Wealthfront Advisers LLC Reduces Position in Lowe's Companies, Inc. $LOW

Key Points

• Wealthfront Advisers cut its Lowe’s position by 21.8% in the second quarter, selling 18,272 shares and retaining 65,698 shares valued at approximately $14.5 million. Institutional investors collectively own 74.06% of the company.
• Lowe’s reported quarterly revenue of $23.08 billion and adjusted earnings of $3.03 per share, exceeding analyst expectations, while revenue increased 10.3% year over year. The company also raised its quarterly dividend to $1.25 per share, representing a 2.3% yield.
• Analysts maintain a consensus “Moderate Buy” rating with an average price target of $262.63, but concerns include weak do-it-yourself demand, limited housing activity, margin pressure and the stock trading well below its 52-week high.

Wealthfront Advisers LLC lessened its holdings in shares of Lowe's Companies, Inc. (NYSE:LOW - Free Report) by 21.8% in the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 65,698 shares of the home improvement retailer's stock after selling 18,272 shares during the quarter. Wealthfront Advisers LLC's holdings in Lowe's Companies were worth $14,486,000 at the end of the most recent reporting period.

Several other large investors have also recently modified their holdings of LOW. Norges Bank bought a new position in Lowe's Companies in the 4th quarter worth approximately $1,993,697,000. Price T Rowe Associates Inc. MD raised its holdings in Lowe's Companies by 45.2% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 6,555,565 shares of the home improvement retailer's stock valued at $1,580,941,000 after acquiring an additional 2,039,343 shares during the period. J. Stern & Co. LLP raised its holdings in Lowe's Companies by 7,814.9% during the 4th quarter. J. Stern & Co. LLP now owns 1,490,369 shares of the home improvement retailer's stock valued at $359,417,000 after acquiring an additional 1,471,539 shares during the period. Eurizon Capital SGR S.p.A. purchased a new stake in shares of Lowe's Companies during the fourth quarter worth $308,683,000. Finally, Vanguard Group Inc. lifted its position in shares of Lowe's Companies by 1.7% during the fourth quarter. Vanguard Group Inc. now owns 56,230,787 shares of the home improvement retailer's stock worth $13,560,617,000 after acquiring an additional 924,625 shares in the last quarter. Hedge funds and other institutional investors own 74.06% of the company's stock.

Trending Headlines about Lowe's Companies

Here are the key news stories impacting Lowe's Companies this week:

• Positive Sentiment: Investors are looking for Lowe’s Pro customer growth, online sales momentum and expansion in home services to support results. The company’s Total Home strategy is also viewed as a longer-term value-creation opportunity. Is Lowe's a Buy Ahead of Earnings
• Positive Sentiment: Wall Street expects revenue growth to accelerate materially from the prior-year period, while largely steady analyst estimates suggest relatively firm confidence in Lowe’s near-term operating outlook. Analysts maintain a consensus “Moderate Buy” rating. Expected Revenue Acceleration and Steady Forecasts
• Neutral Sentiment: The earnings release is expected to produce a sizable share-price move, with investors focused on comparable-store sales, gross margins, earnings guidance and management’s view of housing-related demand. Expected Earnings Moves for Home Depot and Lowe's
• Neutral Sentiment: Lowe’s reports alongside other major retailers, including Target and recently Home Depot, giving investors a broader read on U.S. consumer spending and the home-improvement market. Target or Lowe's Ahead of Earnings
• Negative Sentiment: Weak do-it-yourself demand, cautious consumers and limited housing activity could offset strength in Pro sales, digital channels and services. Higher costs may also pressure margins, making the earnings beat-and-guidance combination especially important. Lowe's Earnings Preview
• Negative Sentiment: The shares remain well below their 52-week high and below their longer-term moving average, reflecting investor concern that Lowe’s may remain dependent on a delayed housing recovery. Comparisons with Home Depot, which is viewed as having steadier estimates, add competitive pressure. Lowe's Q2 Earnings Preview

Lowe's Companies Stock Up 0.1%

NYSE:LOW opened at $215.94 on Wednesday. The firm's fifty day simple moving average is $216.12 and its 200 day simple moving average is $233.78. The stock has a market cap of $121.08 billion, a P/E ratio of 18.25, a price-to-earnings-growth ratio of 2.79 and a beta of 0.86. Lowe's Companies, Inc. has a twelve month low of $199.40 and a twelve month high of $293.06.

Lowe's Companies (NYSE:LOW - Get Free Report) last issued its quarterly earnings data on Wednesday, May 20th. The home improvement retailer reported $3.03 EPS for the quarter, topping the consensus estimate of $2.97 by $0.06. Lowe's Companies had a net margin of 7.51% and a negative return on equity of 67.96%. The business had revenue of $23.08 billion during the quarter, compared to analyst estimates of $22.98 billion. During the same period in the prior year, the business earned $2.92 EPS. The company's revenue for the quarter was up 10.3% on a year-over-year basis. On average, analysts expect that Lowe's Companies, Inc. will post 12.43 EPS for the current fiscal year.

Lowe's Companies Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, August 5th. Investors of record on Wednesday, July 22nd were given a dividend of $1.25 per share. This is an increase from Lowe's Companies's previous quarterly dividend of $1.20. This represents a $5.00 annualized dividend and a dividend yield of 2.3%. The ex-dividend date was Wednesday, July 22nd. Lowe's Companies's dividend payout ratio is presently 42.27%.

Analysts Set New Price Targets

LOW has been the subject of a number of analyst reports. Jefferies Financial Group cut their price target on Lowe's Companies from $305.00 to $278.00 and set a "buy" rating for the company in a report on Thursday, May 21st. Bank of America dropped their price objective on Lowe's Companies from $260.00 to $257.00 and set a "neutral" rating on the stock in a report on Thursday, May 21st. Benchmark assumed coverage on Lowe's Companies in a research report on Tuesday, May 12th. They set a "hold" rating on the stock. Oppenheimer cut their price objective on shares of Lowe's Companies from $315.00 to $275.00 and set an "outperform" rating for the company in a research report on Monday, May 18th. Finally, BTIG Research lowered Lowe's Companies to a "reduce" rating in a research note on Tuesday, May 12th. Twenty-three research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $262.63.

Insider Activity at Lowe's Companies

In related news, EVP Janice Dupre sold 14,150 shares of the stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $221.90, for a total value of $3,139,885.00. Following the completion of the transaction, the executive vice president directly owned 39,785 shares of the company's stock, valued at $8,828,291.50. This represents a 26.24% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, EVP Juliette Williams Pryor sold 9,330 shares of the stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of $224.81, for a total transaction of $2,097,477.30. Following the completion of the transaction, the executive vice president directly owned 16,142 shares of the company's stock, valued at approximately $3,628,883.02. The trade was a 36.63% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 25,980 shares of company stock worth $5,796,937 over the last 90 days. 0.29% of the stock is owned by company insiders.

Lowe's Companies Company Profile

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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