Zacks Investment Research lowered shares of Home Depot, Inc. (The) (NYSE:HD) from a buy rating to a hold rating in a research report released on Wednesday, August 30th.
According to Zacks, “Home Depot’s spectacular past performance has helped it to surpass the industry in the past year. The company has been consistently gaining from its interconnected strategy, focus on Pro customers, and housing market recovery. These factors helped the company post a stellar second-quarter fiscal 2017 performance, which marked its highest ever quarterly sales and earnings. Notably, sales marked its 13th straight beat, while earnings retained its 5-year long trend of positive surprise. Results were driven by solid growth across all regions, both in stores and online. Also, Pro category sales continued to outperform, driven by constant efforts to enrich customers’ experiences. The sturdy first half and expectations of improved home prices encouraged the company to raise its fiscal 2017 view. However, gross margin remained plateaued, and is likely to fall 10 bps in fiscal 2017. Also, competition from online retailers may impact results.”
A number of other equities analysts also recently weighed in on HD. UBS AG reaffirmed a buy rating and issued a $175.00 target price (up from $173.00) on shares of Home Depot, Inc. (The) in a research note on Wednesday, May 17th. Jefferies Group LLC reissued a buy rating and set a $182.00 price target on shares of Home Depot, Inc. (The) in a research note on Thursday, August 10th. Stifel Nicolaus reissued a buy rating and set a $178.00 price target on shares of Home Depot, Inc. (The) in a research note on Wednesday, August 16th. Telsey Advisory Group reissued an outperform rating on shares of Home Depot, Inc. (The) in a research note on Friday, August 11th. Finally, Wedbush reissued a market perform rating on shares of Home Depot, Inc. (The) in a research note on Wednesday, August 16th. Two investment analysts have rated the stock with a sell rating, five have issued a hold rating, nineteen have assigned a buy rating and one has issued a strong buy rating to the company. Home Depot, Inc. (The) currently has an average rating of Buy and an average price target of $169.86.
Shares of Home Depot, Inc. (NYSE:HD) opened at 158.40 on Wednesday. The firm has a 50-day moving average price of $152.78 and a 200-day moving average price of $151.82. Home Depot, Inc. has a one year low of $119.20 and a one year high of $161.38. The stock has a market cap of $186.72 billion, a price-to-earnings ratio of 22.80 and a beta of 1.07.
Home Depot, Inc. (The) (NYSE:HD) last announced its quarterly earnings results on Tuesday, August 15th. The home improvement retailer reported $2.25 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.21 by $0.04. Home Depot, Inc. (The) had a net margin of 8.63% and a return on equity of 192.30%. The firm had revenue of $28.11 billion during the quarter, compared to the consensus estimate of $27.84 billion. During the same period last year, the firm posted $1.97 EPS. The firm’s quarterly revenue was up 6.2% on a year-over-year basis. Analysts anticipate that Home Depot, Inc. will post $7.33 earnings per share for the current fiscal year.
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The business also recently disclosed a quarterly dividend, which was paid on Thursday, September 14th. Stockholders of record on Thursday, August 31st were given a $0.89 dividend. This represents a $3.56 annualized dividend and a dividend yield of 2.25%. The ex-dividend date was Tuesday, August 29th. Home Depot, Inc. (The)’s payout ratio is presently 51.15%.
In other Home Depot, Inc. (The) news, EVP Ann Marie Campbell sold 10,717 shares of the stock in a transaction dated Wednesday, August 16th. The shares were sold at an average price of $152.40, for a total transaction of $1,633,270.80. Following the sale, the executive vice president now directly owns 64,810 shares in the company, valued at $9,877,044. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, EVP Matt Carey sold 32,000 shares of the stock in a transaction dated Thursday, September 7th. The stock was sold at an average price of $157.10, for a total transaction of $5,027,200.00. Following the sale, the executive vice president now owns 62,483 shares in the company, valued at $9,816,079.30. The disclosure for this sale can be found here. Insiders sold 57,717 shares of company stock worth $8,916,321 over the last 90 days. 0.26% of the stock is currently owned by corporate insiders.
Institutional investors have recently made changes to their positions in the business. American Beacon Advisors Inc. acquired a new stake in Home Depot, Inc. (The) during the first quarter worth about $100,000. Jacobi Capital Management LLC boosted its stake in shares of Home Depot, Inc. (The) by 16.4% in the 2nd quarter. Jacobi Capital Management LLC now owns 717 shares of the home improvement retailer’s stock valued at $108,000 after purchasing an additional 101 shares in the last quarter. Riggs Asset Managment Co. Inc. boosted its stake in shares of Home Depot, Inc. (The) by 114.1% in the 1st quarter. Riggs Asset Managment Co. Inc. now owns 745 shares of the home improvement retailer’s stock valued at $109,000 after purchasing an additional 397 shares in the last quarter. CT Financial Advisors LLC boosted its stake in shares of Home Depot, Inc. (The) by 0.4% in the 1st quarter. CT Financial Advisors LLC now owns 758 shares of the home improvement retailer’s stock valued at $111,000 after purchasing an additional 3 shares in the last quarter. Finally, University of Texas Investment Managment Co. acquired a new stake in shares of Home Depot, Inc. (The) in the 1st quarter valued at approximately $132,000. Hedge funds and other institutional investors own 71.45% of the company’s stock.
Home Depot, Inc. (The) Company Profile
The Home Depot, Inc (The Home Depot) is a home improvement retailer. The Company sells an assortment of building materials, home improvement products, and lawn and garden products, and provides various services. The Home Depot stores serves three primary customer groups: do-it-yourself (DIY) customers, do-it-for-me (DIFM) customers and professional customers.
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