MUFG Securities Increases Stake in Lowe’s Companies by 24.1%

MUFJ Securities Americas Inc. has increased its stake in Lowe’s Companies, Inc. (NYSE: LOW) by an impressive 24.1% during the second quarter of 2023. According to a recent filing with the U.S. Securities and Exchange Commission (SEC), the firm now owns 12,404 shares of the home improvement retailer, having acquired an additional 2,409 shares during this period. As of the end of June, MUFG’s holdings in Lowe’s were valued at approximately $2.75 million.

This move comes as various hedge funds have also adjusted their positions in Lowe’s. Notably, Solstein Capital LLC expanded its holdings by a remarkable 627.8%, now owning 131 shares valued at $29,000. Other firms, such as Olistico Wealth LLC and Traub Capital Management LLC, also made new investments during the quarter, with stake values of $33,000 and $30,000, respectively. Overall, institutional investors and hedge funds collectively own 74.06% of Lowe’s stock.

Current Market Performance and Dividend Announcement

Lowe’s shares opened at $234.12 on the New York Stock Exchange on Friday, showcasing a market capitalization of $131.30 billion. The company’s price-to-earnings ratio stands at 19.24, with a beta of 0.87. Over the past year, Lowe’s stock has fluctuated significantly, hitting a low of $206.38 and a high of $280.64.

Adding to investor interest, Lowe’s recently announced a quarterly dividend of $1.20, set to be disbursed on February 4, 2024. Shareholders on record as of January 21, 2024 will receive this payment, which translates to an annualized dividend of $4.80 and a yield of 2.1%. Currently, Lowe’s has a payout ratio of 39.80%, indicating a sustainable dividend policy.

Analyst Ratings and Insider Activity

Research analysts have recently weighed in on Lowe’s stock, with various ratings reflecting differing views on its future. On July 31, 2023, Citigroup lowered its target price from $253.00 to $242.00, assigning a “neutral” rating. Meanwhile, Bank of America adjusted its price objective from $290.00 to $280.00 while maintaining a “buy” rating. Other analysts, including those from Gordon Haskett and DA Davidson, also updated their ratings, leading to a consensus rating of “Moderate Buy” with an average price target of $276.41.

In the realm of insider trading, the company has seen significant activity. On September 11, 2023, Joseph Michael Mcfarland, Executive Vice President, sold 43,810 shares for approximately $11.94 million, resulting in a 39.69% reduction in his holdings. Similarly, Brandon J. Sink sold 8,192 shares on September 5, 2023, valued at around $2.20 million, reflecting a 27.49% decrease in his position. Collectively, insiders have sold 52,931 shares worth approximately $14.38 million over the past 90 days.

Lowe’s Companies, Inc. operates as a leading home improvement retailer in the United States, providing a wide range of products for construction, maintenance, and home improvement. With the recent adjustments in stock positions and ongoing analyst evaluations, the company remains a focal point for investors and market analysts alike.