Key Points:
- Lowe’s CEO Marvin Ellison’s stake drops by $3.8 million due to a 7.29% share price decline over 13 days.
- Lowe’s first-quarter sales fell 4.1%, with total sales at $21.4 billion, reflecting weaker consumer spending on home improvements.
- Lowe’s market cap is now $122 billion, with shares down 3.72% year-to-date, impacting investors’ portfolios significantly.
One of America’s top Black CEOs, Marvin Ellison, the chairman, president, and CEO of Lowe’s Companies Inc., has seen the market value of his stake in the home improvement giant decline by millions of dollars due to a recent drop in the company’s share price.
According to data tracked by Billionaires.Africa, Ellison, recognized as one of the world’s highest-ranking Black CEOs on the Fortune 500 list, has seen the value of his stake in Lowe’s slump by $3.78 million over the past 13 days. This follows a previous increase in Ellison’s wealth from May 1 to 16, when his stake in Lowe’s grew by $1.2 million.
Lowe’s stock drops after sales miss
Lowe’s Companies Inc., a top player in the home improvement sector and a Fortune 50 company, boasts a vast network of over 2,200 stores, employing approximately 300,000 associates across the United States and Canada.
The company recently disclosed a decline in sales to kick off the year 2024, mirroring a retreat in consumer spending on major home improvement projects. Total sales for the first quarter ended May 3, 2024, amounted to $21.4 billion, marking a 4.1 percent drop from the prior-year period’s $22.3 billion.
On the New York Stock Exchange (NYSE), Lowe’s shares have declined by 7.29 percent in recent times, declining from $231.1 on May 17 to $214.3. This decrease has pushed Lowe’s market capitalization below $125 billion, resulting in significant losses for shareholders.
Ellison’s Lowe’s stake drops $3.78 million
The recent drop in Lowe’s share price has caused the market value of Ellison’s 0.038-percent stake in Lowe’s, equivalent to 224,800 shares. Over the past 13 days, his stake has decreased by $3.78 million, from $51.95 million on May 17 to $48.17 million.
Despite the decrease, Ellison remains one of the wealthiest Black CEOs in the United States and a prominent figure among global Black CEOs.
Your Money and Your Life: Investor impact
Lowe’s shares have slipped 3.72 percent year-to-date on the NYSE. This decline has resulted in a notable downturn for individual investors. To illustrate the impact, a $100,000 investment in Lowe’s at the start of the year would now be worth $96,280, reflecting a loss of $3,720.