Lowe’s Companies (NYSE:LOW) Shares Up 0.6% After Earnings Beat

Lowe’s Companies, Inc. (NYSE:LOW)’s stock price was up 0.6% during trading on Wednesday following a stronger than expected earnings report. The stock traded as high as $242.70 and last traded at $241.74. Approximately 361,987 shares changed hands during trading, a decline of 86% from the average daily volume of 2,525,774 shares. The stock had previously closed at $240.33.

The home improvement retailer reported $4.10 EPS for the quarter, topping analysts’ consensus estimates of $3.96 by $0.14. Lowe’s Companies had a net margin of 8.46% and a negative return on equity of 48.52%. The firm had revenue of $23.59 billion during the quarter, compared to the consensus estimate of $23.93 billion. During the same quarter in the previous year, the firm posted $4.56 earnings per share. The company’s revenue was down 5.5% compared to the same quarter last year.

Lowe’s Companies Cuts Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, August 7th. Shareholders of record on Wednesday, July 24th were paid a $0.15 dividend. The ex-dividend date was Wednesday, July 24th. This represents a $0.60 annualized dividend and a yield of 0.25%. Lowe’s Companies’s dividend payout ratio is currently 36.95%.

Wall Street Analyst Weigh In

Several brokerages recently commented on LOW. Royal Bank of Canada cut their price target on shares of Lowe’s Companies from $245.00 to $238.00 and set a “sector perform” rating on the stock in a research note on Wednesday. Gordon Haskett reduced their target price on Lowe’s Companies from $245.00 to $240.00 and set a “hold” rating for the company in a report on Wednesday. DA Davidson decreased their target price on Lowe’s Companies from $270.00 to $240.00 and set a “neutral” rating for the company in a research report on Wednesday, May 22nd. Wedbush reaffirmed a “neutral” rating and set a $250.00 price target on shares of Lowe’s Companies in a research report on Wednesday. Finally, UBS Group increased their price objective on Lowe’s Companies from $270.00 to $290.00 and gave the company a “buy” rating in a report on Wednesday. Fourteen analysts have rated the stock with a hold rating and thirteen have given a buy rating to the stock. Based on data from MarketBeat.com, Lowe’s Companies currently has a consensus rating of “Hold” and an average target price of $252.96.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. International Assets Investment Management LLC acquired a new position in Lowe’s Companies during the fourth quarter worth $24,091,000. GUNN & Co INVESTMENT MANAGEMENT INC. raised its stake in shares of Lowe’s Companies by 1,511.4% during the 4th quarter. GUNN & Co INVESTMENT MANAGEMENT INC. now owns 24,349 shares of the home improvement retailer’s stock worth $5,419,000 after buying an additional 22,838 shares during the last quarter. Wedge Capital Management L L P NC grew its stake in Lowe’s Companies by 3.1% in the 4th quarter. Wedge Capital Management L L P NC now owns 38,714 shares of the home improvement retailer’s stock valued at $8,616,000 after acquiring an additional 1,155 shares during the last quarter. Linden Thomas Advisory Services LLC grew its stake in Lowe’s Companies by 10.2% in the 4th quarter. Linden Thomas Advisory Services LLC now owns 7,758 shares of the home improvement retailer’s stock valued at $1,727,000 after acquiring an additional 721 shares during the last quarter. Finally, GAMMA Investing LLC purchased a new position in Lowe’s Companies during the 4th quarter valued at about $619,000. 74.06% of the stock is currently owned by institutional investors and hedge funds.

Lowe’s Companies Price Performance

The firm’s 50-day moving average price is $231.18 and its 200 day moving average price is $232.26. The firm has a market capitalization of $138.16 billion, a price-to-earnings ratio of 19.47, a price-to-earnings-growth ratio of 1.85 and a beta of 1.07.

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.