Lowe’s companies target unusually high options trading (NYSE: LOW)
Lowe’s Companies, Inc. (NYSE: LOW) saw unusual options trading activity on Friday. Traders acquired 128,483 call options on the stock. This represents an increase of approximately 573% from the typical volume of 19,079 call options.
Institutional investors and hedge funds have recently changed their stock holdings. Pacifica Partners Inc. acquired a new stock position in Lowe’s Companies in Q4 valued at approximately $25,000. Bell Investment Advisors Inc acquired a new position in shares of Lowe’s Companies in Q3 valued at approximately $32,000. Destiny Wealth Partners LLC acquired a new position in shares of Lowe’s Companies in Q3 valued at approximately $33,000. Moors & Cabot Inc. increased its stake in Lowe’s Companies by 80.7% in the 3rd quarter. Moors & Cabot Inc. now owns 32,000 shares of the home improvement retailer valued at $36,000 after acquiring 14,288 additional shares last quarter. Finally, Herold Advisors Inc. acquired a new stake in Lowe’s Companies in Q3 valued at approximately $39,000. Institutional investors and hedge funds hold 74.17% of the company’s shares.
Shares of Lowe’s Companies traded down $7.30 during Friday’s trading, hitting $243.40. The company’s stock had a trading volume of 3,257,406 shares, compared to its average volume of 3,934,778. The stock has a 50-day moving average price of $249.67 and a two hundred days of $220.72. The company has a current ratio of 1.19, a quick ratio of 0.39 and a debt ratio of 49.23. Lowe’s Companies has a one-year low of $150.84 and a one-year high of $263.31. The stock has a market capitalization of $163.99 billion, a P/E ratio of 21.15, a price-to-growth earnings ratio of 1.53 and a beta of 1.31.
Lowe’s Companies (NYSE:LOW) last reported quarterly earnings data on Wednesday, November 17. The home improvement retailer reported EPS of $2.73 for the quarter, beating the Zacks consensus estimate of $2.35 by $0.38. The company posted revenue of $22.92 billion in the quarter, versus analyst estimates of $22.06 billion. Lowe’s Companies had a return on equity of 25,100.30% and a net margin of 8.63%. The company’s revenue increased 2.7% year over year. During the same period last year, the company earned earnings per share of $1.98. As a group, sell-side analysts expect Lowe’s Companies to post EPS of 11.94 for the current fiscal year.
Lowe’s Companies said its board of directors launched a stock repurchase program on Wednesday, Dec. 15 that authorizes the company to repurchase $13.00 billion in stock. This repurchase authorization authorizes the home improvement retailer to purchase up to 7.6% of its inventory through open market purchases. Stock buyback programs are usually a sign that a company’s management believes its stock is undervalued.
The company also recently announced a quarterly dividend, which will be paid on Wednesday, February 2. Shareholders of record on Wednesday, January 19 will receive a dividend of $0.80 per share. The ex-dividend date is Tuesday, January 18. This represents an annualized dividend of $3.20 and a dividend yield of 1.31%. The Lowe’s Companies payout ratio is currently 27.80%.
A number of analysts have commented on the stock. Truist raised its price target on shares of Lowe’s Companies from $217.00 to $284.00 and gave the company a “buy” rating in a Thursday, November 18 research note. Truist Securities raised its price target on shares of Lowe’s Companies from $217.00 to $284.00 and gave the stock a “buy” rating in a Thursday, November 18 research report. Morgan Stanley raised its price target on shares of Lowe’s Companies from $260.00 to $265.00 and gave the stock an “overweight” rating in a Thursday, Dec. 16 research report. Evercore ISI upgraded shares of Lowe’s Companies from an “in-line” rating to an “outperforming” rating and set a price target of $280.00 for the company in a Thursday, Jan. 6 research report. Finally, Wells Fargo & Company raised its price target on Lowe’s Companies stock from $280.00 to $295.00 and gave the stock an “overweight” rating in a Monday, Dec. 13 research report. One research analyst has rated the stock with a sell rating, four have issued a hold rating and twenty-one have assigned the company’s stock a buy rating. Based on data from MarketBeat, the stock has a consensus rating of “Buy” and a consensus price target of $258.71.
About Lowe’s Companies
Lowe’s Cos., Inc. is engaged in the retail sale of home improvement products. The company offers products for the maintenance, repair, renovation, interior decoration and upkeep of properties. It also provides home improvement products in the following categories: appliances, bathroom, building materials, electrical, flooring, hardware, paint, kitchen, plumbing, lighting and fans, outdoor living, windows and doors.
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