Lowe's Companies (NYSE:LOW) Reaches New 12-Month Low - Should You Sell?

Key Points

• Lowe’s shares fell to a new 52-week low of $199.39, below their 50-day and 200-day moving averages of $214.91 and $229.90, respectively.
• Analysts remain generally positive, with a “Moderate Buy” consensus and an average price target of $258.53, despite some target cuts and two Sell ratings among 36 analysts.
• The company exceeded quarterly EPS expectations, reporting $4.40 versus $4.22, while revenue rose 8.3% year over year to $25.96 billion. Lowe’s also declared a $1.25 quarterly dividend, equivalent to a 2.5% annual yield.

Shares of Lowe's Companies, Inc. (NYSE:LOW - Get Free Report) reached a new 52-week low during mid-day trading on Tuesday . The company traded as low as $199.39 and last traded at $199.69, with a volume of 2293264 shares trading hands. The stock had previously closed at $204.70.

Analysts Set New Price Targets

LOW has been the topic of a number of analyst reports. Wells Fargo & Company cut their price objective on shares of Lowe's Companies from $255.00 to $245.00 and set an "overweight" rating on the stock in a report on Tuesday, August 11th. DA Davidson reiterated a "neutral" rating and issued a $245.00 target price on shares of Lowe's Companies in a report on Wednesday, August 19th. KeyCorp reissued an "overweight" rating and set a $275.00 price target on shares of Lowe's Companies in a research report on Thursday, August 20th. Morgan Stanley restated an "overweight" rating on shares of Lowe's Companies in a report on Thursday, August 20th. Finally, Weiss Ratings downgraded shares of Lowe's Companies from a "hold (c)" rating to a "hold (c-)" rating in a research report on Monday, August 17th. Twenty-three research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, Lowe's Companies presently has an average rating of "Moderate Buy" and an average target price of $258.53.

Lowe's Companies Stock Performance

The company has a market cap of $112.25 billion, a PE ratio of 16.91, a price-to-earnings-growth ratio of 2.77 and a beta of 0.86. The company's 50 day moving average price is $214.91 and its 200-day moving average price is $229.90.

Lowe's Companies (NYSE:LOW - Get Free Report) last released its quarterly earnings data on Wednesday, August 19th. The home improvement retailer reported $4.40 EPS for the quarter, beating the consensus estimate of $4.22 by $0.18. Lowe's Companies had a net margin of 7.34% and a negative return on equity of 75.67%. The business had revenue of $25.96 billion for the quarter, compared to the consensus estimate of $26.13 billion. During the same period in the prior year, the firm earned $4.33 earnings per share. The company's revenue was up 8.3% compared to the same quarter last year. Lowe's Companies has set its FY 2026 guidance at 12.250-12.250 EPS. Equities research analysts expect that Lowe's Companies, Inc. will post 12.26 EPS for the current year.

Lowe's Companies Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, November 4th. Stockholders of record on Wednesday, October 21st will be issued a $1.25 dividend. This represents a $5.00 dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date of this dividend is Wednesday, October 21st. Lowe's Companies's dividend payout ratio is presently 42.27%.

Insider Activity at Lowe's Companies

In other Lowe's Companies news, EVP Janice Dupre sold 14,150 shares of the firm's stock in a transaction on 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 trade represents a 26.24% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Margrethe R. Vagell sold 2,500 shares of the business's stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $223.83, for a total transaction of $559,575.00. Following the transaction, the executive vice president owned 20,220 shares of the company's stock, valued at $4,525,842.60. This trade represents a 11.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 25,980 shares of company stock valued at $5,796,937. Corporate insiders own 0.29% of the company's stock.

Institutional Investors Weigh In On Lowe's Companies

Institutional investors and hedge funds have recently made changes to their positions in the business. California State Teachers Retirement System raised its holdings in shares of Lowe's Companies by 21,712.9% in the 2nd quarter. California State Teachers Retirement System now owns 182,933,056 shares of the home improvement retailer's stock valued at $40,334,910,000 after acquiring an additional 182,094,408 shares in the last quarter. BlackRock Inc. increased its position in shares of Lowe's Companies by 1.8% in the second quarter. BlackRock Inc. now owns 40,545,728 shares of the home improvement retailer's stock worth $8,939,928,000 after purchasing an additional 714,092 shares during the last quarter. State Street Corp lifted its position 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 valued at $6,291,867,000 after purchasing an additional 124,501 shares during the last quarter. Geode Capital Management LLC grew its stake in Lowe's Companies by 7.1% in the 4th quarter. Geode Capital Management LLC now owns 13,326,581 shares of the home improvement retailer's stock worth $3,201,329,000 after buying an additional 887,579 shares in the last quarter. Finally, Norges Bank purchased a new position in Lowe's Companies in the 4th quarter worth approximately $1,993,697,000. Hedge funds and other institutional investors own 74.06% of the company's stock.

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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