Lowe's Denies Reports of HD Supply Buyout

Bloomberg News reported yesterday that Lowe's was in talks to buy HD Supply

Deputy Editor
Nov 10, 2020 at 11:02 AM
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A Bloomberg report that Lowe's Companies Inc (NYSE:LOW) is in talks to buy construction materials distributor HD Supply Holdings (HDS) is being denied by the company. The report, which came out yesterday, mentioned other potential buyers for HDS, and sent the stock soaring. Lowe's, meanwhile, saw a sharp drop, though it looks to be recuperating today, up 0.8% at $154.69 at last check. 

Now, the security is still looking up at its 100-day moving average -- a  former point of support that the security dropped south of during yesterday's session. A floor at the 120-day moving average has moved in however, keeping it at a 29% lead for the year. 

Analysts are mostly optimistic over LOW, with 16 of the 21 in coverage calling it a "buy" or better. Plus, the 12-month consensus price target of $185.04 is a hefty 19.7% premium to current levels, and represents a level not yet touched by the equity. 

A look at today's options trading shows bulls picking up the pace today, with 4,493 calls across the tape -- double the intraday average -- compared to just 950 puts. Most popular is the November 180 call, followed by the weekly 11/13 160 call. This suggests investors could be speculating on more upside for the equity in the coming weeks. 

 

 

 

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