LOW's buybacks continues, Goldman Sachs: share buybacks will drive net equity demand in 2024
$Lowe's(LOW)$ buybacks continues
$5.9 B in buybacks YTD 2023,Since FY16 >$52 B in buybacks ,34% of shares outstanding bought back.
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$Lowe's(LOW)$ in recent years has relied on debt to fund buybacks Debt has doubled since FY19 FY23, YTD net debt increased ~$2.1B.
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$Lowe's(LOW)$ has guided to $7 B net debt increase for FY23-25. If evenly distributed that would be $2.3 B/year Current year seems on track or slightly above that From 2022 Analyst & Investor Conference.
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$Lowe's(LOW)$ is having a rough FY23 and just lowered FY revenue guidance over 3Q
The company last year modeled $87B ,FY revenue as a weak market It just lowered guidance to $86 billion.
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Regarding the corporate Buybacks, according to BofA Securities, corporate Buybacks as a % of market cap hit 2nd highest weekly level ever recorded the week prior.
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Goldman Sachs expects share buybacks to drive net equity demand in 2024.
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