Decoding Lowe's Companies's Options Activity: What's the Big Picture?

Investors with a lot of money to spend have taken a bearish stance on Lowe's Companies (NYSE:LOW).

And retail traders should know.

We noticed this today when the positions showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with LOW, it often means somebody knows something is about to happen.

Today, Benzinga's options scanner spotted 8 options trades for Lowe's Companies.

This isn't normal.

The overall sentiment of these big-money traders is split between 25% bullish and 75%, bearish.

Out of all of the options we uncovered, there was 1 put, for a total amount of $63,700, and 7, calls, for a total amount of $534,064.

What's The Price Target?

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $230.0 to $245.0 for Lowe's Companies over the recent three months.

Volume & Open Interest Development

Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for Lowe's Companies's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Lowe's Companies's significant trades, within a strike price range of $230.0 to $245.0, over the past month.

Lowe's Companies Option Volume And Open Interest Over Last 30 Days

Biggest Options Spotted:

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.

After a thorough review of the options trading surrounding Lowe's Companies, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Where Is Lowe's Companies Standing Right Now?

• With a trading volume of 3,143,435, the price of LOW is down by -1.53%, reaching $240.7.
• Current RSI values indicate that the stock is is currently neutral between overbought and oversold.
• Next earnings report is scheduled for 48 days from now.

Expert Opinions on Lowe's Companies

5 market experts have recently issued ratings for this stock, with a consensus target price of $248.2.

• An analyst from Evercore ISI Group has decided to maintain their In-Line rating on Lowe's Companies, which currently sits at a price target of $270.
• In a cautious move, an analyst from Gordon Haskett downgraded its rating to Hold, setting a price target of $245.
• Consistent in their evaluation, an analyst from Loop Capital keeps a Hold rating on Lowe's Companies with a target price of $225.
• Maintaining their stance, an analyst from Telsey Advisory Group continues to hold a Market Perform rating for Lowe's Companies, targeting a price of $230.
• An analyst from Truist Securities persists with their Buy rating on Lowe's Companies, maintaining a target price of $271.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Lowe's Companies options trades with real-time alerts from Benzinga Pro.