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

Lowe’s Companies, Inc. (NYSE:LOW)’s stock price gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $219.57, but opened at $230.01. Lowe’s Companies shares last traded at $230.5980, with a volume of 2,564,980 shares traded.

The home improvement retailer reported $3.06 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.97 by $0.09. The business had revenue of $20.81 billion for the quarter, compared to analysts’ expectations of $20.88 billion. Lowe’s Companies had a negative return on equity of 52.02% and a net margin of 8.20%.The firm’s quarterly revenue was up 3.2% compared to the same quarter last year. During the same quarter last year, the business earned $2.89 earnings per share. Lowe’s Companies has set its FY 2025 guidance at 12.250-12.250 EPS.

Lowe’s Companies Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, February 4th. Stockholders of record on Wednesday, January 21st will be given a dividend of $1.20 per share. The ex-dividend date is Wednesday, January 21st. This represents a $4.80 annualized dividend and a dividend yield of 2.1%. Lowe’s Companies’s payout ratio is currently 39.44%.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on LOW. Piper Sandler increased their price objective on shares of Lowe’s Companies from $269.00 to $294.00 and gave the company an “overweight” rating in a report on Thursday, August 21st. Sanford C. Bernstein upped their target price on shares of Lowe’s Companies from $279.00 to $282.00 and gave the company an “outperform” rating in a research report on Friday, November 7th. JPMorgan Chase & Co. reduced their price target on Lowe’s Companies from $283.00 to $275.00 and set an “overweight” rating on the stock in a research report on Monday, November 10th. Telsey Advisory Group reaffirmed an “outperform” rating and set a $305.00 price objective on shares of Lowe’s Companies in a research note on Thursday, November 13th. Finally, Robert W. Baird upped their price objective on Lowe’s Companies from $285.00 to $295.00 and gave the company an “outperform” rating in a report on Thursday, August 21st. Sixteen research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Lowe’s Companies currently has an average rating of “Moderate Buy” and an average target price of $278.91.

Insider Activity at Lowe’s Companies

In related news, EVP Brandon J. Sink sold 8,192 shares of the firm’s stock in a transaction on Friday, September 5th. The stock was sold at an average price of $268.58, for a total transaction of $2,200,207.36. Following the sale, the executive vice president owned 21,603 shares of the company’s stock, valued at approximately $5,802,133.74. This trade represents a 27.49% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, EVP Joseph Michael Mcfarland sold 43,810 shares of the business’s stock in a transaction dated Thursday, September 11th. The shares were sold at an average price of $272.60, for a total value of $11,942,606.00. Following the completion of the transaction, the executive vice president directly owned 66,566 shares of the company’s stock, valued at approximately $18,145,891.60. The trade was a 39.69% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 52,931 shares of company stock worth $14,381,752 in the last quarter. Corporate insiders own 0.27% of the company’s stock.

Institutional Trading of Lowe’s Companies

A number of large investors have recently bought and sold shares of the business. Vanguard Group Inc. increased its position in shares of Lowe’s Companies by 0.6% during the third quarter. Vanguard Group Inc. now owns 55,306,162 shares of the home improvement retailer’s stock worth $13,898,992,000 after acquiring an additional 329,807 shares in the last quarter. State Street Corp lifted its position in Lowe’s Companies by 0.5% in the 3rd quarter. State Street Corp now owns 25,036,276 shares of the home improvement retailer’s stock valued at $6,291,867,000 after acquiring an additional 124,501 shares in the last quarter. Geode Capital Management LLC boosted its stake in Lowe’s Companies by 0.3% in the 2nd quarter. Geode Capital Management LLC now owns 12,351,783 shares of the home improvement retailer’s stock worth $2,732,049,000 after purchasing an additional 42,190 shares during the period. Norges Bank bought a new position in Lowe’s Companies during the 2nd quarter worth about $1,773,624,000. Finally, Northern Trust Corp raised its stake in shares of Lowe’s Companies by 1.5% in the 3rd quarter. Northern Trust Corp now owns 6,830,080 shares of the home improvement retailer’s stock valued at $1,716,467,000 after purchasing an additional 103,827 shares during the period. 74.06% of the stock is owned by institutional investors.

Lowe’s Companies Trading Up 5.0%

The stock has a market cap of $129.33 billion, a price-to-earnings ratio of 18.84, a P/E/G ratio of 2.21 and a beta of 0.87. The company has a 50 day simple moving average of $245.71 and a 200-day simple moving average of $237.46.

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.