Lowe's Companies (NYSE:LOW) Shares Gap Up After Earnings Beat

Key Points

• Lowe's Companies reported earnings of $4.33 per share, exceeding analysts' expectations of $4.25, leading to a gap up in shares from a previous close of $256.36 to an opening of $265.39.
• The company announced a quarterly dividend of $1.20 per share, marking an increase from the previous dividend of $1.15 and representing a yield of 1.9%.
• Major analysts have upgraded their ratings for Lowe's, with sixteen analysts recommending a Buy rating and an average target price of $271.68 for the stock.

Lowe's Companies, Inc. (NYSE:LOW - Get Free Report) gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $256.36, but opened at $265.39. Lowe's Companies shares last traded at $257.15, with a volume of 1,225,897 shares changing hands.

The home improvement retailer reported $4.33 earnings per share for the quarter, topping analysts' consensus estimates of $4.25 by $0.08. Lowe's Companies had a net margin of 8.22% and a negative return on equity of 49.12%. During the same period in the prior year, the firm earned $4.10 earnings per share. The business's revenue was up 1.6% on a year-over-year basis. Lowe's Companies has set its FY 2025 guidance at 12.200-12.450 EPS.

Lowe's Companies Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, August 6th. Shareholders of record on Wednesday, July 23rd were given a $1.20 dividend. This represents a $4.80 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date was Wednesday, July 23rd. This is a positive change from Lowe's Companies's previous quarterly dividend of $1.15. Lowe's Companies's dividend payout ratio is 39.77%.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on LOW shares. KeyCorp upgraded Lowe's Companies from a "sector weight" rating to an "overweight" rating and set a $266.00 target price for the company in a research report on Friday, April 25th. Stifel Nicolaus boosted their price objective on Lowe's Companies from $240.00 to $265.00 and gave the stock a "hold" rating in a report on Monday. Truist Financial set a $264.00 target price on shares of Lowe's Companies and gave the company a "buy" rating in a research report on Thursday, May 22nd. Telsey Advisory Group reaffirmed an "outperform" rating and issued a $305.00 target price on shares of Lowe's Companies in a research note on Wednesday, May 21st. Finally, Mizuho reiterated an "outperform" rating and set a $280.00 price target on shares of Lowe's Companies in a research report on Friday, June 13th. Sixteen equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $271.68.

Insider Transactions at Lowe's Companies

In other Lowe's Companies news, EVP Juliette Williams Pryor sold 1,130 shares of the 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 represents a 3.42% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 0.27% of the company's stock.

Hedge Funds Weigh In On Lowe's Companies

A number of large investors have recently added to or reduced their stakes in LOW. Wood Tarver Financial Group LLC acquired a new stake in Lowe's Companies in the 4th quarter valued at approximately $25,000. Howard Hughes Medical Institute bought a new position in shares of Lowe's Companies during the 2nd quarter worth approximately $27,000. Solstein Capital LLC raised its holdings in shares of Lowe's Companies by 627.8% in the second quarter. Solstein Capital LLC now owns 131 shares of the home improvement retailer's stock valued at $29,000 after purchasing an additional 113 shares during the last quarter. Traub Capital Management LLC acquired a new stake in shares of Lowe's Companies in the second quarter valued at approximately $30,000. Finally, Vermillion & White Wealth Management Group LLC lifted its position in shares of Lowe's Companies by 128.8% in the second quarter. Vermillion & White Wealth Management Group LLC now owns 135 shares of the home improvement retailer's stock worth $30,000 after purchasing an additional 76 shares in the last quarter. Institutional investors own 74.06% of the company's stock.

Lowe's Companies Stock Up 0.6%

The firm has a market cap of $144.48 billion, a price-to-earnings ratio of 21.37, a PEG ratio of 2.37 and a beta of 0.89. The company's fifty day moving average is $227.78 and its 200 day moving average is $230.16.

Lowe's Companies Company 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.

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