Royal Bank Of Canada Reaffirms Sector Perform Rating for Lowe's Companies (NYSE:LOW)

Key Points

• Royal Bank of Canada reaffirmed its “sector perform” rating on Lowe’s, maintaining a $231 price target, implying 5.63% upside from the current share price.
• Lowe’s latest quarterly results exceeded expectations on earnings, with EPS of $4.40 versus the $4.22 consensus, while revenue rose 8.3% year over year to $25.96 billion but fell slightly short of estimates.
• Analyst sentiment remains broadly positive, with 23 Buy, 11 Hold and two Sell ratings producing a “Moderate Buy” consensus and an average price target of $260.63.

Lowe's Companies (NYSE:LOW - Get Free Report)'s stock had its "sector perform" rating reaffirmed by analysts at Royal Bank Of Canada in a research note issued to investors on Thursday,Benzinga reports. They presently have a $231.00 target price on the home improvement retailer's stock. Royal Bank Of Canada's price objective indicates a potential upside of 5.63% from the company's current price.

Several other brokerages also recently commented on LOW. Raymond James Financial downgraded Lowe's Companies from a "market perform" rating to a "market perform" rating in a research note on Tuesday, May 12th. Morgan Stanley cut their price objective on Lowe's Companies from $292.00 to $277.00 and set an "overweight" rating on the stock in a research report on Thursday, May 21st. BNP Paribas Exane lowered their price target on Lowe's Companies from $228.00 to $202.00 and set an "underperform" rating on the stock in a report on Thursday, May 21st. Sanford C. Bernstein dropped their target price on Lowe's Companies from $303.00 to $281.00 and set an "outperform" rating on the stock in a research report on Thursday, May 14th. Finally, Mizuho reduced their price objective on Lowe's Companies from $280.00 to $250.00 and set an "outperform" rating for the company in a research note on Thursday. Twenty-three research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $260.63.

Lowe's Companies Price Performance

Shares of LOW stock opened at $218.69 on Thursday. Lowe's Companies has a one year low of $199.40 and a one year high of $293.06. The company has a fifty day moving average price of $216.21 and a two-hundred day moving average price of $233.46. The stock has a market cap of $122.62 billion, a P/E ratio of 18.35, a P/E/G ratio of 2.76 and a beta of 0.86.

Lowe's Companies (NYSE:LOW - Get Free Report) last posted its earnings results 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. 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 negative return on equity of 67.96% and a net margin of 7.51%.The firm's revenue for the quarter was up 8.3% on a year-over-year basis. During the same quarter in the prior year, the business earned $4.33 earnings per share. Lowe's Companies has set its FY 2026 guidance at 12.250-12.250 EPS. As a group, equities research analysts anticipate that Lowe's Companies will post 12.43 EPS for the current fiscal year.

Insider Transactions at Lowe's Companies

In related news, EVP Juliette Williams Pryor sold 9,330 shares of the business's stock in a transaction that occurred on Wednesday, June 17th. The shares were 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 owned 16,142 shares in the company, valued at $3,628,883.02. The trade was a 36.63% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Janice Dupre sold 14,150 shares of the business's stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $221.90, for a total value of $3,139,885.00. Following the sale, the executive vice president owned 39,785 shares in the company, valued at $8,828,291.50. The trade was a 26.24% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 25,980 shares of company stock valued at $5,796,937. Corporate insiders own 0.29% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of LOW. Vanguard Group Inc. raised its stake in shares of Lowe's Companies by 1.7% during the 4th quarter. Vanguard Group Inc. now owns 56,230,787 shares of the home improvement retailer's stock worth $13,560,617,000 after buying an additional 924,625 shares during the period. BlackRock Inc. increased its holdings in Lowe's Companies by 1.8% in the 2nd quarter. BlackRock Inc. now owns 40,545,728 shares of the home improvement retailer's stock worth $8,939,928,000 after acquiring an additional 714,092 shares in the last quarter. State Street Corp raised 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 worth $6,291,867,000 after acquiring an additional 124,501 shares during the period. Geode Capital Management LLC raised its position in Lowe's Companies by 7.1% during the fourth quarter. Geode Capital Management LLC now owns 13,326,581 shares of the home improvement retailer's stock worth $3,201,329,000 after acquiring an additional 887,579 shares during the period. Finally, Norges Bank purchased a new position in Lowe's Companies during the fourth quarter valued at $1,993,697,000. Institutional investors and hedge funds own 74.06% of the company's stock.

Key Stories Impacting Lowe's Companies

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

• Positive Sentiment: Adjusted earnings were $4.40 per share, exceeding the $4.22 analyst consensus and rising from $4.33 a year earlier. Net sales increased 8.3% to $25.96 billion, while comparable sales edged up 0.2%. Lowe’s second-quarter results
• Positive Sentiment: Performance was helped by a roughly $80 million refund related to Trump-era tariffs. Management said the benefit will not be passed along through lower prices, supporting near-term margins and earnings, though the refund is viewed as a one-time benefit. Lowe’s tariff refund
• Positive Sentiment: Mizuho lowered its price target from $280 to $250 but maintained an “outperform” rating, implying meaningful upside from recent trading levels. DA Davidson kept a “neutral” rating with a $245 target.

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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