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

Key Points

• Lowe’s shares hit a new 52-week low, trading as low as $194.86 and down 1.4%, below both the 50-day and 200-day moving averages.
• Analysts remain broadly positive, with a “Moderate Buy” consensus from 36 analysts and an average price target of $257.63, despite several recent target-price reductions.
• The company exceeded quarterly EPS expectations but fell short on revenue, while maintaining a quarterly dividend of $1.25 per share, equivalent to a 2.6% yield.

Lowe's Companies, Inc. (NYSE:LOW - Get Free Report)'s share price hit a new 52-week low on Tuesday . The company traded as low as $194.86 and last traded at $195.3280, with a volume of 215331 shares. The stock had previously closed at $198.17.

Analysts Set New Price Targets

LOW has been the topic of a number of research analyst reports. Evercore lowered their target price on shares of Lowe's Companies from $250.00 to $230.00 in a research note on Thursday, May 21st. Wolfe Research set a $254.00 target price on shares of Lowe's Companies in a research report on Thursday, May 21st. Robert W. Baird decreased their price target on shares of Lowe's Companies from $320.00 to $270.00 and set an "outperform" rating for the company in a report on Thursday, May 21st. Piper Sandler lowered their price target on Lowe's Companies from $276.00 to $274.00 and set an "overweight" rating on the stock in a research report on Thursday, August 13th. Finally, HSBC lowered their price target on Lowe's Companies from $260.00 to $220.00 and set a "hold" rating on the stock in a research report on Thursday, May 21st. Twenty-three research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $257.63.

Lowe's Companies Trading Down 1.4%

The stock has a market capitalization of $109.60 billion, a P/E ratio of 16.51, a P/E/G ratio of 2.62 and a beta of 0.85. The business's fifty day simple moving average is $210.55 and its two-hundred day simple moving average is $224.13.

Lowe's Companies (NYSE:LOW - Get Free Report) last posted its quarterly earnings data on Wednesday, August 19th. The home improvement retailer reported $4.40 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.22 by $0.18. The company had revenue of $25.96 billion for the quarter, compared to the consensus estimate of $26.13 billion. Lowe's Companies had a net margin of 7.34% and a negative return on equity of 75.67%. The business's revenue was up 8.3% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $4.33 EPS. Lowe's Companies has set its FY 2026 guidance at 12.250-12.250 EPS. On average, equities research analysts anticipate that Lowe's Companies, Inc. will post 12.26 earnings per share 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. Investors of record on Wednesday, October 21st will be paid a dividend of $1.25 per share. This represents a $5.00 annualized dividend and a yield of 2.6%. The ex-dividend date is Wednesday, October 21st. Lowe's Companies's payout ratio is currently 42.27%.

Insider Activity at Lowe's Companies

In other news, EVP Juliette Pryor sold 9,330 shares of Lowe's Companies stock in a transaction that occurred on 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 sale, the executive vice president owned 16,142 shares of the company's stock, valued at approximately $3,628,883.02. This trade represents a 36.63% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Margrethe R. Vagell sold 2,500 shares of the business's stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $223.83, for a total value of $559,575.00. Following the sale, the executive vice president owned 20,220 shares in the company, valued at approximately $4,525,842.60. This represents a 11.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.29% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. California State Teachers Retirement System boosted its holdings in Lowe's Companies by 21,712.9% in the second 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 during the last quarter. BlackRock Inc. raised its holdings in Lowe's Companies by 1.8% during the 2nd 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. Geode Capital Management LLC raised its holdings in Lowe's Companies by 7.1% during 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 purchasing an additional 887,579 shares during the last quarter. Norges Bank acquired a new position in shares of Lowe's Companies in the 4th quarter worth approximately $1,993,697,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in shares of Lowe's Companies by 8.9% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 5,029,665 shares of the home improvement retailer's stock worth $1,212,954,000 after purchasing an additional 411,154 shares during the period. 74.06% of the stock is owned by institutional investors.

About Lowe's Companies

Lowe's Companies, Inc is a home improvement retailer that serves homeowners, renters, and professional contractors primarily through stores and digital platforms in the United States. The company sells a broad selection of products for maintenance, repair, remodeling, and construction projects.

Its merchandise includes appliances, tools, hardware, lumber, building materials, plumbing and electrical supplies, paint, flooring, lighting, kitchen and bathroom products, outdoor living items, lawn and garden products, and seasonal goods.

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