Research Analysts’ Weekly Ratings Changes for Home Depot (HD)

A number of firms have modified their ratings and price targets on shares of Home Depot (NYSE: HD) recently:

  • 10/24/2018 – Home Depot was upgraded by analysts at Zacks Investment Research from a “sell” rating to a “hold” rating. According to Zacks, “Home Depot has a five-year long trend of beating earnings estimates, which continued in second-quarter fiscal 2018. Moreover, sales reverted to a positive surprise trend after a miss in the last-reported quarter. Results gained from a rebound in the seasonal business that impacted sales in the fiscal second quarter and the solid execution. Further, its relentless focus on affording innovative products, boosting interconnected customer experience and driving productivity seems to be paying off. Steady housing market recovery and strong customer demand also remain tailwinds. Backed by the solid performance in the first half of fiscal 2018, the company raised the earnings and sales forecast for fiscal 2018. However, the stock has lagged the industry in the past three months. Also, commodity cost inflation in various categories, including rising raw material and transportation costs as well as recently enacted tariffs are likely to pressure margins.”
  • 10/23/2018 – Home Depot had its price target lowered by analysts at Morgan Stanley from $225.00 to $200.00. They now have an “overweight” rating on the stock.
  • 10/22/2018 – Home Depot had its price target lowered by analysts at Wells Fargo & Co from $230.00 to $220.00. They now have an “outperform” rating on the stock. They wrote, “We had the opportunity to host investor meetings in Canada last week with Jeff Kinnaird (President, Muench (VP, the HD Investor Relations team. Conversations were constructive, and focused largely on the macro environment, company initiatives (store improvements, Pro, supply chain, etc.) and LT opportunities/risks. Our takeaways include: 1) Despite a softening U.S. housing backdrop, HD makes a good case for continued growth; 2) in-store productivity initiatives are proving viable offsets to cost pressures, which unlikely abate with wage, transportation and tariff-driven inflation; and 3) Pro opportunities are still early innings, with growth levers from data analytics, a new Pro referral program (for install services), a B2B website and fulfillment improvements.””
  • 10/17/2018 – Home Depot had its “neutral” rating reaffirmed by analysts at Credit Suisse Group AG. They now have a $204.00 price target on the stock, down previously from $222.00.
  • 10/17/2018 – Home Depot was downgraded by analysts at ValuEngine from a “buy” rating to a “hold” rating.
  • 10/16/2018 – Home Depot was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “sell” rating. According to Zacks, “Home Depot has underperformed the industry in the past three months. Further, commodity cost inflation in various categories, including rising raw material and transportation costs as well as recently enacted tariffs are likely to pressure margins. Evidently, gross margin in second-quarter fiscal 2018 included negative impacts from higher transportation and fuel costs in its supply chain. Also, management has slightly trimmed its gross margin forecast for fiscal 2018 due to the higher-than-anticipated transportation costs. Additionally, intense competition from specialty stores and mass retailers may prove to be deterrents. However, it has a five-year long trend of beating earnings estimates. Driven by solid first-half fiscal 2018 performance, the company raised fiscal 2018 guidance. Also, its relentless focus on affording innovative products, boosting interconnected customer experience and driving productivity remains encouraging.”
  • 10/11/2018 – Home Depot had its price target raised by analysts at Morgan Stanley from $210.00 to $225.00. They now have an “overweight” rating on the stock.
  • 10/5/2018 – Home Depot was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $228.00 price target on the stock. According to Zacks, “Home Depot outpaced the broader market in the past year backed by its five-year long trend of beating earnings estimates, which continued in second-quarter fiscal 2018. Moreover, sales reverted to a positive surprise trend after a miss in the last-reported quarter. Results gained from a rebound in the seasonal business that impacted sales in the fiscal first quarter and the solid execution. Further, its relentless focus on affording innovative products, boosting interconnected customer experience and driving productivity seems to be paying off. Steady housing market recovery and strong customer demand also remain tailwinds. Backed by the solid performance in the first half of fiscal 2018, the company raised the earnings and sales forecast for fiscal 2018. However, commodity cost inflation in various categories, including rising raw material and transportation costs as well as recently enacted tariffs are likely to pressure margins.”
  • 9/16/2018 – Home Depot had its “buy” rating reaffirmed by analysts at Wells Fargo & Co. They now have a $230.00 price target on the stock.

Shares of Home Depot stock opened at $182.01 on Wednesday. The company has a current ratio of 1.13, a quick ratio of 0.37 and a debt-to-equity ratio of 11.60. Home Depot Inc has a 12-month low of $162.28 and a 12-month high of $215.43. The company has a market cap of $205.86 billion, a price-to-earnings ratio of 24.40, a P/E/G ratio of 1.42 and a beta of 1.26.

Home Depot (NYSE:HD) last issued its quarterly earnings results on Tuesday, August 14th. The home improvement retailer reported $3.05 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $2.84 by $0.21. Home Depot had a net margin of 9.45% and a return on equity of 522.68%. The business had revenue of $30.46 billion for the quarter, compared to analyst estimates of $30.04 billion. During the same quarter in the prior year, the business posted $0.59 EPS. Home Depot’s revenue for the quarter was up 8.4% compared to the same quarter last year. Research analysts forecast that Home Depot Inc will post 9.57 EPS for the current year.

In other news, EVP William G. Lennie sold 10,854 shares of the stock in a transaction on Wednesday, August 22nd. The shares were sold at an average price of $201.64, for a total value of $2,188,600.56. Following the sale, the executive vice president now owns 40,057 shares in the company, valued at $8,077,093.48. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Matt Carey sold 4,125 shares of the stock in a transaction on Thursday, August 16th. The stock was sold at an average price of $195.43, for a total transaction of $806,148.75. Following the completion of the sale, the executive vice president now owns 60,179 shares in the company, valued at approximately $11,760,781.97. The disclosure for this sale can be found here. 0.25% of the stock is owned by corporate insiders.

A number of hedge funds have recently added to or reduced their stakes in HD. BlackRock Inc. lifted its holdings in Home Depot by 0.8% during the first quarter. BlackRock Inc. now owns 72,237,480 shares of the home improvement retailer’s stock valued at $12,875,610,000 after purchasing an additional 604,634 shares in the last quarter. FMR LLC lifted its holdings in Home Depot by 0.4% during the second quarter. FMR LLC now owns 28,997,912 shares of the home improvement retailer’s stock valued at $5,657,493,000 after purchasing an additional 109,499 shares in the last quarter. Morgan Stanley lifted its holdings in Home Depot by 11.4% during the second quarter. Morgan Stanley now owns 9,687,271 shares of the home improvement retailer’s stock valued at $1,889,985,000 after purchasing an additional 991,466 shares in the last quarter. Fisher Asset Management LLC lifted its holdings in Home Depot by 2.8% during the third quarter. Fisher Asset Management LLC now owns 4,446,106 shares of the home improvement retailer’s stock valued at $921,011,000 after purchasing an additional 119,507 shares in the last quarter. Finally, Swiss National Bank lifted its holdings in Home Depot by 2.9% during the second quarter. Swiss National Bank now owns 4,045,615 shares of the home improvement retailer’s stock valued at $789,299,000 after purchasing an additional 115,600 shares in the last quarter. Institutional investors own 69.27% of the company’s stock.

The Home Depot, Inc operates as a home improvement retailer. It operates The Home Depot stores that sell various building materials, home improvement products, lawn and garden products, and décor products, as well as provide installation, home maintenance, and professional service programs to do-it-yourself and professional customers.

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