Lowe’s Companies Inc (LOW) said on Wednesday that its hourly staff would receive an extra $100 million in discretionary bonuses, as the retailer makes preparations for the active holiday season.
This way Lowe’s total bonuses since the start of the pandemic would reach over $775 million, the company said.
Lowe’s shares closed higher for the sixth time in the past ten trading sessions in New York on Wednesday. It has also been the sharpest single-session gain since September 30th. The stock went up 2.11% ($3.48) to $168.47, after touching an intraday high at $169.81, or a price level not seen since September 16th ($171.60).
Shares of Lowe’s Companies Inc have risen 40.67% so far in 2020 compared with a 5.84% gain for the benchmark index, S&P 500 (SPX).
In 2019, Lowe’s Companies Inc’s stock went up 29.67%, thus, it again outperformed the S&P 500, which registered a 28.88% gain.
Lowe’s full-time employees will be paid an additional $300, while the bonus for its part-time staff and seasonal employees will equal $150.
Hourly personnel located at Lowe’s stores, distribution centers and store support centers across the United States will get the bonus on October 16th, the company said.
Analyst stock price forecast and recommendation
According to CNN Money, the 28 analysts, offering 12-month forecasts regarding Lowe’s Companies Inc’s stock price, have a median target of $182.50, with a high estimate of $205.00 and a low estimate of $155.00. The median estimate represents an 8.33% upside compared to the closing price of $168.47 on October 7th.
The same media also reported that at least 21 out of 31 surveyed investment analysts had rated Lowe’s Companies Inc’s stock as “Buy”, while 7 – as “Hold”.