The Home Depot Inc. (NYSE:HD) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Tuesday. The firm currently has a $144.00 target price on the home improvement retailer’s stock. Zacks Investment Research’s price target indicates a potential upside of 12.87% from the company’s current price.
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 equities analysts also recently issued research reports about the stock. Deutsche Bank AG reissued a “buy” rating and issued a $143.00 target price on shares of The Home Depot in a research note on Friday, June 17th. Argus raised their target price on shares of The Home Depot from $150.00 to $154.00 and gave the company a “buy” rating in a research note on Wednesday, August 17th. Royal Bank Of Canada lifted their price target on shares of The Home Depot from $150.00 to $155.00 and gave the stock an “outperform” rating in a research note on Wednesday, August 17th. Jefferies Group reaffirmed a “buy” rating and set a $156.00 price target on shares of The Home Depot in a research note on Wednesday, June 15th. Finally, Wedbush reaffirmed a “neutral” rating and set a $140.00 price target (down previously from $145.00) on shares of The Home Depot in a research note on Tuesday, August 16th. Seven analysts have rated the stock with a hold rating and nineteen have assigned a buy rating to the stock. The Home Depot presently has a consensus rating of “Buy” and an average target price of $146.86.
Shares of The Home Depot (NYSE:HD) opened at 127.58 on Tuesday. The stock’s 50 day moving average is $130.70 and its 200 day moving average is $132.58. The firm has a market cap of $157.63 billion, a P/E ratio of 21.59 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 issued its earnings results on Tuesday, August 16th. The home improvement retailer reported $1.97 EPS for the quarter, meeting the Zacks’ consensus estimate of $1.97. The Home Depot had a net margin of 8.08% and a return on equity of 110.52%. The business had revenue of $26.47 billion for the quarter, compared to the consensus estimate of $26.47 billion. During the same quarter last year, the firm posted $1.71 EPS. The business’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 earnings per share for the current fiscal year.
The firm also recently announced a quarterly dividend, which was paid on Thursday, September 15th. Investors of record on Thursday, September 1st were issued a $0.69 dividend. The ex-dividend date was Tuesday, August 30th. This represents a $2.76 dividend on an annualized basis and a dividend yield of 2.16%. The Home Depot’s payout ratio is currently 46.54%.
In related news, CFO Carol B. Tome sold 97,610 shares of the business’s stock in a transaction that occurred on Monday, August 22nd. The shares were sold at an average price of $135.35, for a total value of $13,211,513.50. Following the sale, the chief financial officer now directly owns 644,831 shares in the company, valued at approximately $87,277,875.85. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Matt Carey sold 29,357 shares of the business’s stock in a transaction that occurred on Wednesday, August 17th. The stock was sold at an average price of $136.26, for a total transaction of $4,000,184.82. Following the completion of the sale, the executive vice president now owns 88,872 shares in the company, valued at $12,109,698.72. The disclosure for this sale can be found here. 0.26% of the stock is currently owned by corporate insiders.
Several hedge funds have recently added to or reduced their stakes in the company. Brookfield Asset Management Inc. raised its stake in 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 worth $104,000 after buying an additional 113 shares in the last quarter. Valley National Advisers Inc. raised 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 worth $109,000 after buying an additional 128 shares in the last quarter. First PREMIER Bank raised 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 worth $113,000 after buying an additional 200 shares in the last quarter. Genovese Burford & Brothers Wealth & Retirement Plan Management LLC raised 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 worth $117,000 after buying an additional 239 shares in the last quarter. Finally, Invictus RG raised 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 worth $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.
About The 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 serve three primary customer groups: do-it-yourself (DIY) customers, do-it-for-me (DIFM) customers and professional customers.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for The Home Depot Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for The Home Depot Inc. and related companies with MarketBeat.com's FREE daily email newsletter.