Lowe's Companies (NYSE:LOW) Stock Sees Unusually High Call Option Buying

Key Points

• Unusually high options activity: Investors purchased 13,431 Lowe’s call options, 63% above the typical volume of 8,224.
• Shares rose but remain below recent averages: Lowe’s stock gained $6.79 to $195.09, while its 50-day and 200-day moving averages stood at $200.41 and $215.19, respectively.
• Analysts remain broadly positive: The stock has a “Moderate Buy” consensus rating and an average price target of $254.29, compared with the recent share price; Lowe’s also declared a quarterly dividend of $1.25.

Lowe's Companies, Inc. (NYSE:LOW - Get Free Report) was the recipient of unusually large options trading on Thursday. Stock investors bought 13,431 call options on the stock. This is an increase of 63% compared to the typical volume of 8,224 call options.

Lowe's Companies Price Performance

Shares of LOW stock traded up $6.79 during trading hours on Thursday, hitting $195.09. 1,761,803 shares of the company's stock were exchanged, compared to its average volume of 2,952,051. The stock's 50-day moving average is $200.41 and its 200-day moving average is $215.19. Lowe's Companies has a 52 week low of $178.45 and a 52 week high of $293.06. The stock has a market cap of $109.46 billion, a price-to-earnings ratio of 16.49, a price-to-earnings-growth ratio of 1.58 and a beta of 0.89.

Lowe's Companies (NYSE:LOW - Get Free Report) last issued its quarterly earnings data on Wednesday, August 19th. The home improvement retailer reported $4.40 EPS for the quarter, topping analysts' consensus estimates of $4.22 by $0.18. Lowe's Companies had a net margin of 7.34% and a negative return on equity of 75.67%. The firm had revenue of $25.96 billion for the quarter, compared to analyst estimates of $26.13 billion. During the same quarter in the prior year, the firm earned $4.33 EPS. The company's revenue was up 8.3% on a year-over-year basis. Lowe's Companies has set its FY 2026 guidance at 12.250-12.250 EPS. Equities research analysts forecast that Lowe's Companies will post 12.26 earnings per share for the current fiscal year.

Lowe's Companies Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, November 4th. Stockholders of record on Wednesday, October 21st will be paid a $1.25 dividend. This represents a $5.00 annualized dividend and a dividend yield of 2.6%. The ex-dividend date of this dividend is Wednesday, October 21st. Lowe's Companies's dividend payout ratio (DPR) is 42.27%.

Analyst Ratings Changes

Several research analysts recently issued reports on LOW shares. Evercore set a $190.00 price target on shares of Lowe's Companies in a research report on Tuesday, October 6th. KeyCorp reaffirmed an "overweight" rating and set a $275.00 price objective on shares of Lowe's Companies in a report on Thursday, August 20th. Sanford C. Bernstein decreased their price objective on Lowe's Companies from $261.00 to $254.00 and set an "outperform" rating on the stock in a report on Wednesday, September 9th. DA Davidson reiterated a "neutral" rating and issued a $245.00 price objective on shares of Lowe's Companies in a research note on Wednesday, August 19th. Finally, Wells Fargo & Company dropped their target price on Lowe's Companies from $255.00 to $245.00 and set an "overweight" rating for the company in a report on Tuesday, August 11th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, twelve have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, Lowe's Companies has an average rating of "Moderate Buy" and an average price target of $254.29.

Hedge Funds Weigh In On Lowe's Companies

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Sankala Group LLC purchased a new stake in Lowe's Companies in the fourth quarter valued at $33,000. Markowski Investments purchased a new stake in shares of Lowe's Companies in the second quarter worth about $33,000. IAG Wealth Partners LLC grew its holdings in Lowe's Companies by 178.6% during the first quarter. IAG Wealth Partners LLC now owns 156 shares of the home improvement retailer's stock worth $37,000 after acquiring an additional 100 shares during the period. Provenance Wealth Advisors LLC grew its holdings in Lowe's Companies by 416.7% during the first quarter. Provenance Wealth Advisors LLC now owns 186 shares of the home improvement retailer's stock worth $44,000 after acquiring an additional 150 shares during the period. Finally, Legacy Wealth Managment LLC ID raised its position in Lowe's Companies by 219.7% during the first quarter. Legacy Wealth Managment LLC ID now owns 195 shares of the home improvement retailer's stock valued at $46,000 after acquiring an additional 134 shares in the last quarter. 74.06% of the stock is owned by institutional investors.

Lowe's Companies Company Profile

Lowe's Companies, Inc is a home improvement retailer serving homeowners, renters, and professional contractors primarily in the United States. The company operates through a network of retail stores and digital channels, offering products and services for home repair, maintenance, remodeling, construction, and outdoor living.

Its merchandise includes appliances, tools, hardware, lumber, building materials, plumbing and electrical supplies, paint, flooring, kitchen and bath products, lighting, home décor, lawn and garden equipment, and seasonal goods.

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