5 Stocks That Are Aggressively Buying Back Shares According To Goldman Sachs

4. Lowe’s Companies, Inc. (NYSE:LOW)

Share Price Returns From November 2, 2022 to January 30, 2023: 9.62%

Number of Hedge Fund Holders: 61

Net Buyback Yield: 13%

Lowe’s Companies, Inc. (NYSE:LOW) is a North Carolina-based home improvement retailer that offers a range of products for construction, maintenance, repair, remodeling, and decorating. On December 7, Lowe’s Companies, Inc. (NYSE:LOW)’s board of directors announced that they authorized a new $15 billion common stock repurchase program. The new repurchase program has no expiration date and adds to the previous program’s balance, which came in at $6.4 billion on December 6.

On January 23, R5 Capital analyst Scott Mushkin downgraded Lowe’s Companies, Inc. (NYSE:LOW)’s to Sell from Hold with a price target of $184, down from $203.

According to Insider Monkey’s third quarter database, 61 hedge funds were bullish on Lowe’s Companies, Inc. (NYSE:LOW), compared to 53 funds in the last quarter. Bill Ackman’s Pershing Square held the biggest position in the company, comprising 10.3 million shares worth $2 billion. 

Baron Funds made the following comment about Lowe’s Companies, Inc. (NYSE:LOW) in its Q3 2022 investor letter:

“Lowe’s Companies, Inc. (NYSE:LOW) is the second-largest home improvement center in the U.S. The company has several competitive advantages including scale, distribution efficiencies, interconnected retail through stores/internet, excellent management, and a strong balance sheet. The company is valued at only 14 times estimated earnings per share versus its long-term average P/E multiple of approximately 18 times estimated earnings per share.

The shares of Lowe’s Companies, Inc. increased 7% in the most recent quarter following better-than-expected quarterly business results. Lowe’s is the second largest home improvement center in the U.S. The company has several competitive advantages including scale, distribution efficiencies, interconnected retail through stores/internet, excellent management, and a strong balance sheet. We believe the shares are attractively valued at only 14 times estimated earnings per share versus a long-term average P/E multiple of approximately 18 times estimated earnings per share.”