Lowe’s Companies, Inc. (NYSE:LOW) has been downgraded by Loop Capital on January 23 which now rates the stock as Hold compared with Buy rating suggested in the past. Analysts at Barclays, shed their positive views on January 09 by lowering it fromOverweight to Equal Weight. The stock lost favor of Stifel analysts who expressed their lack of confidence in it using a downgrade from Buy to Hold on November 21. Gordon Haskett analysts came out with bearish views on November 08 when the call was made. They think the stock is now Hold compared to to their prior call for Accumulate.
Lowe’s Companies, Inc. (LOW) hit an intraday high Friday at $97.35. The shares finished at $97.17, after trading as low as $95.98 earlier in the session. It rose 0.3% in recent trade and currently has a stock-market value of $78.32B. Trading activity significantly improved as the volume at ready counter increased to 6,217,136 shares versus 4,596,800 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 4,584,259 shares. The stock is now 19.73% above against its bear-market low of $81.16 on May 01, 2018. It has retreated -21.13% since it’s 52-week high of $117.7 reached in September. Now the market price is down -2.75% on the year and up 5.21% YTD.
LOW’s 50 day simple moving average (SMA 50) price is $93.28 and its 200-day simple moving average (SMA 200) price is $97.67. The company’s stock currently has a total float of 801.63M shares. Its weekly volatility is hovering around 1.28% and felt 1.76% volatility in price over a month. On the upside, the share price will test short term resistance at around $97.69. On a downside, the stock is likely to find some support, which begins at $96.32. The failure to get near-term support could push it to $95.46.
Separately, it has been reported that multiple insider activity took place at Lowe’s Companies, Inc. (LOW). Director Rogers Brian C acquired 10,000 shares for $10,000 in transaction occurred on 2018/11/23. After making this transaction, the Director owns a direct stake of 880,200 shares, worth $971,700, as per the last closing price. On 2018/09/18 Croom Marshall A, EVP, CFO at LOW, dumped 15,735 shares at an average price of $114.61 per share. The selling total is valued at $4,436,102.
Director, Wardell Lisa W had invested in 273 shares for $273 through a trade on 2018/08/24. Following this activity, the insider holds 29,408 shares worth $26,527 as of recent close. Wall Street’s most bullish Lowe’s Companies, Inc. (NYSE:LOW) analysts are predicting the share price to blow past $128 per share during the next 12 months. The current median share price forecast by them is $110, suggesting that the stock could increase 13.2% in that time frame. The average price target of $110.21 calls for a nearly 13.42% increase in the stock price.
When looking at valuations, Lowe’s Companies, Inc. (LOW) has a cheap P/E of 21.48x as compared to industry average of 31.07x. Moreover, it trades for 16.11 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 14.52x price/book and 1.1x price/sales. Compared to others, Lowe’s Companies, Inc. is in a different league with regards to profitability, having net margins of 5.2%. To put some perspective around this, the industry’s average net margin is 17.09%. LOW’s ROE is 64.6%, which is also considerably better than the industry’s ROE of 31.18%. It’s also very liquid in the near term, with a current ratio of 1. The stock has a debt/capital of 2.89.
Shares of Lowe’s Companies, Inc. (LOW) have gained 6.4% since the company’s last earnings report. Over the past 12 fiscal quarters, Lowe’s Companies, Inc. (NYSE:LOW) has topped consensus earnings estimates in 5 quarters (41%), missed earnings in 6 quarters (50%), whereas at 1 occasion EPS met analyst expectations. LOW last reported earnings on November 20, 2018 when it released Oct-18 results that exceeded expectations. The company raked in $1.04 per share, -83.23% change on the same period last year. That was better than consensus for $0.98. Revenue for the recent quarter stood at $17.42 billion, up 4% on last year and below the $17.36 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $17.44 billion to $18.18 billion, which should be compared with $18.32 billion generated last year. EPS is seen in a range of $1.21 to $1.39, against the $1.54 reported a year ago.