Zacks Investment Research upgraded shares of Home Depot (NYSE:HD) from a hold rating to a buy rating in a research note released on Tuesday, February 6th. The firm currently has $205.00 price objective on the home improvement retailer’s stock.
According to Zacks, “Home Depot’s five-year long trend of beating earnings estimates led it to outperform the industry in the past year. The company delivered bottom-line beat in third-quarter fiscal 2017, while sales topped estimates for the fifth straight quarter. Further, the company has been gaining from strength in core business and relentless focus on affording innovative products, along with interconnected customer experience and driving productivity. Steady housing market recovery and strong customer demand are also boosting the company’s performance. Further, it raised top and bottom-line guidance for fiscal 2017, based on the solid year-to-date performance and anticipated gains from hurricane recovery activities. While hurricane-related activities aided comps growth, gross margins on such sales were significantly below average. This led to a decline in gross margin, which is likely to continue in fiscal 2017. Of late, estimates have been stable.”
Several other brokerages have also recently issued reports on HD. Jefferies Group reaffirmed a buy rating and set a $223.00 price objective on shares of Home Depot in a report on Monday, February 5th. Robert W. Baird reaffirmed an outperform rating and set a $195.00 price objective on shares of Home Depot in a report on Thursday, November 30th. SunTrust Banks upped their price objective on Home Depot to $167.00 and gave the stock a hold rating in a report on Wednesday, November 15th. Telsey Advisory Group upped their price objective on Home Depot from $180.00 to $190.00 and gave the stock an outperform rating in a report on Monday, December 4th. Finally, Citigroup upped their price objective on Home Depot from $179.00 to $188.00 and gave the stock a buy rating in a report on Thursday, November 16th. Two research analysts have rated the stock with a sell rating, five have given a hold rating, twenty-three have given a buy rating and one has given a strong buy rating to the stock. The company has an average rating of Buy and a consensus target price of $190.32.
Home Depot (NYSE:HD) opened at $183.72 on Tuesday. Home Depot has a 52 week low of $139.34 and a 52 week high of $207.60. The company has a quick ratio of 0.39, a current ratio of 1.23 and a debt-to-equity ratio of 9.54. The firm has a market capitalization of $214,935.88, a P/E ratio of 25.52, a price-to-earnings-growth ratio of 1.34 and a beta of 1.08.
Home Depot (NYSE:HD) last posted its quarterly earnings results on Tuesday, November 14th. The home improvement retailer reported $1.84 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $1.81 by $0.03. Home Depot had a return on equity of 238.88% and a net margin of 8.66%. The business had revenue of $25.03 billion during the quarter, compared to the consensus estimate of $24.53 billion. During the same period in the prior year, the company posted $1.60 EPS. The firm’s revenue for the quarter was up 8.1% compared to the same quarter last year. equities analysts anticipate that Home Depot will post 7.38 earnings per share for the current fiscal year.
Home Depot announced that its board has authorized a stock buyback plan on Wednesday, December 6th that authorizes the company to buyback $15.00 billion in outstanding shares. This buyback authorization authorizes the home improvement retailer to reacquire shares of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s board believes its stock is undervalued.
In related news, EVP Matt Carey sold 41,396 shares of the stock in a transaction on Friday, December 8th. The stock was sold at an average price of $183.03, for a total transaction of $7,576,709.88. Following the sale, the executive vice president now owns 29,559 shares in the company, valued at approximately $5,410,183.77. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 0.26% of the company’s stock.
A number of institutional investors have recently made changes to their positions in HD. Paragon Wealth Strategies LLC grew its position in shares of Home Depot by 0.4% during the 2nd quarter. Paragon Wealth Strategies LLC now owns 1,825 shares of the home improvement retailer’s stock worth $280,000 after buying an additional 7 shares in the last quarter. Jackson Grant Investment Advisers Inc. grew its position in shares of Home Depot by 0.4% during the 2nd quarter. Jackson Grant Investment Advisers Inc. now owns 1,651 shares of the home improvement retailer’s stock worth $253,000 after buying an additional 7 shares in the last quarter. Silicon Valley Capital Partners grew its position in shares of Home Depot by 0.6% during the 2nd quarter. Silicon Valley Capital Partners now owns 1,485 shares of the home improvement retailer’s stock worth $228,000 after buying an additional 9 shares in the last quarter. Mcdaniel Terry & Co. grew its position in shares of Home Depot by 0.5% during the 2nd quarter. Mcdaniel Terry & Co. now owns 1,678 shares of the home improvement retailer’s stock worth $257,000 after buying an additional 9 shares in the last quarter. Finally, Cutter & CO Brokerage Inc. grew its position in shares of Home Depot by 0.3% during the 2nd quarter. Cutter & CO Brokerage Inc. now owns 3,782 shares of the home improvement retailer’s stock worth $580,000 after buying an additional 10 shares in the last quarter. 70.34% of the stock is currently owned by institutional investors.
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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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