Lowe’s Companies Target of Unusually Large Options Trading (NYSE:LOW)

Lowe’s Companies, Inc. (NYSE:LOW) was the recipient of unusually large options trading on Monday. Stock investors acquired 18,978 call options on the company. This represents an increase of 134% compared to the typical daily volume of 8,127 call options.

Lowe’s Companies Trading Down 1.8%

LOW traded down $3.90 during trading on Monday, reaching $207.73. The stock had a trading volume of 4,263,757 shares, compared to its average volume of 2,859,122. The company has a market capitalization of $116.48 billion, a price-to-earnings ratio of 17.56, a P/E/G ratio of 2.67 and a beta of 0.86. The stock’s 50 day moving average is $219.20 and its two-hundred day moving average is $242.73. Lowe’s Companies has a one year low of $203.40 and a one year high of $293.06.

Lowe’s Companies (NYSE:LOW) last announced its earnings results on Wednesday, May 20th. The home improvement retailer reported $3.03 EPS for the quarter, beating analysts’ consensus estimates of $2.97 by $0.06. The firm had revenue of $23.08 billion for the quarter, compared to analysts’ expectations of $22.98 billion. Lowe’s Companies had a net margin of 7.51% and a negative return on equity of 67.96%. The company’s quarterly revenue was up 10.3% on a year-over-year basis. During the same quarter in the previous year, the business posted $2.92 EPS. Lowe’s Companies has set its FY 2026 guidance at 12.250-12.750 EPS. On average, equities research analysts predict that Lowe’s Companies will post 12.48 earnings per share for the current year.

Lowe’s Companies Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 5th. Investors of record on Wednesday, July 22nd will be paid a dividend of $1.25 per share. The ex-dividend date of this dividend is Wednesday, July 22nd. This is an increase from Lowe’s Companies’s previous quarterly dividend of $1.20. This represents a $5.00 annualized dividend and a yield of 2.4%. Lowe’s Companies’s payout ratio is presently 40.57%.

Insider Activity

In other news, EVP Juliette Williams Pryor sold 9,330 shares of the business’s stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $224.81, for a total transaction of $2,097,477.30. Following the transaction, the executive vice president directly owned 16,142 shares of the company’s stock, valued at approximately $3,628,883.02. The trade was a 36.63% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Janice Dupre sold 14,150 shares of the company’s stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $221.90, for a total value of $3,139,885.00. Following the transaction, the executive vice president owned 39,785 shares of the company’s stock, valued at approximately $8,828,291.50. This represents a 26.24% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 25,980 shares of company stock valued at $5,796,937. Company insiders own 0.29% of the company’s stock.

Hedge Funds Weigh In On Lowe’s Companies

Institutional investors and hedge funds have recently made changes to their positions in the business. Natixis Advisors LLC raised its stake in Lowe’s Companies by 3.5% during the fourth quarter. Natixis Advisors LLC now owns 630,956 shares of the home improvement retailer’s stock valued at $152,161,000 after buying an additional 21,119 shares during the last quarter. Bridges Investment Management Inc. grew its stake in shares of Lowe’s Companies by 6.1% in the fourth quarter. Bridges Investment Management Inc. now owns 446,441 shares of the home improvement retailer’s stock worth $107,664,000 after acquiring an additional 25,609 shares during the last quarter. Glenview Trust Co grew its stake in shares of Lowe’s Companies by 9.0% in the fourth quarter. Glenview Trust Co now owns 207,797 shares of the home improvement retailer’s stock worth $50,112,000 after acquiring an additional 17,225 shares during the last quarter. Kathmere Capital Management LLC increased its holdings in shares of Lowe’s Companies by 133.9% during the first quarter. Kathmere Capital Management LLC now owns 9,402 shares of the home improvement retailer’s stock valued at $2,222,000 after acquiring an additional 5,383 shares in the last quarter. Finally, LPL Financial LLC increased its holdings in shares of Lowe’s Companies by 2.3% during the fourth quarter. LPL Financial LLC now owns 993,332 shares of the home improvement retailer’s stock valued at $239,552,000 after acquiring an additional 22,175 shares in the last quarter. Institutional investors own 74.06% of the company’s stock.

Analyst Upgrades and Downgrades

Several brokerages have commented on LOW. UBS Group decreased their price objective on shares of Lowe’s Companies from $315.00 to $285.00 and set a “buy” rating for the company in a report on Thursday, May 21st. TD Cowen cut their target price on shares of Lowe’s Companies from $280.00 to $235.00 and set a “hold” rating on the stock in a research note on Thursday, May 21st. BNP Paribas Exane reduced their price target on shares of Lowe’s Companies from $228.00 to $202.00 and set an “underperform” rating on the stock in a research report on Thursday, May 21st. Truist Financial decreased their price target on shares of Lowe’s Companies from $280.00 to $255.00 and set a “buy” rating for the company in a research note on Thursday, May 21st. Finally, HSBC lowered their price objective on shares of Lowe’s Companies from $260.00 to $220.00 and set a “hold” rating for the company in a report on Thursday, May 21st. Twenty-three analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $264.57.

About Lowe’s Companies

Lowe’s Companies, Inc is a leading home improvement retailer that operates large-format stores and digital channels serving both do-it-yourself homeowners and professional contractors. The company offers a broad assortment of products including building materials, lumber, appliances, tools and hardware, plumbing and electrical supplies, paint, flooring, kitchen and bath fixtures, outdoor and garden products, and home decor. Lowe’s also provides a range of services such as installation, home improvement financing, tool and equipment rental, and contractor-focused sales programs.

Operations are centered on a nationwide brick-and-mortar store network supported by distribution centers and an e-commerce platform that enables online ordering, delivery and in-store pickup.