Lowe’s Companies (NYSE:LOW) Sees Strong Trading Volume Following Better-Than-Expected Earnings

Lowe’s Companies, Inc. (NYSE:LOW) saw unusually-high trading volume on Tuesday after the company announced better than expected quarterly earnings. Approximately 1,524,510 shares traded hands during mid-day trading, a decline of 36% from the previous session’s volume of 2,398,828 shares.The stock last traded at $223.75 and had previously closed at $229.17.

The home improvement retailer reported $3.06 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.94 by $0.12. Lowe’s Companies had a negative return on equity of 51.42% and a net margin of 8.94%. The company had revenue of $21.36 billion for the quarter, compared to analyst estimates of $21.14 billion. During the same quarter last year, the company earned $3.67 EPS. Lowe’s Companies’s revenue for the quarter was down 4.4% compared to the same quarter last year.

Lowe’s Companies Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, May 8th. Shareholders of record on Wednesday, April 24th were paid a $1.10 dividend. The ex-dividend date was Tuesday, April 23rd. This represents a $4.40 annualized dividend and a dividend yield of 1.99%. Lowe’s Companies’s dividend payout ratio (DPR) is currently 33.43%.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on the company. Wedbush reaffirmed a “neutral” rating and set a $250.00 price objective on shares of Lowe’s Companies in a report on Wednesday. Gordon Haskett reaffirmed a “hold” rating and issued a $245.00 target price on shares of Lowe’s Companies in a research report on Wednesday, April 3rd. The Goldman Sachs Group boosted their price target on Lowe’s Companies from $238.00 to $262.00 and gave the stock a “buy” rating in a research note on Tuesday, February 13th. Truist Financial cut their price target on Lowe’s Companies from $271.00 to $265.00 and set a “buy” rating on the stock in a research note on Wednesday. Finally, Zelman & Associates restated a “neutral” rating and set a $265.00 price objective on shares of Lowe’s Companies in a research note on Tuesday, April 2nd. Fourteen analysts have rated the stock with a hold rating and thirteen have given a buy rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $251.33.

Hedge Funds Weigh In On Lowe’s Companies

A number of institutional investors and hedge funds have recently added to or reduced their stakes in LOW. Empirical Financial Services LLC d.b.a. Empirical Wealth Management boosted its stake in Lowe’s Companies by 8.9% during the 3rd quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 2,715 shares of the home improvement retailer’s stock valued at $564,000 after purchasing an additional 222 shares in the last quarter. SageView Advisory Group LLC boosted its stake in Lowe’s Companies by 2.4% during the 3rd quarter. SageView Advisory Group LLC now owns 3,212 shares of the home improvement retailer’s stock valued at $668,000 after purchasing an additional 74 shares in the last quarter. HHM Wealth Advisors LLC boosted its stake in Lowe’s Companies by 511.5% during the 3rd quarter. HHM Wealth Advisors LLC now owns 318 shares of the home improvement retailer’s stock valued at $66,000 after purchasing an additional 266 shares in the last quarter. Winthrop Advisory Group LLC bought a new position in Lowe’s Companies during the 3rd quarter valued at $238,000. Finally, NBC Securities Inc. bought a new position in Lowe’s Companies during the 3rd quarter valued at $3,719,000. 74.06% of the stock is owned by institutional investors.

Lowe’s Companies Stock Performance

The stock has a market capitalization of $126.52 billion, a P/E ratio of 16.80, a price-to-earnings-growth ratio of 1.69 and a beta of 1.15. The business has a 50 day simple moving average of $237.57 and a 200-day simple moving average of $224.71.

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.