Loop Capital has recently raised Lowe’s Companies Inc (LOW) stock to Buy rating, as announced on October 9, 2024, according to Finviz. Earlier, on October 2, 2024, Telsey Advisory Group had reiterated the stock to Market Perform, setting a price target of $275 for LOW stock. Oppenheimer also raised Outperform rating with a price target of $305. Additionally, Gordon Haskett reduced Hold rating on April 3, 2024, with a target price of $245. DA Davidson analysts, in their report published on March 27, 2024, also reduced Neutral rating for Lowe’s Companies Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Lowe’s Companies Inc (LOW) Stock Trading Recap
On Monday, Lowe’s Companies Inc (LOW) stock saw a modest uptick, ending the day at $280.73 which represents a slight increase of $4.97 or 1.80% from the prior close of $275.76. The stock opened at $275.69 and touched a low of $275.51 during the day, reaching a high of $281.4. The volume of shares traded was 1.75 million falling short of the average volume of 2.31 million.
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LOW Stock Performance and Moving Averages
In recent trading, Lowe’s Companies Inc (LOW) stock price has shown some volatility, fluctuating 4.54% over the last five trades and 9.91% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 22.05%, and it has gained 16.50% in the previous three months. Currently, LOW is trading at 4.70%, 10.77%, and 19.28% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, LOW, a Consumer Cyclical sector stock, is trading 0.95% below its 52-week high but remains 54.37% above its 52-week low. The Average True Range (ATR) (14 days) of 5.03 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Lowe’s Companies Inc’s Profitability and Valuation Ratios
Lowe’s Companies Inc’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 12.52% and a profit margin of 8.23%, with a gross margin of 22.05%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Lowe’s Companies Inc’s market capitalization stands at $159.26 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 23.27, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 22.24. Additionally, the Price-to-Sales Ratio is 1.9, reflecting the market’s valuation of the company’s sales.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 0.11% of Lowe’s Companies Inc (LOW)’s shares, while financial institutions hold 77.17%.
Notable insider trades include McFarland Joseph Michael, EVP, Stores at Lowe’s Companies Inc (LOW), who sold 4000 shares on Oct 03 ’24, at $270.74 each, totaling $1.08 million. On Oct 03 ’24, Godbole Seemantini, EVP, Chief Information Officer, sold 26186 shares for $271.73 each, amounting to $7.12 million. Additionally, on Oct 02 ’24, Vagell Margrethe R sold 5730 shares at $271.45 each, generating $1.56 million.
