Traders Buy Home Depot (HD) on Weakness

Investors bought shares of Home Depot Inc (NYSE:HD) on weakness during trading on Wednesday. $379.20 million flowed into the stock on the tick-up and $344.88 million flowed out of the stock on the tick-down, for a money net flow of $34.32 million into the stock. Of all stocks tracked, Home Depot had the 26th highest net in-flow for the day. Home Depot traded down ($3.65) for the day and closed at $183.06

Several brokerages recently commented on HD. BMO Capital Markets boosted their price objective on shares of Home Depot from $191.00 to $213.00 and gave the company an “outperform” rating in a research note on Thursday. Telsey Advisory Group reaffirmed an “outperform” rating and set a $217.00 price objective (down previously from $220.00) on shares of Home Depot in a research note on Wednesday. SunTrust Banks boosted their price objective on shares of Home Depot to $187.00 and gave the company a “hold” rating in a research note on Thursday. Zacks Investment Research cut shares of Home Depot from a “buy” rating to a “hold” rating in a research note on Thursday. Finally, Argus reaffirmed a “buy” rating and set a $215.00 price objective (up previously from $190.00) on shares of Home Depot in a research note on Wednesday. Two analysts have rated the stock with a sell rating, six have assigned a hold rating, twenty-two have assigned a buy rating and one has given a strong buy rating to the stock. Home Depot currently has an average rating of “Buy” and a consensus price target of $193.38.

The company has a debt-to-equity ratio of 16.69, a current ratio of 1.17 and a quick ratio of 0.39. The stock has a market capitalization of $217,040.00, a P/E ratio of 25.19, a P/E/G ratio of 1.41 and a beta of 1.08.

Home Depot (NYSE:HD) last announced its quarterly earnings data on Tuesday, February 20th. The home improvement retailer reported $1.69 earnings per share for the quarter, topping the Zacks’ consensus estimate of $1.62 by $0.07. The firm had revenue of $23.88 billion during the quarter, compared to analyst estimates of $23.65 billion. Home Depot had a net margin of 8.55% and a return on equity of 306.73%. The business’s quarterly revenue was up 7.5% on a year-over-year basis. During the same period in the previous year, the business posted $1.44 EPS. analysts anticipate that Home Depot Inc will post 9.43 EPS for the current year.

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, March 22nd. Stockholders of record on Thursday, March 8th will be issued a $1.03 dividend. This represents a $4.12 dividend on an annualized basis and a dividend yield of 2.21%. This is a positive change from Home Depot’s previous quarterly dividend of $0.89. The ex-dividend date is Wednesday, March 7th. Home Depot’s payout ratio is presently 48.11%.

Home Depot announced that its Board of Directors has authorized a share buyback program on Wednesday, December 6th that allows the company to repurchase $15.00 billion in shares. This repurchase authorization allows the home improvement retailer to purchase shares of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s board believes its stock is undervalued.

In other news, EVP Matt Carey sold 41,396 shares of the business’s stock in a transaction that occurred on Friday, December 8th. The shares were sold at an average price of $183.03, for a total value of $7,576,709.88. Following the completion of the sale, the executive vice president now directly owns 29,559 shares in the company, valued at approximately $5,410,183.77. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Insiders own 0.26% of the company’s stock.

Institutional investors and hedge funds have recently made changes to their positions in the company. Jennison Associates LLC raised its holdings in Home Depot by 65.4% during the 4th quarter. Jennison Associates LLC now owns 8,227,834 shares of the home improvement retailer’s stock valued at $1,559,421,000 after buying an additional 3,254,382 shares during the last quarter. Janus Henderson Group PLC raised its holdings in Home Depot by 2,013.2% during the 2nd quarter. Janus Henderson Group PLC now owns 3,319,727 shares of the home improvement retailer’s stock valued at $509,247,000 after buying an additional 3,162,631 shares during the last quarter. Capital International Investors raised its holdings in Home Depot by 132.5% during the 3rd quarter. Capital International Investors now owns 3,268,036 shares of the home improvement retailer’s stock valued at $534,520,000 after buying an additional 1,862,134 shares during the last quarter. APG Asset Management N.V. raised its holdings in Home Depot by 66.3% during the 4th quarter. APG Asset Management N.V. now owns 3,727,680 shares of the home improvement retailer’s stock valued at $588,364,000 after buying an additional 1,485,500 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership raised its holdings in Home Depot by 46.0% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 4,059,019 shares of the home improvement retailer’s stock valued at $769,306,000 after buying an additional 1,279,244 shares during the last quarter. Hedge funds and other institutional investors own 70.36% of the company’s stock.

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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 serves three primary customer groups: do-it-yourself (DIY) customers, do-it-for-me (DIFM) customers and professional customers.

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