Lowe's Companies (NYSE:LOW) Hits New 1-Year Low - Here's What Happened

Key Points

• Lowe’s shares hit a new 52-week low, falling to as low as $201.88 as the stock continued to trade below its recent averages. The decline came despite the company reporting solid quarterly results earlier in the month.
• Several analysts cut price targets on Lowe’s, with some lowering estimates sharply and one downgrading the stock to “reduce.” Still, the consensus rating remains Moderate Buy with an average price target of $264.57.
• The company raised its quarterly dividend to $1.25 per share from $1.20, while insiders recently sold shares and institutional investors remain major holders. Lowe’s most recent earnings beat expectations and revenue rose 10.3% year over year.

Shares of Lowe's Companies, Inc. (NYSE:LOW - Get Free Report) hit a new 52-week low on Tuesday . The company traded as low as $201.88 and last traded at $202.9140, with a volume of 185874 shares changing hands. The stock had previously closed at $204.71.

Analysts Set New Price Targets

Several equities research analysts recently commented on the stock. Royal Bank Of Canada decreased their price objective on shares of Lowe's Companies from $264.00 to $232.00 and set a "sector perform" rating on the stock in a research report on Thursday, May 21st. Truist Financial dropped their target price on shares of Lowe's Companies from $280.00 to $255.00 and set a "buy" rating for the company in a report on Thursday, May 21st. BTIG Research cut shares of Lowe's Companies to a "reduce" rating in a research report on Tuesday, May 12th. Jefferies Financial Group cut their target price on shares of Lowe's Companies from $305.00 to $278.00 and set a "buy" rating for the company in a research report on Thursday, May 21st. Finally, Stifel Nicolaus reduced their price target on shares of Lowe's Companies from $270.00 to $220.00 and set a "hold" rating on the stock in a report on Monday, May 18th. Twenty-three analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $264.57.

Lowe's Companies Stock Down 1.2%

The firm has a market cap of $113.45 billion, a price-to-earnings ratio of 17.11, a price-to-earnings-growth ratio of 2.64 and a beta of 0.86. The business has a 50 day moving average of $216.62 and a 200 day moving average of $241.29.

Lowe's Companies (NYSE:LOW - Get Free Report) last announced its earnings results on Wednesday, May 20th. The home improvement retailer reported $3.03 earnings per share for the quarter, beating 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 firm had revenue of $23.08 billion during the quarter, compared to the consensus estimate of $22.98 billion. During the same quarter in the previous year, the company posted $2.92 EPS. The firm's revenue for the quarter was up 10.3% on a year-over-year basis. Lowe's Companies has set its FY 2026 guidance at 12.250-12.750 EPS. Research analysts predict that Lowe's Companies, Inc. will post 12.48 earnings per share for the current year.

Lowe's Companies Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 5th. Investors of record on Wednesday, July 22nd will be paid a dividend of $1.25 per share. The ex-dividend date of this dividend is Wednesday, July 22nd. This is a positive change from Lowe's Companies's previous quarterly dividend of $1.20. This represents a $5.00 annualized dividend and a dividend yield of 2.5%. Lowe's Companies's payout ratio is currently 40.57%.

Insider Activity at Lowe's Companies

In other Lowe's Companies news, EVP Margrethe R. Vagell sold 2,500 shares of the business's stock in a transaction 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 in the company, valued at approximately $4,525,842.60. The trade was a 11.00% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Juliette Williams Pryor sold 9,330 shares of the 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 in the company, valued at approximately $3,628,883.02. This represents a 36.63% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 25,980 shares of company stock valued at $5,796,937. Company insiders own 0.29% of the company's stock.

Institutional Investors Weigh In On Lowe's Companies

A number of hedge funds and other institutional investors have recently made changes to their positions in LOW. Swiss RE Ltd. purchased a new stake in Lowe's Companies in the 4th quarter valued at about $25,000. Wilkerson Advisory Group LLC purchased a new position in shares of Lowe's Companies during the 4th quarter worth about $27,000. OLD Second National Bank of Aurora boosted its position in shares of Lowe's Companies by 52.5% in the fourth quarter. OLD Second National Bank of Aurora now owns 122 shares of the home improvement retailer's stock worth $29,000 after acquiring an additional 42 shares during the last quarter. Sankala Group LLC acquired a new stake in shares of Lowe's Companies in the fourth quarter worth approximately $33,000. Finally, Triumph Capital Management purchased a new stake in Lowe's Companies in the third quarter valued at approximately $34,000. Hedge funds and other institutional investors own 74.06% of the company's stock.

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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