Analysts Blast Lowe's Stock After Buyback Buzz

Loop Capital said Lowe's stock is "attractively priced"

Digital Content Manager
Dec 13, 2018 at 10:27 AM
facebook twitter linkedin


The shares of Lowe's Companies, Inc. (NYSE:LOW) rallied nearly 3% yesterday -- and today, are up 0.4% at $92.46 -- after the company unveiled a new share buyback program at its annual analyst day. The brokerage bunch was quick to chime in, too. RBC and Stifel raised their respective price targets to $105 and $96, while Loop Capital reiterated its "buy" rating, saying the "shares of Lowe's are attractively priced." SunTrust Robinson, however, slashed its target price to a still lofty $128 from $138.

Analysts are generally optimistic about the home improvement retailer, with a majority 20 of 24 analysts calling LOW a "buy" or better, and not one "sell" rating on the books. Plus, the average 12-month price target of $111.54 is a 20.8% premium to current trading levels.

This week's upside has LOW within striking distance of its year-to-date breakeven mark of $92.94. However, the shares are still well off their all-time high of $117.70 from Sept. 28. Since this peak, the stock has shed 21% under pressure from its 30-day moving average, with a recent rally halted by its 200-day moving average. 

Traders have been growing increasingly skeptical in recent months. The equity sports a 50-day put/call volume ratio of 1.11 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits in the 96th percentile of its annual range. This indicates that in the past two weeks, traders have bought to open puts over calls at a quicker-than-usual clip.

 

 

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Best stocks for October and worst stocks for October
 


 


 
Special Offers from Schaeffer's Trading Partners