DA Davidson Expects Reduced Earnings for Lowe’s Companies

Lowe’s Companies, Inc. (NYSE:LOW) – Equities researchers at DA Davidson dropped their FY2026 EPS estimates for Lowe’s Companies in a note issued to investors on Thursday, November 20th. DA Davidson analyst M. Baker now expects that the home improvement retailer will post earnings of $12.25 per share for the year, down from their prior forecast of $12.28. DA Davidson has a “Neutral” rating and a $250.00 price objective on the stock. The consensus estimate for Lowe’s Companies’ current full-year earnings is $11.90 per share.

Lowe’s Companies (NYSE:LOW) last issued its earnings results on Wednesday, November 19th. The home improvement retailer reported $3.06 EPS for the quarter, beating analysts’ consensus estimates of $2.97 by $0.09. Lowe’s Companies had a net margin of 8.20% and a negative return on equity of 52.02%. The business had revenue of $20.81 billion for the quarter, compared to the consensus estimate of $20.88 billion. During the same quarter last year, the firm posted $2.89 EPS. The business’s revenue for the quarter was up 3.2% compared to the same quarter last year. Lowe’s Companies has set its FY 2025 guidance at 12.250-12.250 EPS.

A number of other research firms have also issued reports on LOW. Citigroup lowered their target price on Lowe’s Companies from $253.00 to $242.00 and set a “neutral” rating for the company in a research note on Thursday, July 31st. Truist Financial decreased their price target on Lowe’s Companies from $267.00 to $256.00 and set a “buy” rating for the company in a report on Thursday. JPMorgan Chase & Co. lifted their price objective on shares of Lowe’s Companies from $275.00 to $300.00 and gave the company an “overweight” rating in a research note on Thursday. Mizuho decreased their target price on shares of Lowe’s Companies from $285.00 to $272.00 and set an “outperform” rating for the company in a research note on Thursday. Finally, Wells Fargo & Company dropped their price target on shares of Lowe’s Companies from $290.00 to $280.00 and set an “overweight” rating on the stock in a research note on Tuesday, November 11th. Sixteen research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $274.75.

Lowe’s Companies Price Performance

NYSE:LOW opened at $234.12 on Monday. The business’s 50-day moving average is $243.31 and its two-hundred day moving average is $237.59. The firm has a market capitalization of $131.30 billion, a PE ratio of 19.24, a price-to-earnings-growth ratio of 2.21 and a beta of 0.87. Lowe’s Companies has a 12 month low of $206.38 and a 12 month high of $280.64.

Institutional Trading of Lowe’s Companies

A number of institutional investors and hedge funds have recently modified their holdings of the business. Howard Hughes Medical Institute bought a new stake in shares of Lowe’s Companies during the 2nd quarter valued at about $27,000. Solstein Capital LLC grew its holdings in shares of Lowe’s Companies by 627.8% during the second quarter. Solstein Capital LLC now owns 131 shares of the home improvement retailer’s stock valued at $29,000 after purchasing an additional 113 shares during the last quarter. Activest Wealth Management raised its position in shares of Lowe’s Companies by 78.5% during the 3rd quarter. Activest Wealth Management now owns 116 shares of the home improvement retailer’s stock worth $29,000 after purchasing an additional 51 shares during the period. Traub Capital Management LLC bought a new stake in shares of Lowe’s Companies in the 2nd quarter worth approximately $30,000. Finally, Vermillion & White Wealth Management Group LLC boosted its position in Lowe’s Companies by 128.8% during the 2nd quarter. Vermillion & White Wealth Management Group LLC now owns 135 shares of the home improvement retailer’s stock valued at $30,000 after purchasing an additional 76 shares during the period. 74.06% of the stock is owned by institutional investors and hedge funds.

Insider Activity at Lowe’s Companies

In other news, EVP Joseph Michael Mcfarland sold 43,810 shares of the business’s stock in a transaction that occurred on Thursday, September 11th. The stock was sold at an average price of $272.60, for a total value of $11,942,606.00. Following the completion of the sale, the executive vice president directly owned 66,566 shares in the company, valued at approximately $18,145,891.60. The trade was a 39.69% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Brandon J. Sink sold 8,192 shares of the company’s stock in a transaction that occurred on Friday, September 5th. The shares were sold at an average price of $268.58, for a total value of $2,200,207.36. Following the sale, the executive vice president directly owned 21,603 shares in the company, valued at approximately $5,802,133.74. This represents a 27.49% 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 valued at $14,381,752 over the last three months. 0.27% of the stock is owned by insiders.

Lowe’s Companies Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, February 4th. Investors of record on Wednesday, January 21st will be issued a $1.20 dividend. This represents a $4.80 annualized dividend and a yield of 2.1%. The ex-dividend date of this dividend is Wednesday, January 21st. Lowe’s Companies’s payout ratio is currently 39.80%.

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.