Lowe’s Companies, Inc. (NYSE:LOW) announced that it has been notified of an unsolicited “mini-tender” offer dated February 10, 2016, made byTRC Capital Corporation, a private Canadian investment company, to purchase up to 2,000,000 shares ofLowe’s common stock, less than one fourth of one percent of the outstanding shares. TRC Capital’s unsolicited “mini-tender” offer price of $61.25 per share is approximately 4.5 percent below the $64.15 per share closing price of Lowe’s common stock on February 9, 2016, the last trading day prior to the commencement of the offer. Lowe’s is not affiliated in any way with TRC Capital, the offer or the offer documentation.
TRC Capital has made many similar “mini-tender” offers for the shares of other companies. “Mini-tender” offers seek to purchase less than five percent of a company’s outstanding shares, thereby avoiding many disclosure and procedural rules of the United States Securities and Exchange Commission (the “SEC”) because the offers are below the SEC’s threshold for requiring such disclosure and procedural protections for investors.
The SEC has cautioned investors about “mini-tender” offers in an investor alert. The SEC noted that these offers “have been increasingly used to catch investors off guard” and that many investors who hear about “mini-tender” offers “surrender their securities without investigating the offer, assuming that the price offered includes the premium usually present in larger, traditional tender offers.”
To read more about the risks of “mini-tender” offers, please review the alert on the SEC’s website.
Shareholders should consult their financial advisors and should exercise caution with respect to TRC Capital’s offer. Shareholders who have already tendered should consider the advisability of withdrawing their shares as permitted under TRC Capital’s Offer to Purchase documents.
According to the offer documents, the offer is currently scheduled to expire at 12:01 a.m., New York Citytime, on Thursday, March 10, 2016. (Original Source)
Shares of Lowe’s Companies closed last Friday at $64.87. LOW has a 1-year high of $78.13 and a 1-year low of $62.62. The stock’s 50-day moving average is $70.26 and its 200-day moving average is $71.32.
On the ratings front, LOW has been the subject of a number of recent research reports. In a report issued on February 12, Oppenheimer analyst Brian Nagel maintained a Buy rating on LOW, with a price target of $77, which implies an upside of 18.7% from current levels. Separately, on February 4, Deutsche Bank’s Michael Baker maintained a Buy rating on the stock and has a price target of $80.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Brian Nagel and Michael Baker have a total average return of 4.1% and -6.1% respectively. Nagel has a success rate of 51.8% and is ranked #255 out of 3578 analysts, while Baker has a success rate of 37.3% and is ranked #3138.
The street is mostly Bullish on LOW stock. Out of 8 analysts who cover the stock, 7 suggest a Buy rating and one recommends to Hold the stock. The 12-month average price target assigned to the stock is $84.80, which represents a potential upside of 30.7% from where the stock is currently trading.
Lowe’s Companies Inc is a home improvement retailer, which serves home-owners, renters and Commercial Business Customers.