Sustainable Growth Advisers LP Reduces Holdings in Lowe’s (LOW)

Sustainable Growth Advisers LP reduced its position in Lowe’s (NYSE:LOW) by 50.9% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,774,429 shares of the home improvement retailer’s stock after selling 1,836,905 shares during the quarter. Lowe’s makes up approximately 1.8% of Sustainable Growth Advisers LP’s portfolio, making the stock its 29th biggest position. Sustainable Growth Advisers LP’s holdings in Lowe’s were worth $155,706,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Glenview State Bank Trust DEPT. acquired a new position in shares of Lowe’s during the fourth quarter worth about $204,000. Clark Capital Management Group Inc. grew its position in shares of Lowe’s by 10.1% during the fourth quarter. Clark Capital Management Group Inc. now owns 11,156 shares of the home improvement retailer’s stock worth $1,037,000 after buying an additional 1,019 shares in the last quarter. TRUE Private Wealth Advisors acquired a new position in shares of Lowe’s during the fourth quarter worth about $465,000. Capital Investment Advisory Services LLC grew its position in shares of Lowe’s by 14.5% during the fourth quarter. Capital Investment Advisory Services LLC now owns 36,026 shares of the home improvement retailer’s stock worth $3,348,000 after buying an additional 4,563 shares in the last quarter. Finally, Meadow Creek Investment Management LLC grew its position in shares of Lowe’s by 49.7% during the fourth quarter. Meadow Creek Investment Management LLC now owns 23,584 shares of the home improvement retailer’s stock worth $2,192,000 after buying an additional 7,832 shares in the last quarter. 73.15% of the stock is owned by institutional investors.

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Shares of Lowe’s opened at $86.34 on Friday, according to MarketBeat Ratings. The company has a debt-to-equity ratio of 2.65, a current ratio of 1.06 and a quick ratio of 0.11. Lowe’s has a twelve month low of $70.76 and a twelve month high of $108.98. The company has a market capitalization of $71.66 billion, a price-to-earnings ratio of 19.67, a PEG ratio of 0.91 and a beta of 1.33.

Lowe’s (NYSE:LOW) last issued its quarterly earnings data on Wednesday, February 28th. The home improvement retailer reported $0.74 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.87 by ($0.13). Lowe’s had a net margin of 5.02% and a return on equity of 65.17%. The firm had revenue of $15.49 billion during the quarter, compared to analysts’ expectations of $15.34 billion. During the same quarter in the prior year, the firm posted $0.86 EPS. Lowe’s’s quarterly revenue was down 1.8% compared to the same quarter last year. sell-side analysts anticipate that Lowe’s will post 5.46 earnings per share for the current year.

Lowe’s announced that its Board of Directors has authorized a share buyback plan on Friday, January 26th that permits the company to repurchase $5.00 billion in shares. This repurchase authorization permits the home improvement retailer to buy shares of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s management believes its shares are undervalued.

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, May 9th. Shareholders of record on Wednesday, April 25th were paid a $0.41 dividend. This represents a $1.64 dividend on an annualized basis and a yield of 1.90%. The ex-dividend date was Tuesday, April 24th. Lowe’s’s dividend payout ratio is currently 37.36%.

A number of brokerages have recently commented on LOW. Credit Suisse Group set a $111.00 price objective on Lowe’s and gave the stock a “buy” rating in a research report on Monday, May 14th. JPMorgan Chase reissued a “neutral” rating and set a $100.00 price objective on shares of Lowe’s in a research report on Tuesday, March 6th. Gabelli began coverage on Lowe’s in a research report on Wednesday, April 11th. They set a “buy” rating and a $113.00 price objective for the company. Wedbush reissued a “hold” rating and set a $80.00 price objective (down from $85.00) on shares of Lowe’s in a research report on Thursday, March 1st. Finally, Royal Bank of Canada lowered their price objective on Lowe’s to $102.00 and set an “outperform” rating for the company in a research report on Thursday, March 1st. One analyst has rated the stock with a sell rating, ten have issued a hold rating and twenty-four have given a buy rating to the company’s stock. Lowe’s presently has a consensus rating of “Buy” and an average price target of $99.00.

Lowe’s Profile

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

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Institutional Ownership by Quarter for Lowe`s (NYSE:LOW)