at 12.250-12.750 EPS. As a group, sell-side analysts expect that Lowe's Companies, Inc. will post 12.5 earnings per share for the current fiscal year.

Lowe's Companies Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, August 5th. Investors of record on Wednesday, July 22nd will be paid a $1.25 dividend. This represents a $5.00 annualized dividend and a dividend yield of 2.4%. The ex-dividend date is Wednesday, July 22nd. This is an increase from Lowe's Companies's previous quarterly dividend of $1.20. Lowe's Companies's dividend payout ratio (DPR) is currently 40.57%.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on the stock. TD Cowen dropped their price objective on shares of Lowe's Companies from $280.00 to $235.00 and set a "hold" rating on the stock in a report on Thursday, May 21st. KGI Securities initiated coverage on Lowe's Companies in a research note on Tuesday, March 10th. They issued a "neutral" rating and a $255.00 target price for the company. Telsey Advisory Group reduced their target price on Lowe's Companies from $295.00 to $280.00 and set an "outperform" rating for the company in a report on Thursday, May 21st. BNP Paribas Exane lowered their price target on shares of Lowe's Companies from $228.00 to $202.00 and set an "underperform" rating on the stock in a report on Thursday, May 21st. Finally, Robert W. Baird decreased their price target on shares of Lowe's Companies from $320.00 to $270.00 and set an "outperform" rating on the stock in a report on Thursday, May 21st. Twenty-three research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $264.57.

About Lowe's Companies

Lowe's Companies, Inc is a leading home improvement retailer that operates large-format stores and digital channels serving both do-it-yourself homeowners and professional contractors. The company offers a broad assortment of products including building materials, lumber, appliances, tools and hardware, plumbing and electrical supplies, paint, flooring, kitchen and bath fixtures, outdoor and garden products, and home decor. Lowe's also provides a range of services such as installation, home improvement financing, tool and equipment rental, and contractor-focused sales programs.

Operations are centered on a nationwide brick-and-mortar store network supported by distribution centers and an e-commerce platform that enables online ordering, delivery and in-store pickup.

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