Lowe's Companies (NYSE:LOW) Shares Gap Down - What's Next?

Lowe's Companies, Inc. (NYSE:LOW - Get Free Report)'s stock price gapped down prior to trading on Tuesday . The stock had previously closed at $271.77, but opened at $263.09. Lowe's Companies shares last traded at $260.02, with a volume of 752,203 shares trading hands.

Analysts Set New Price Targets

A number of analysts have weighed in on the company. Wells Fargo & Company increased their price target on Lowe's Companies from $280.00 to $295.00 and gave the stock an "overweight" rating in a report on Wednesday, November 6th. TD Cowen raised their target price on Lowe's Companies from $270.00 to $290.00 and gave the stock a "hold" rating in a research note on Monday, October 28th. Gordon Haskett dropped their price target on Lowe's Companies from $245.00 to $240.00 and set a "hold" rating on the stock in a research note on Wednesday, August 21st. StockNews.com raised shares of Lowe's Companies from a "hold" rating to a "buy" rating in a research report on Wednesday, September 18th. Finally, Evercore ISI boosted their target price on shares of Lowe's Companies from $225.00 to $250.00 and gave the company an "in-line" rating in a research report on Wednesday, August 21st. Ten investment analysts have rated the stock with a hold rating and sixteen have assigned a buy rating to the stock. According to data from MarketBeat.com, Lowe's Companies currently has a consensus rating of "Moderate Buy" and an average target price of $273.84.

Lowe's Companies Price Performance

The firm's 50 day moving average price is $267.74 and its 200 day moving average price is $244.04. The stock has a market capitalization of $148.99 billion, a P/E ratio of 21.63, a P/E/G ratio of 2.21 and a beta of 1.10.

Lowe's Companies (NYSE:LOW - Get Free Report) last issued its earnings results on Tuesday, August 20th. The home improvement retailer reported $4.10 EPS for the quarter, beating the consensus estimate of $3.96 by $0.14. Lowe's Companies had a negative return on equity of 47.07% and a net margin of 8.25%. The business had revenue of $23.59 billion for the quarter, compared to the consensus estimate of $23.93 billion. During the same period last year, the business posted $4.56 EPS. The company's revenue was down 5.5% compared to the same quarter last year. On average, equities research analysts forecast that Lowe's Companies, Inc. will post 11.93 earnings per share for the current year.

Lowe's Companies Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, February 5th. Stockholders of record on Wednesday, January 22nd will be paid a $1.15 dividend. The ex-dividend date of this dividend is Wednesday, January 22nd. This represents a $4.60 dividend on an annualized basis and a dividend yield of 1.75%. Lowe's Companies's dividend payout ratio is presently 38.14%.

Insider Activity

In related news, CAO Dan Clayton Griggs, Jr. sold 6,769 shares of the stock in a transaction that occurred on Thursday, September 12th. The shares were sold at an average price of $248.82, for a total value of $1,684,262.58. Following the completion of the sale, the chief accounting officer now directly owns 9,383 shares of the company's stock, valued at approximately $2,334,678.06. This represents a 41.91 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Margrethe R. Vagell sold 5,730 shares of Lowe's Companies stock in a transaction that occurred on Wednesday, October 2nd. The shares were sold at an average price of $271.45, for a total transaction of $1,555,408.50. Following the transaction, the executive vice president now directly owns 13,214 shares in the company, valued at $3,586,940.30. This represents a 30.25 % decrease in their position. The disclosure for this sale can be found here. 0.26% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Discipline Wealth Solutions LLC purchased a new stake in Lowe's Companies during the third quarter valued at $630,000. Soltis Investment Advisors LLC increased its stake in Lowe's Companies by 8.2% in the third quarter. Soltis Investment Advisors LLC now owns 1,907 shares of the home improvement retailer's stock worth $517,000 after purchasing an additional 144 shares during the period. TD Private Client Wealth LLC boosted its position in Lowe's Companies by 17.1% in the 3rd quarter. TD Private Client Wealth LLC now owns 5,125 shares of the home improvement retailer's stock valued at $1,388,000 after buying an additional 749 shares during the period. Fortem Financial Group LLC purchased a new position in shares of Lowe's Companies in the third quarter worth about $232,000. Finally, Arete Wealth Advisors LLC lifted its holdings in shares of Lowe's Companies by 7.6% during the third quarter. Arete Wealth Advisors LLC now owns 3,161 shares of the home improvement retailer's stock worth $855,000 after purchasing an additional 224 shares during the period. 74.06% of the stock is currently owned by institutional investors.

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.

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