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

Lowe’s Companies, Inc. (NYSE:LOW) saw unusually large options trading activity on Monday. Stock traders bought 18,978 call options on the company. This represents an increase of approximately 134% compared to the average volume of 8,127 call options.

Wall Street Analyst Weigh In

LOW has been the subject of several recent analyst reports. Mizuho dropped their target price on shares of Lowe’s Companies from $294.00 to $280.00 and set an “outperform” rating for the company in a report on Thursday, May 21st. Oppenheimer decreased their price target on Lowe’s Companies from $315.00 to $275.00 and set an “outperform” rating on the stock in a report on Monday, May 18th. UBS Group lowered their price objective on Lowe’s Companies from $315.00 to $285.00 and set a “buy” rating on the stock in a research report on Thursday, May 21st. Piper Sandler dropped their price objective on Lowe’s Companies from $300.00 to $276.00 and set an “overweight” rating for the company in a research note on Thursday, May 21st. Finally, Royal Bank Of Canada cut their target price on Lowe’s Companies from $264.00 to $232.00 and set a “sector perform” rating for the company in a research 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’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $264.57.

Lowe’s Companies Stock Performance

LOW opened at $207.71 on Wednesday. The stock has a market capitalization of $116.47 billion, a price-to-earnings ratio of 17.56, a PEG ratio of 2.62 and a beta of 0.86. The company has a fifty day moving average of $218.22 and a 200 day moving average of $242.24. Lowe’s Companies has a fifty-two week low of $203.40 and a fifty-two week high of $293.06.

Lowe’s Companies (NYSE:LOW) last announced its quarterly earnings results on Wednesday, May 20th. The home improvement retailer reported $3.03 EPS for the quarter, topping the consensus estimate of $2.97 by $0.06. The business 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 business’s quarterly revenue was up 10.3% compared to the same quarter last year. During the same quarter in the previous year, the company earned $2.92 EPS. Lowe’s Companies has set its FY 2026 guidance at 12.250-12.750 EPS. On average, equities research analysts forecast that Lowe’s Companies will post 12.48 earnings per share for the current year.

Lowe’s Companies Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, August 5th. Stockholders of record on Wednesday, July 22nd will be issued a $1.25 dividend. This represents a $5.00 annualized dividend and a dividend yield of 2.4%. This is a positive change from Lowe’s Companies’s previous quarterly dividend of $1.20. The ex-dividend date of this dividend is Wednesday, July 22nd. Lowe’s Companies’s payout ratio is presently 40.57%.

Insider Buying and Selling at Lowe’s Companies

In other Lowe’s Companies news, EVP Juliette Williams Pryor sold 9,330 shares of Lowe’s Companies stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of $224.81, for a total transaction of $2,097,477.30. Following the transaction, the executive vice president owned 16,142 shares of the company’s stock, valued at $3,628,883.02. The trade was a 36.63% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Janice Dupre sold 14,150 shares of the company’s stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $221.90, for a total transaction of $3,139,885.00. Following the completion of the transaction, the executive vice president owned 39,785 shares of the company’s stock, valued at approximately $8,828,291.50. The trade was a 26.24% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 25,980 shares of company stock valued at $5,796,937 over the last 90 days. 0.29% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Lowe’s Companies

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Swiss RE Ltd. bought a new position in shares of Lowe’s Companies during the 4th quarter valued at approximately $25,000. Wilkerson Advisory Group LLC bought a new stake in Lowe’s Companies in the fourth quarter worth $27,000. OLD Second National Bank of Aurora increased its position in Lowe’s Companies by 52.5% in the fourth quarter. OLD Second National Bank of Aurora now owns 122 shares of the home improvement retailer’s stock worth $29,000 after purchasing an additional 42 shares during the last quarter. Sankala Group LLC purchased a new stake in Lowe’s Companies during the fourth quarter valued at $33,000. Finally, Triumph Capital Management purchased a new stake in Lowe’s Companies during the third quarter valued at $34,000. 74.06% of the stock is owned by institutional investors.

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.