Lowe’s Companies (NYSE:LOW) Shares Gap Down – Should You Sell?

Lowe’s Companies, Inc. (NYSE:LOW) gapped down prior to trading on Wednesday . The stock had previously closed at $278.59, but opened at $266.25. Lowe’s Companies shares last traded at $265.8780, with a volume of 1,113,441 shares traded.

Key Headlines Impacting Lowe’s Companies

Here are the key news stories impacting Lowe’s Companies this week:

• Positive Sentiment: Q4 results beat expectations: Lowe’s reported $1.98 EPS and $20.58B revenue (+10.9% Y/Y), driven by Pro, online and holiday strength — evidence of operational resilience. Q4 Earnings
• Positive Sentiment: Multiple brokerages raised price targets and reiterated buy/outperform views (Goldman, Guggenheim, Wells Fargo, Piper Sandler, Mizuho, Telsey), signaling Wall Street support and providing upside catalysts. Analyst Raises
• Positive Sentiment: Macro tailwind developing: 30-year mortgage rates fell below 6%, which could ease the housing ‘lock‑in’ effect and eventually boost remodel/removal demand. That’s a potential multi‑month positive for Lowe’s sales. Mortgage Rates
• Neutral Sentiment: Lowe’s is targeting $1B of productivity gains in FY2026 and is using AI and cost cuts (including ~600 corporate roles) to protect margins — a mix of near‑term restructuring costs and longer‑term efficiency. Productivity Plan
• Neutral Sentiment: Unusually large options volume indicates elevated trading and positioning by short‑term traders; watch for increased intraday volatility. Options Volume
• Neutral Sentiment: Partnerships and strategic moves (e.g., Affirm payment plans, acquisitions to grow Pro business) support longer‑term revenue diversification but add integration risk. Affirm Partnership
• Negative Sentiment: Management commentary and FY2026 guidance were cautious — the company flagged housing weakness and conservative outlook, which sparked the recent sell‑off as investors discounted future growth. Housing Headwinds
• Negative Sentiment: There are some price‑target trims and neutral/hold actions (TD Cowen, DA Davidson, a few smaller adjustments) reflecting concerns about guidance and margin pressure from acquisitions — potential headwinds for near‑term multiple expansion. Analyst Cuts

Analyst Ratings Changes

Several research analysts have issued reports on the stock. Telsey Advisory Group lifted their price target on shares of Lowe’s Companies from $285.00 to $295.00 and gave the stock an “outperform” rating in a research report on Thursday. Barclays upgraded Lowe’s Companies from an “equal weight” rating to an “overweight” rating and set a $285.00 target price on the stock in a report on Wednesday, January 7th. The Goldman Sachs Group upped their target price on Lowe’s Companies from $283.00 to $300.00 and gave the company a “buy” rating in a report on Thursday. Argus dropped their price target on Lowe’s Companies from $290.00 to $286.00 and set a “buy” rating on the stock in a research note on Tuesday, December 2nd. Finally, Stifel Nicolaus upped their price objective on shares of Lowe’s Companies from $230.00 to $250.00 and gave the company a “hold” rating in a research note on Monday, December 1st. Twenty-one research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $291.64.

Lowe’s Companies Trading Up 0.0%

The company has a market cap of $148.38 billion, a price-to-earnings ratio of 22.32, a P/E/G ratio of 4.24 and a beta of 0.97. The business has a fifty day moving average price of $266.42 and a two-hundred day moving average price of $254.31.

Lowe’s Companies (NYSE:LOW) last released its quarterly earnings data on Wednesday, February 25th. The home improvement retailer reported $1.98 earnings per share for the quarter, beating the consensus estimate of $1.94 by $0.04. The firm had revenue of $20.58 billion for the quarter, compared to analyst estimates of $20.34 billion. Lowe’s Companies had a net margin of 7.71% and a negative return on equity of 61.40%. The company’s revenue for the quarter was up 10.9% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.93 EPS. Lowe’s Companies has set its FY 2026 guidance at 12.250-12.75 EPS. On average, analysts anticipate that Lowe’s Companies, Inc. will post 11.9 EPS for the current year.

Insider Buying and Selling

In other Lowe’s Companies news, CEO Marvin R. Ellison sold 18,000 shares of the company’s stock in a transaction dated Friday, January 9th. The stock was sold at an average price of $261.17, for a total value of $4,701,060.00. Following the transaction, the chief executive officer directly owned 231,043 shares of the company’s stock, valued at $60,341,500.31. This represents a 7.23% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.27% of the stock is owned by company insiders.

Hedge Funds Weigh In On Lowe’s Companies

A number of hedge funds have recently added to or reduced their stakes in LOW. Swiss RE Ltd. acquired a new position in shares of Lowe’s Companies during the 4th quarter worth $25,000. Howard Hughes Medical Institute acquired a new position in Lowe’s Companies during the second quarter worth $27,000. Wilkerson Advisory Group LLC acquired a new position in Lowe’s Companies during the fourth quarter worth $27,000. Activest Wealth Management raised its holdings in Lowe’s Companies by 78.5% during the third quarter. Activest Wealth Management now owns 116 shares of the home improvement retailer’s stock valued at $29,000 after buying an additional 51 shares in the last quarter. Finally, OLD Second National Bank of Aurora lifted its position in shares of Lowe’s Companies by 52.5% in the fourth quarter. OLD Second National Bank of Aurora now owns 122 shares of the home improvement retailer’s stock worth $29,000 after buying an additional 42 shares during the last quarter. Institutional investors and hedge funds own 74.06% of the company’s stock.

Lowe’s Companies Company Profile

Lowe’s Companies, Inc is a leading home improvement retailer that operates large-format stores and digital channels serving both do-it-yourself homeowners and professional contractors. The company offers a broad assortment of products including building materials, lumber, appliances, tools and hardware, plumbing and electrical supplies, paint, flooring, kitchen and bath fixtures, outdoor and garden products, and home decor. Lowe’s also provides a range of services such as installation, home improvement financing, tool and equipment rental, and contractor-focused sales programs.

Operations are centered on a nationwide brick-and-mortar store network supported by distribution centers and an e-commerce platform that enables online ordering, delivery and in-store pickup.