Lowe’s Companies (LOW) Shares Gap Down on Disappointing Earnings

Shares of Lowe’s Companies, Inc. (NYSE:LOW) gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $94.63, but opened at $97.94. Lowe’s Companies shares last traded at $94.93, with a volume of 766358 shares.

The home improvement retailer reported $1.22 earnings per share for the quarter, missing the consensus estimate of $1.33 by ($0.11). Lowe’s Companies had a return on equity of 80.91% and a net margin of 3.24%. The business had revenue of $17.74 billion for the quarter, compared to the consensus estimate of $17.65 billion. During the same quarter in the prior year, the company earned $1.19 earnings per share. Lowe’s Companies’s quarterly revenue was up 2.2% compared to the same quarter last year.

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, May 8th. Investors of record on Wednesday, April 24th were given a dividend of $0.48 per share. The ex-dividend date was Tuesday, April 23rd. This represents a $1.92 annualized dividend and a dividend yield of 2.02%. Lowe’s Companies’s dividend payout ratio is currently 37.35%.

Several analysts recently weighed in on LOW shares. Wells Fargo & Co upped their price objective on Lowe’s Companies from $110.00 to $120.00 in a research report on Thursday, February 28th. Citigroup upped their price objective on Lowe’s Companies from $125.00 to $127.00 and gave the stock a “buy” rating in a research report on Monday, April 1st. Morgan Stanley set a $115.00 price objective on Lowe’s Companies and gave the stock a “buy” rating in a research report on Tuesday, March 19th. ValuEngine upgraded Lowe’s Companies from a “hold” rating to a “buy” rating in a research report on Thursday, February 28th. Finally, UBS Group dropped their price objective on Lowe’s Companies from $125.00 to $115.00 and set a “buy” rating for the company in a research report on Thursday. Nine equities research analysts have rated the stock with a hold rating and sixteen have assigned a buy rating to the company’s stock. The company has an average rating of “Buy” and an average price target of $113.70.

Hedge funds have recently modified their holdings of the company. Somerset Trust Co increased its stake in shares of Lowe’s Companies by 2.6% in the fourth quarter. Somerset Trust Co now owns 31,709 shares of the home improvement retailer’s stock valued at $2,929,000 after buying an additional 814 shares during the period. F3Logic LLC acquired a new stake in shares of Lowe’s Companies in the fourth quarter valued at about $2,135,000. Greatmark Investment Partners Inc. increased its stake in shares of Lowe’s Companies by 24.8% in the fourth quarter. Greatmark Investment Partners Inc. now owns 63,221 shares of the home improvement retailer’s stock valued at $5,839,000 after buying an additional 12,550 shares during the period. Kentucky Retirement Systems Insurance Trust Fund acquired a new stake in shares of Lowe’s Companies in the fourth quarter valued at about $1,467,000. Finally, BlackRock Inc. increased its stake in shares of Lowe’s Companies by 0.7% in the fourth quarter. BlackRock Inc. now owns 53,503,078 shares of the home improvement retailer’s stock valued at $4,941,544,000 after buying an additional 371,008 shares during the period. 75.53% of the stock is owned by institutional investors.

The company has a market cap of $75.49 billion, a price-to-earnings ratio of 18.47, a PEG ratio of 1.30 and a beta of 1.26. The company has a quick ratio of 0.11, a current ratio of 0.98 and a debt-to-equity ratio of 3.95.

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About Lowe’s Companies (NYSE:LOW)

Lowe's Companies, Inc, together with its subsidiaries, operates as a home improvement retailer in the United States, Canada, and Mexico. The company offers a line of products for construction, maintenance, repair, remodeling, and decorating. It provides home improvement products in various categories, such as lumber and building materials, appliances, seasonal and outdoor living, tools and hardware, fashion fixtures, rough plumbing and electrical, paint, millwork, lawn and garden, flooring, and kitchens.

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