Home Depot (HD) to Repurchase $15.00 billion in Shares

Home Depot (NYSE:HD) announced that its Board of Directors has approved a share repurchase plan, which permits the company to repurchase $15.00 billion in outstanding shares on Wednesday, December 6th, EventVestor reports. This repurchase authorization permits the home improvement retailer to repurchase shares of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s board of directors believes its stock is undervalued.

Home Depot (HD) traded down $3.17 during midday trading on Wednesday, reaching $179.68. The company’s stock had a trading volume of 2,697,919 shares, compared to its average volume of 4,448,647. The company has a quick ratio of 0.39, a current ratio of 1.23 and a debt-to-equity ratio of 9.54. Home Depot has a 12-month low of $128.68 and a 12-month high of $186.31. The company has a market capitalization of $215,916.78, a PE ratio of 25.68, a PEG ratio of 1.87 and a beta of 1.11.

Home Depot (NYSE:HD) last announced its quarterly earnings results on Tuesday, November 14th. The home improvement retailer reported $1.84 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.81 by $0.03. The company had revenue of $25.03 billion during the quarter, compared to the consensus estimate of $24.53 billion. Home Depot had a net margin of 8.66% and a return on equity of 238.88%. The company’s revenue for the quarter was up 8.1% compared to the same quarter last year. During the same period in the prior year, the business earned $1.60 earnings per share. equities research analysts expect that Home Depot will post 7.38 earnings per share for the current year.

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 14th. Investors of record on Thursday, November 30th will be issued a $0.89 dividend. The ex-dividend date of this dividend is Wednesday, November 29th. This represents a $3.56 dividend on an annualized basis and a yield of 1.98%. Home Depot’s payout ratio is 49.44%.

HD has been the topic of a number of recent research reports. Moffett Nathanson initiated coverage on Home Depot in a research report on Monday. They issued a “buy” rating on the stock. Telsey Advisory Group lifted their target price on Home Depot from $180.00 to $190.00 and gave the company an “outperform” rating in a research report on Monday. Robert W. Baird reaffirmed an “outperform” rating and issued a $195.00 target price on shares of Home Depot in a research report on Thursday, November 30th. Credit Suisse Group reaffirmed an “outperform” rating and issued a $183.00 target price (up previously from $175.00) on shares of Home Depot in a research report on Wednesday, November 29th. Finally, Atlantic Securities raised Home Depot from a “neutral” rating to an “overweight” rating and lifted their target price for the company from $174.16 to $174.95 in a research report on Tuesday, November 28th. Two analysts have rated the stock with a sell rating, five have issued a hold rating, twenty have issued a buy rating and one has issued a strong buy rating to the company. The stock presently has a consensus rating of “Buy” and a consensus target price of $177.22.

In related news, EVP Matt Carey sold 32,000 shares of the stock in a transaction on Thursday, September 7th. The stock was sold at an average price of $157.10, for a total value of $5,027,200.00. Following the completion of the sale, the executive vice president now directly owns 62,483 shares in the company, valued at $9,816,079.30. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 0.26% of the company’s stock.

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About Home Depot

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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