Leeward Financial Partners LLC has reduced its stake in Lowe’s Companies, Inc. (NYSE:LOW) by 5.7% during the second quarter of the year. According to the firm’s recent Form 13F filing with the Securities and Exchange Commission (SEC), it now holds 1,295 shares after selling 78 shares in the quarter. This reduction valued their holdings at approximately $287,000 at the quarter’s end.
Several other institutional investors have also adjusted their positions in Lowe’s. Notably, Nuveen LLC acquired a new stake valued at around $681.2 million in the first quarter. Pacer Advisors Inc. significantly increased its holdings by an impressive 2,984.6%, now owning 2,038,069 shares worth $475.3 million after purchasing an additional 1,971,996 shares. Similarly, Wellington Management Group LLP raised its investment by 49.0%, resulting in ownership of 1,881,196 shares valued at $438.8 million.
Invesco Ltd. and Goldman Sachs Group Inc. have also boosted their positions in Lowe’s, with Invesco increasing its stake by 10.6% to 5,207,081 shares worth $1.2 billion, and Goldman Sachs raising its holdings by 6.9% to 5,111,747 shares valued at $1.2 billion. Currently, institutional investors and hedge funds own 74.06% of Lowe’s stock.
Analysts Remain Bullish on Lowe’s Companies
Lowe’s Companies has attracted significant attention from analysts, with many issuing positive ratings. Weiss Ratings recently reaffirmed a “buy (B-)” rating for the stock, while JPMorgan Chase & Co. raised its price target from $280.00 to $283.00, maintaining an “overweight” rating. UBS Group has set a more ambitious target, increasing its price objective from $300.00 to $325.00 and rating the company as a “buy.”
Gordon Haskett has upgraded Lowe’s rating to “hold,” while Truist Financial has also increased its price target from $264.00 to $283.00. Overall, sixteen analysts have assigned a “buy” rating, eight have issued a “hold,” and one has rated the stock as a “sell.” According to MarketBeat, Lowe’s has an average rating of “Moderate Buy” with a target price of approximately $282.59.
Stock Performance and Financial Outlook
On the trading day following these developments, Lowe’s stock opened at $238.29, reflecting a 0.6% decline. The company boasts a market capitalization of $133.64 billion, a price-to-earnings (PE) ratio of 19.58, and a price-to-earnings-growth (PEG) ratio of 2.21. The stock has fluctuated between a twelve-month low of $206.38 and a high of $280.64.
Lowe’s recently reported its earnings results, announcing earnings per share (EPS) of $4.33 for the quarter, surpassing the consensus estimate of $4.24 by $0.09. Revenue for the quarter reached $23.96 billion, slightly below expectations of $23.99 billion. The company demonstrated a net margin of 8.20% and a negative return on equity of 52.02%.
Looking ahead, Lowe’s has set its fiscal year 2025 EPS guidance between $12.20 and $12.45. Analysts forecast the company will report an EPS of $11.90 for the current year.
In addition to its financial performance, Lowe’s has announced a quarterly dividend of $1.20, payable on November 5, 2024, to stockholders of record on October 22, 2024. This dividend represents an annualized yield of 2.0% and a payout ratio of 39.44%.
Insider Trading Activity
Recent insider trading activity has also drawn attention. 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% decrease in ownership.
Additionally, CEO Marvin R. Ellison sold 40,000 shares on August 20, realizing a total of $10.56 million. After this sale, Ellison owns 249,043 shares valued at approximately $65.77 million, which represents a 13.84% reduction in his stake. Over the past ninety days, insiders have sold a total of 92,931 shares valued at nearly $24.95 million, with insider ownership standing at 0.27%.
Lowe’s Companies, Inc. operates as a prominent home improvement retailer in the United States, providing a wide range of products and services for construction, maintenance, and home improvement.
