Leeward Financial Partners LLC has reduced its holdings in Lowe’s Companies, Inc. (NYSE: LOW) by 5.7% during the second quarter of 2023, as reported in its recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm now owns 1,295 shares of the home improvement retailer after selling 78 shares in the quarter, bringing the total value of its investment to approximately $287,000.
Other significant investors have also modified their positions in Lowe’s. Notably, Nuveen LLC acquired a new stake valued at around $681 million in the first quarter. Pacer Advisors Inc. increased its holdings by an impressive 2,984.6%, now owning a total of 2,038,069 shares worth $475 million after purchasing an additional 1,971,996 shares. Similarly, Wellington Management Group LLP raised its stake by 49.0%, resulting in ownership of 1,881,196 shares valued at $438.75 million.
Invesco Ltd. also boosted its position by 10.6%, now holding 5,207,081 shares worth $1.21 billion. Meanwhile, Goldman Sachs Group Inc. increased its stake by 6.9%, owning 5,111,747 shares valued at $1.19 billion. Currently, institutional investors and hedge funds own approximately 74.06% of Lowe’s stock.
Analysts Forecast Positive Growth for Lowe’s
Lowe’s Companies has been the subject of numerous analyst evaluations recently. On October 8, Weiss Ratings reaffirmed a “buy (b-)” rating for the company. In a report on August 21, JPMorgan Chase & Co. raised its price target from $280 to $283, maintaining an “overweight” rating. UBS Group also increased its price objective from $300 to $325, assigning a “buy” rating.
Gordon Haskett upgraded Lowe’s to a “hold” rating on August 13, while Truist Financial raised its target from $264 to $283. Overall, sixteen analysts have rated the stock as a buy, eight have issued a hold rating, and one has assigned a sell rating, resulting in an average rating of “Moderate Buy” with a price target of $282.59.
Shares of Lowe’s Companies opened at $238.29 on Friday, reflecting a 0.6% decrease. The company has a market capitalization of $133.64 billion, a price-to-earnings (PE) ratio of 19.58, and a beta of 0.88. Its stock has fluctuated between a twelve-month low of $206.38 and a high of $280.64.
Lowe’s Earnings and Dividend Announcement
In its most recent earnings announcement on August 20, Lowe’s reported earnings per share of $4.33, surpassing the consensus estimate of $4.24 by $0.09. The company’s revenue for the quarter totaled $23.96 billion, slightly below the expected $23.99 billion. The firm achieved a net margin of 8.20% and reported a negative return on equity of 52.02%, with a year-over-year revenue increase of 1.6% from the same quarter last year.
Lowe’s has provided guidance for the fiscal year 2025, projecting earnings per share between $12.200 and $12.450. Analysts predict the company will post earnings of $11.90 for the current year.
Additionally, Lowe’s announced a quarterly dividend of $1.20, set to be paid on November 5, 2023, to stockholders of record as of October 22, 2023. This dividend represents an annualized yield of 2.0% with a payout ratio of 39.44%.
Insider Activity
In recent insider transactions, Executive Vice President Brandon J. Sink sold 8,192 shares on September 5 at an average price of $268.58, totaling approximately $2.2 million. Following this transaction, Sink holds 21,603 shares valued at around $5.8 million, marking a 27.49% reduction in ownership.
Additionally, CEO Marvin R. Ellison sold 40,000 shares on August 20 for approximately $10.56 million. After this sale, Ellison retains 249,043 shares worth about $65.77 million, reflecting a 13.84% decrease in his ownership stake. Over the past ninety days, insiders have offloaded a total of 92,931 shares valued at approximately $24.95 million, with insiders holding 0.27% of the stock.
Lowe’s Companies, Inc. operates as a prominent home improvement retailer in the United States, providing a wide array of products for construction, maintenance, repair, remodeling, and decorating. The company’s inventory includes appliances, tools, paint, and building materials, catering to both professional contractors and DIY enthusiasts.
For further insights into Lowe’s and other financial activities, market participants can access the latest 13F filings and insider trades for Lowe’s Companies through financial news platforms.
