The Home Depot Inc. (HD) Upgraded to “Buy” by Zacks Investment Research
Zacks Investment Research upgraded shares of The Home Depot Inc. (NYSE:HD) from a hold rating to a buy rating in a research report released on Tuesday. They currently have $144.00 price target on the home improvement retailer’s stock.
According to Zacks, “In response to the evolving retail environment, Home Depot remains keen on building its interconnected capabilities, which is expected to boost its top line, and enhance market share. The company has been gaining from its focus on improving customer experience, solid execution and consistent housing market recovery. These factors also helped its to post its highest quarterly sales and earnings, in the last reported quarter, following which it raised its fiscal 2016 earnings view. Further, Home Depot is on track to achieve its long-term dividend payout, share repurchase and return on investment targets. However, intense competition from specialty stores and mass retailers as well as the impact of soft economic recovery on discretionary spending may prove to be deterrents. Nevertheless, Home Depot's splendid earnings surprise history depicts its inherent strength. Also, estimates have been stable ahead of its third-quarter earnings release.”
Other research analysts also recently issued reports about the stock. Deutsche Bank AG reissued a buy rating and set a $143.00 price objective on shares of The Home Depot in a research report on Friday, June 17th. Argus lifted their target price on shares of The Home Depot from $150.00 to $154.00 and gave the company a buy rating in a report on Wednesday, August 17th. Royal Bank Of Canada lifted their target price on shares of The Home Depot from $150.00 to $155.00 and gave the company an outperform rating in a report on Wednesday, August 17th. Jefferies Group reaffirmed a buy rating and issued a $156.00 target price on shares of The Home Depot in a report on Wednesday, June 15th. Finally, Wedbush reaffirmed a neutral rating and issued a $140.00 target price (down previously from $145.00) on shares of The Home Depot in a report on Tuesday, August 16th. Seven equities research analysts have rated the stock with a hold rating and nineteen have given a buy rating to the company’s stock. The Home Depot presently has a consensus rating of Buy and a consensus price target of $146.86.
The Home Depot (NYSE:HD) opened at 128.31 on Tuesday. The company has a 50-day moving average of $130.34 and a 200-day moving average of $132.54. The company has a market cap of $158.54 billion, a P/E ratio of 21.72 and a beta of 0.97. The Home Depot has a 52 week low of $109.62 and a 52 week high of $139.00.
The Home Depot (NYSE:HD) last announced its quarterly earnings results on Tuesday, August 16th. The home improvement retailer reported $1.97 EPS for the quarter, hitting the Thomson Reuters’ consensus estimate of $1.97. The Home Depot had a net margin of 8.08% and a return on equity of 110.52%. The firm had revenue of $26.47 billion for the quarter, compared to analyst estimates of $26.47 billion. During the same period last year, the business earned $1.71 EPS. The Home Depot’s revenue for the quarter was up 6.6% compared to the same quarter last year. On average, equities research analysts predict that The Home Depot will post $6.33 EPS for the current year.
The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 15th. Shareholders of record on Thursday, September 1st were paid a dividend of $0.69 per share. The ex-dividend date of this dividend was Tuesday, August 30th. This represents a $2.76 annualized dividend and a yield of 2.15%. The Home Depot’s dividend payout ratio is currently 46.54%.
In other news, EVP Matt Carey sold 29,357 shares of the company’s stock in a transaction on Wednesday, August 17th. The shares were sold at an average price of $136.26, for a total value of $4,000,184.82. Following the completion of the transaction, the executive vice president now directly owns 88,872 shares in the company, valued at $12,109,698.72. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Carol B. Tome sold 97,610 shares of the company’s stock in a transaction on Monday, August 22nd. The shares were sold at an average price of $135.35, for a total transaction of $13,211,513.50. Following the completion of the transaction, the chief financial officer now owns 644,831 shares of the company’s stock, valued at $87,277,875.85. The disclosure for this sale can be found here. Company insiders own 0.26% of the company’s stock.
Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Brookfield Asset Management Inc. increased its position in shares of The Home Depot by 16.1% in the second quarter. Brookfield Asset Management Inc. now owns 813 shares of the home improvement retailer’s stock valued at $104,000 after buying an additional 113 shares during the period. Valley National Advisers Inc. boosted its stake in The Home Depot by 17.6% in the second quarter. Valley National Advisers Inc. now owns 855 shares of the home improvement retailer’s stock valued at $109,000 after buying an additional 128 shares in the last quarter. First PREMIER Bank boosted its stake in The Home Depot by 29.2% in the second quarter. First PREMIER Bank now owns 885 shares of the home improvement retailer’s stock valued at $113,000 after buying an additional 200 shares in the last quarter. Genovese Burford & Brothers Wealth & Retirement Plan Management LLC boosted its stake in The Home Depot by 35.3% in the second quarter. Genovese Burford & Brothers Wealth & Retirement Plan Management LLC now owns 917 shares of the home improvement retailer’s stock valued at $117,000 after buying an additional 239 shares in the last quarter. Finally, Invictus RG boosted its stake in The Home Depot by 215.7% in the second quarter. Invictus RG now owns 944 shares of the home improvement retailer’s stock valued at $121,000 after buying an additional 645 shares in the last quarter. Institutional investors and hedge funds own 71.86% of the company’s stock.
The Home Depot 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 serve three primary customer groups: do-it-yourself (DIY) customers, do-it-for-me (DIFM) customers and professional customers.
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