Leeward Financial Partners LLC has reduced its holdings in Lowe’s Companies, Inc. by 5.7% during the second quarter, as reported in its latest Form 13F filing with the Securities and Exchange Commission (SEC). The investment firm now owns 1,295 shares of the home improvement retailer, following the sale of 78 shares during the quarter. At the close of the period, the value of Leeward Financial Partners’ stake in Lowe’s was approximately $287,000.
This reduction comes amid a broader trend, as several institutional investors have adjusted their positions in Lowe’s. Notably, Nuveen LLC acquired a new stake valued at around $681.2 million in the first quarter. Pacer Advisors Inc. significantly increased its holdings by 2,984.6%, now owning 2,038,069 shares worth approximately $475.3 million after purchasing an additional 1,971,996 shares.
Further increasing their positions, Wellington Management Group LLP raised its stake in Lowe’s by 49.0%, while Invesco Ltd. enhanced its holdings by 10.6%. Following these trades, Invesco now controls 5,207,081 shares, valued at around $1.2 billion. Additionally, Goldman Sachs Group Inc. increased its position by 6.9%, bringing its total to 5,111,747 shares valued at approximately $1.2 billion.
Currently, institutional investors and hedge funds hold 74.06% of Lowe’s stock.
Market Analyst Ratings and Stock Performance
The stock has received attention from market analysts, with several reports suggesting growth potential. Weiss Ratings reaffirmed a “buy (b-)” rating for Lowe’s in a report published on October 8, 2023. Meanwhile, JPMorgan Chase & Co. raised their price target from $280.00 to $283.00, maintaining an “overweight” rating. Similarly, UBS Group increased its price target from $300.00 to $325.00 while assigning a “buy” rating.
The consensus among analysts indicates a predominantly positive outlook, with sixteen giving a Buy rating, eight a Hold rating, and one a Sell rating. According to data from MarketBeat, the average rating for Lowe’s stock is “Moderate Buy,” with an average price target of $282.59.
On the trading front, Lowe’s shares opened at $238.29 on Friday, reflecting a decrease of 0.6%. The company boasts a market capitalization of $133.64 billion and has a price-to-earnings (P/E) ratio of 19.58. The stock has fluctuated between a twelve-month low of $206.38 and a high of $280.64.
In its most recent earnings report, released on August 20, 2023, Lowe’s reported earnings per share (EPS) of $4.33, surpassing the consensus estimate of $4.24. The company generated revenue of $23.96 billion for the quarter, slightly missing the expected $23.99 billion. Compared to the previous year, the revenue increased by 1.6%, while the net margin stood at 8.20%, with a negative return on equity of 52.02%.
Dividend Announcement and Insider Trading
In other news, Lowe’s recently announced a quarterly dividend of $1.20 per share, scheduled for payment on November 5, 2023. Shareholders of record on October 22, 2023 will receive this dividend, which translates to an annualized yield of 2.0%. The company’s dividend payout ratio is currently at 39.44%.
Additionally, significant insider trading activity has occurred, including a sale of 8,192 shares by Executive Vice President Brandon J. Sink on September 5, 2023, valued at $2.2 million. Following this transaction, Sink retained 21,603 shares in Lowe’s, reflecting a decrease of 27.49% in ownership. Similarly, CEO Marvin R. Ellison sold 40,000 shares on August 20, 2023, for a total of $10.56 million, reducing his ownership by 13.84%.
Insider sales in the past ninety days have totaled 92,931 shares, valued at approximately $24.9 million. Currently, insiders hold 0.27% of the company’s stock.
Lowe’s Companies, Inc. operates as a prominent home improvement retailer in the United States, providing a diverse range of products for construction, maintenance, and home improvement. With ongoing strategic changes and investor interest, the company remains a significant player in the retail sector.
