Lowe’s Cos. (NYSE:LOW) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Tuesday. The brokerage presently has a $78.00 price target on the home improvement retailer’s stock. Zacks Investment Research’s price target points to a potential upside of 11.46% from the stock’s previous close.
According to Zacks, “An improving job picture, gradual recovery in the housing market and merchandising initiatives along with efforts to provide better omni-channel customer experience bode well for Lowe’s. It also remains well positioned to reap the benefits of strategic acquisitions done earlier. Lowe’s updated its fiscal 2016 guidance to reflect the buyout of RONA, and now expects total sales growth of about 10%. Net sales rose 5.3% in the second quarter but missed the Zacks Consensus Estimate after having surpassed the same in the trailing four quarters. Lowe’s also delivered a negative earnings surprise, although it managed to register an increase of 14.2%. Despite year over year growth in both top and bottom lines, management cut its full-year earnings forecast. Analysts also pointed that the company’s expansion into regions where it already operates could cannibalize its sales performance and lower traffic count at existing stores.”
Several other brokerages have also issued reports on LOW. Stifel Nicolaus assumed coverage on Lowe’s Cos. in a research report on Tuesday, August 2nd. They set a “buy” rating and a $100.00 target price for the company. Vetr lowered Lowe’s Cos. from a “buy” rating to a “hold” rating and set a $85.38 target price for the company. in a research report on Thursday, July 28th. Cantor Fitzgerald restated a “buy” rating and set a $85.00 target price (up previously from $70.00) on shares of Lowe’s Cos. in a research report on Saturday, August 13th. JPMorgan Chase & Co. reiterated a “buy” rating and issued a $89.00 price target on shares of Lowe’s Cos. in a report on Tuesday, August 16th. Finally, Peel Hunt reiterated a “buy” rating and issued a $85.00 price target on shares of Lowe’s Cos. in a report on Wednesday, July 6th. Seven research analysts have rated the stock with a hold rating, twenty-one have given a buy rating and one has issued a strong buy rating to the stock. Lowe’s Cos. presently has an average rating of “Buy” and a consensus price target of $85.62.
Lowe’s Cos. (NYSE:LOW) traded up 0.07% on Tuesday, reaching $70.03. The company had a trading volume of 2,986,236 shares. Lowe’s Cos. has a 52 week low of $62.62 and a 52 week high of $83.65. The company has a market capitalization of $61.25 billion, a P/E ratio of 22.70 and a beta of 1.14. The stock’s 50-day moving average is $72.59 and its 200-day moving average is $77.08.
Lowe’s Cos. (NYSE:LOW) last announced its earnings results on Wednesday, August 17th. The home improvement retailer reported $1.37 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $1.41 by $0.04. Lowe’s Cos. had a net margin of 4.58% and a return on equity of 43.38%. The business had revenue of $18.26 billion for the quarter, compared to analysts’ expectations of $18.42 billion. During the same quarter last year, the firm earned $1.20 EPS. The firm’s quarterly revenue was up 5.3% on a year-over-year basis. Equities research analysts forecast that Lowe’s Cos. will post $4.02 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which will be paid on Wednesday, November 2nd. Stockholders of record on Wednesday, October 19th will be paid a dividend of $0.35 per share. This represents a $1.40 annualized dividend and a dividend yield of 2.00%. The ex-dividend date is Monday, October 17th. Lowe’s Cos.’s payout ratio is currently 45.16%.
Large investors have recently bought and sold shares of the company. Wellington Management Group LLP raised its position in shares of Lowe’s Cos. by 6.9% in the first quarter. Wellington Management Group LLP now owns 28,620,388 shares of the home improvement retailer’s stock worth $2,167,994,000 after buying an additional 1,841,494 shares in the last quarter. Ameriprise Financial Inc. raised its position in shares of Lowe’s Cos. by 10.8% in the second quarter. Ameriprise Financial Inc. now owns 13,161,669 shares of the home improvement retailer’s stock worth $1,042,084,000 after buying an additional 1,280,426 shares in the last quarter. Geode Capital Management LLC raised its position in shares of Lowe’s Cos. by 5.2% in the first quarter. Geode Capital Management LLC now owns 7,850,217 shares of the home improvement retailer’s stock worth $593,514,000 after buying an additional 385,207 shares in the last quarter. Bank of Montreal Can bought a new position in shares of Lowe’s Cos. during the second quarter worth $284,442,000. Finally, Eaton Vance Management raised its position in shares of Lowe’s Cos. by 10.9% in the second quarter. Eaton Vance Management now owns 3,265,522 shares of the home improvement retailer’s stock worth $258,531,000 after buying an additional 321,288 shares in the last quarter. 75.45% of the stock is currently owned by institutional investors and hedge funds.
Lowe’s Cos. Company Profile
Lowe’s Companies, Inc (Lowe’s) is a home improvement retailer. The Company operates approximately 1,860 home improvement and hardware stores, representing approximately 200 million square feet of retail selling space. The Company operates approximately 1,800 stores located across over 50 states in the United States, including approximately 80 Orchard Supply Hardware (Orchard) stores in California and Oregon, as well as approximately 40 stores in Canada and over 10 stores in Mexico.
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