Lowe’s Companies (NYSE:LOW) Shares Gap Up on Strong Earnings

Lowe’s Companies, Inc. (NYSE:LOW) shares gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. 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 EPS for the quarter, beating analysts’ consensus estimates of $4.24 by $0.09. Lowe’s Companies had a net margin of 8.22% and a negative return on equity of 49.12%. The business had revenue of $23.96 billion for the quarter, compared to analysts’ expectations of $23.99 billion. During the same period last year, the business earned $4.10 earnings per share. The business’s quarterly 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 firm also recently announced a quarterly dividend, which was paid on Wednesday, August 6th. Investors 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 boost from Lowe’s Companies’s previous quarterly dividend of $1.15. Lowe’s Companies’s dividend payout ratio is 39.77%.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on the company. DA Davidson lowered their target price on Lowe’s Companies from $270.00 to $240.00 and set a “neutral” rating for the company in a research note on Thursday, May 22nd. Wells Fargo & Company lowered their target price on Lowe’s Companies from $285.00 to $260.00 and set an “overweight” rating for the company in a research note on Thursday, May 8th. Morgan Stanley lowered their target price on Lowe’s Companies from $300.00 to $255.00 and set an “overweight” rating for the company in a research note on Monday, May 5th. Gordon Haskett upgraded shares of Lowe’s Companies to a “hold” rating in a research report on Wednesday, August 13th. Finally, Citigroup decreased their price objective on shares of Lowe’s Companies from $253.00 to $242.00 and set a “neutral” rating on the stock in a research report on Thursday, July 31st. Fifteen investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $272.26.

Insider Activity

In other news, EVP Juliette Williams Pryor sold 1,130 shares of the company’s stock in a transaction that occurred on Tuesday, June 3rd. The shares were sold at an average price of $227.50, for a total value of $257,075.00. Following the transaction, the executive vice president owned 31,898 shares in the company, valued at approximately $7,256,795. This represents a 3.42% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Corporate insiders own 0.27% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Wood Tarver Financial Group LLC bought a new position in Lowe’s Companies in the fourth quarter worth approximately $25,000. Howard Hughes Medical Institute bought a new position in Lowe’s Companies in the second quarter worth approximately $27,000. Solstein Capital LLC raised its position in Lowe’s Companies by 627.8% in the second quarter. Solstein Capital LLC now owns 131 shares of the home improvement retailer’s stock worth $29,000 after acquiring an additional 113 shares during the period. Traub Capital Management LLC bought a new position in Lowe’s Companies in the second quarter worth approximately $30,000. Finally, Vermillion & White Wealth Management Group LLC raised its position in 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 acquiring an additional 76 shares during the period. Institutional investors own 74.06% of the company’s stock.

Lowe’s Companies Price Performance

The firm has a market capitalization of $144.17 billion, a P/E ratio of 21.31, a P/E/G ratio of 2.42 and a beta of 0.89. The company’s 50-day simple moving average is $228.50 and its two-hundred day simple moving average is $230.35.

About Lowe’s Companies

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.