Spotlight on Lowe's Companies: Analyzing the Surge in Options Activity

Deep-pocketed investors have adopted a bearish approach towards Lowe's Companies LOW, and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in LOW usually suggests something big is about to happen.

We gleaned this information from our observations today when Benzinga's options scanner highlighted 14 extraordinary options activities for Lowe's Companies. This level of activity is out of the ordinary.

The general mood among these heavyweight investors is divided, with 42% leaning bullish and 57% bearish. Among these notable options, 3 are puts, totaling $104,369, and 11 are calls, amounting to $476,411.

Expected Price Movements

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $210.0 to $280.0 for Lowe's Companies over the last 3 months.

Analyzing Volume & Open Interest

In today's trading context, the average open interest for options of Lowe's Companies stands at 739.75, with a total volume reaching 611.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Lowe's Companies, situated within the strike price corridor from $210.0 to $280.0, throughout the last 30 days.

Lowe's Companies Call and Put Volume: 30-Day Overview

Largest Options Trades Observed:

About Lowe's Companies

Lowe's is the second-largest home improvement retailer in the world, operating more than 1,700 stores in the United States, after the 2023 divestiture of its Canadian locations (RONA, Lowe's Canada, Réno-Dépôt, and Dick's Lumber). The firm's stores offer products and services for home decorating, maintenance, repair, and remodeling, with maintenance and repair accounting for two thirds of products sold. Lowe's targets retail do-it-yourself (around 75% of sales) and do-it-for-me customers as well as commercial and professional business clients (around 25% of sales). We estimate Lowe's captures a high-single-digit share of the domestic home improvement market, based on U.S. Census data and management's market size estimates.

In light of the recent options history for Lowe's Companies, it's now appropriate to focus on the company itself. We aim to explore its current performance.

Present Market Standing of Lowe's Companies

• Currently trading with a volume of 1,832,158, the LOW's price is up by 0.81%, now at $254.0.
• RSI readings suggest the stock is currently may be overbought.
• Anticipated earnings release is in 61 days.

Professional Analyst Ratings for Lowe's Companies

5 market experts have recently issued ratings for this stock, with a consensus target price of $252.4.

• An analyst from RBC Capital has decided to maintain their Sector Perform rating on Lowe's Companies, which currently sits at a price target of $246.
• An analyst from DA Davidson downgraded its action to Buy with a price target of $258.
• An analyst from UBS persists with their Buy rating on Lowe's Companies, maintaining a target price of $270.
• An analyst from Truist Securities has decided to maintain their Buy rating on Lowe's Companies, which currently sits at a price target of $258.
• In a cautious move, an analyst from Oppenheimer downgraded its rating to Perform, setting a price target of $230.

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.

If you want to stay updated on the latest options trades for Lowe's Companies, Benzinga Pro gives you real-time options trades alerts.