Applied Finance Capital Management LLC Has $23.65 Million Stake in Lowe's Companies, Inc. (NYSE:LOW)

Key Points

• Applied Finance Capital Management LLC reduced its stake in Lowe's Companies by 32.7% during the 1st quarter, now holding 101,393 shares valued at approximately $23.65 million.
• Lowe's reported earnings of $2.92 per share for the quarter, surpassing analyst estimates, although revenue decreased by 2% from the previous year.
• The company announced an increase in its quarterly dividend from $1.15 to $1.20, representing a dividend yield of 2.12% and a positive change in its shareholder returns.

Applied Finance Capital Management LLC lowered its position in Lowe's Companies, Inc. (NYSE:LOW - Free Report) by 32.7% during the first quarter, according to its most recent Form 13F filing with the SEC. The fund owned 101,393 shares of the home improvement retailer's stock after selling 49,333 shares during the period. Lowe's Companies accounts for 1.7% of Applied Finance Capital Management LLC's portfolio, making the stock its 17th largest holding. Applied Finance Capital Management LLC's holdings in Lowe's Companies were worth $23,648,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also modified their holdings of the company. Wood Tarver Financial Group LLC acquired a new stake in shares of Lowe's Companies in the fourth quarter worth $25,000. Fairway Wealth LLC acquired a new stake in shares of Lowe's Companies in the first quarter worth $32,000. Caisse Des Depots ET Consignations acquired a new stake in shares of Lowe's Companies during the 4th quarter valued at about $33,000. Orion Capital Management LLC acquired a new position in shares of Lowe's Companies in the 4th quarter worth approximately $36,000. Finally, Inlight Wealth Management LLC bought a new position in shares of Lowe's Companies during the 1st quarter worth approximately $36,000. Institutional investors own 74.06% of the company's stock.

Lowe's Companies Stock Performance

Shares of LOW traded down $0.55 during trading hours on Wednesday, reaching $229.50. The stock had a trading volume of 665,322 shares, compared to its average volume of 2,634,913. Lowe's Companies, Inc. has a 12 month low of $206.38 and a 12 month high of $287.01. The stock has a market capitalization of $128.62 billion, a PE ratio of 19.01, a PEG ratio of 2.17 and a beta of 0.90. The company's 50-day moving average is $222.93 and its two-hundred day moving average is $232.12.

Lowe's Companies (NYSE:LOW - Get Free Report) last announced its quarterly earnings results on Wednesday, May 21st. The home improvement retailer reported $2.92 EPS for the quarter, beating analysts' consensus estimates of $2.88 by $0.04. The company had revenue of $20.93 billion during the quarter, compared to analysts' expectations of $21.09 billion. Lowe's Companies had a negative return on equity of 49.12% and a net margin of 8.22%. Lowe's Companies's revenue was down 2.0% compared to the same quarter last year. During the same period in the prior year, the company earned $3.06 EPS. Equities analysts anticipate that Lowe's Companies, Inc. will post 11.9 earnings per share for the current fiscal year.

Lowe's Companies Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, August 6th. Shareholders of record on Wednesday, July 23rd will be issued a dividend of $1.20 per share. This is an increase from Lowe's Companies's previous quarterly dividend of $1.15. This represents a $4.80 dividend on an annualized basis and a yield of 2.09%. The ex-dividend date is Wednesday, July 23rd. Lowe's Companies's dividend payout ratio (DPR) is presently 39.77%.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on LOW. Robert W. Baird lowered their target price on shares of Lowe's Companies from $295.00 to $285.00 and set an "outperform" rating on the stock in a report on Thursday, May 22nd. JPMorgan Chase & Co. decreased their price target on Lowe's Companies from $300.00 to $263.00 and set an "overweight" rating on the stock in a research report on Tuesday, May 6th. Wells Fargo & Company cut their price target on Lowe's Companies from $285.00 to $260.00 and set an "overweight" rating for the company in a report on Thursday, May 8th. Citigroup reaffirmed a "neutral" rating and issued a $253.00 target price (down from $269.00) on shares of Lowe's Companies in a research note on Wednesday, May 14th. Finally, Wall Street Zen upgraded shares of Lowe's Companies from a "hold" rating to a "buy" rating in a research report on Tuesday, April 15th. One investment analyst has rated the stock with a sell rating, nine have given a hold rating and seventeen have issued a buy rating to the stock. According to data from MarketBeat.com, Lowe's Companies presently has a consensus rating of "Moderate Buy" and a consensus target price of $271.12.

Insiders Place Their Bets

In other news, EVP Juliette Williams Pryor sold 1,130 shares of the firm's stock in a transaction dated Tuesday, June 3rd. The stock was sold at an average price of $227.50, for a total value of $257,075.00. Following the completion of the sale, the executive vice president directly owned 31,898 shares in the company, valued at $7,256,795. This trade represents a 3.42% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Insiders own 0.27% of the company's stock.

Lowe's Companies Profile

Lowe's Companies, Inc, together with its subsidiaries, operates as a home improvement retailer in the United States. The company offers a line of products for construction, maintenance, repair, remodeling, and decorating. It also provides home improvement products, such as appliances, seasonal and outdoor living, lawn and garden, lumber, kitchens and bath, tools, paint, millwork, hardware, flooring, rough plumbing, building materials, décor, and electrical.