Stock Traders Buy High Volume of Call Options on Lowe’s Companies (NYSE:LOW)

Lowe’s Companies, Inc. (NYSE:LOW) was the target of some unusual options trading activity on Friday. Stock traders acquired 128,483 call options on the company. This represents an increase of approximately 573% compared to the average volume of 19,079 call options.

Institutional investors and hedge funds have recently made changes to their positions in the stock. Pacifica Partners Inc. acquired a new position in Lowe’s Companies during the fourth quarter worth $25,000. Bell Investment Advisors Inc bought a new stake in Lowe’s Companies during the third quarter worth $32,000. Destiny Wealth Partners LLC bought a new stake in Lowe’s Companies during the third quarter worth $33,000. Herold Advisors Inc. bought a new position in shares of Lowe’s Companies in the third quarter valued at about $39,000. Finally, Vaughan Nelson Investment Management L.P. bought a new position in shares of Lowe’s Companies in the third quarter valued at about $44,000. Institutional investors and hedge funds own 74.17% of the company’s stock.

LOW has been the topic of several research analyst reports. Truist Securities raised their price target on shares of Lowe’s Companies from $217.00 to $284.00 and gave the stock a “buy” rating in a research report on Thursday, November 18th. DA Davidson lifted their target price on shares of Lowe’s Companies from $286.00 to $292.00 in a research report on Thursday, December 30th. Wells Fargo & Company lifted their target price on shares of Lowe’s Companies from $280.00 to $295.00 and gave the company an “overweight” rating in a research report on Monday, December 13th. Loop Capital lifted their target price on shares of Lowe’s Companies from $220.00 to $240.00 and gave the company a “hold” rating in a research report on Thursday, November 18th. Finally, Robert W. Baird lifted their price target on shares of Lowe’s Companies from $235.00 to $285.00 and gave the company an “outperform” rating in a report on Wednesday, November 17th. One investment analyst has rated the stock with a sell rating, four have assigned a hold rating and twenty-one have assigned a buy rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Buy” and a consensus price target of $258.71.

Lowe’s Companies stock opened at $243.40 on Friday. The stock has a market capitalization of $163.99 billion, a PE ratio of 21.15, a price-to-earnings-growth ratio of 1.53 and a beta of 1.31. Lowe’s Companies has a twelve month low of $150.84 and a twelve month high of $263.31. The company has a quick ratio of 0.39, a current ratio of 1.19 and a debt-to-equity ratio of 49.23. The company has a 50 day moving average of $249.67 and a 200-day moving average of $220.72.

Lowe’s Companies (NYSE:LOW) last released its quarterly earnings results on Wednesday, November 17th. The home improvement retailer reported $2.73 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $2.35 by $0.38. The company had revenue of $22.92 billion during the quarter, compared to analysts’ expectations of $22.06 billion. Lowe’s Companies had a net margin of 8.63% and a return on equity of 25,100.30%. The business’s quarterly revenue was up 2.7% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.98 earnings per share. Equities analysts anticipate that Lowe’s Companies will post 11.94 EPS for the current fiscal year.

Lowe’s Companies declared that its Board of Directors has approved a stock buyback program on Wednesday, December 15th that allows the company to buyback $13.00 billion in shares. This buyback authorization allows the home improvement retailer to reacquire up to 7.6% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s management believes its stock is undervalued.

The business also recently declared a quarterly dividend, which will be paid on Wednesday, February 2nd. Stockholders of record on Wednesday, January 19th will be issued a $0.80 dividend. This represents a $3.20 annualized dividend and a dividend yield of 1.31%. The ex-dividend date of this dividend is Tuesday, January 18th. Lowe’s Companies’s dividend payout ratio (DPR) is presently 27.80%.

About Lowe’s Companies

Lowe’s Cos., Inc engages in the retail sale of home improvement products. The firm offers products for maintenance, repair, remodelling, home decorating and property maintenance. It also provides home improvement products in the following categories: appliances, bathroom, building supply, electrical, flooring, hardware, paint, kitchen, plumbing, lighting & fans, outdoor living, windows and doors.

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