The Home Depot Inc. (HD) Rating Lowered to Hold at Zacks Investment Research
The Home Depot Inc. (NYSE:HD) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Tuesday.
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.”
Several other equities analysts also recently weighed in on HD. Stifel Nicolaus initiated coverage on shares of The Home Depot in a report on Tuesday, August 2nd. They set a “buy” rating and a $157.00 target price for the company. Wedbush restated a “neutral” rating and set a $140.00 target price (down from $145.00) on shares of The Home Depot in a report on Tuesday, August 16th. JPMorgan Chase & Co. restated a “buy” rating and set a $142.00 target price on shares of The Home Depot in a report on Tuesday, August 16th. Nomura restated an “in-line” rating and set a $155.00 target price on shares of The Home Depot in a report on Wednesday, August 17th. Finally, 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 report on Wednesday, August 17th. Eight analysts have rated the stock with a hold rating and eighteen have given a buy rating to the company. The stock has a consensus rating of “Buy” and an average price target of $146.86.
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The Home Depot (NYSE:HD) opened at 126.02 on Tuesday. The firm has a market capitalization of $155.71 billion, a price-to-earnings ratio of 21.33 and a beta of 0.97. The Home Depot has a 12-month low of $109.62 and a 12-month high of $139.00. The firm has a 50-day moving average of $128.79 and a 200 day moving average of $132.32.
The Home Depot (NYSE:HD) last announced its quarterly earnings data on Tuesday, August 16th. The home improvement retailer reported $1.97 EPS for the quarter, hitting the Zacks’ consensus estimate of $1.97. The company earned $26.47 billion during the quarter, compared to the consensus estimate of $26.47 billion. The Home Depot had a net margin of 8.08% and a return on equity of 110.52%. The Home Depot’s quarterly revenue was up 6.6% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.71 EPS. On average, equities analysts predict that The Home Depot will post $6.33 EPS for the current year.
In other The Home Depot news, EVP Timothy M. Crow sold 49,392 shares of The Home Depot stock in a transaction on Friday, August 19th. The shares were sold at an average price of $135.06, for a total value of $6,670,883.52. Following the completion of the transaction, the executive vice president now owns 224,905 shares of the company’s stock, valued at $30,375,669.30. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CFO Carol B. Tome sold 97,610 shares of The Home Depot stock in a transaction on Monday, August 22nd. The stock was 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 directly owns 644,831 shares of the company’s stock, valued at approximately $87,277,875.85. The disclosure for this sale can be found here. 0.26% of the stock is currently owned by corporate insiders.
Institutional investors have recently added to or reduced their stakes in the company. Edge Wealth Management LLC increased its position in The Home Depot by 0.3% in the third quarter. Edge Wealth Management LLC now owns 1,068 shares of the home improvement retailer’s stock worth $137,000 after buying an additional 3 shares in the last quarter. Jackson Grant Investment Advisers Inc. increased its position in shares of The Home Depot by 0.5% in the second quarter. Jackson Grant Investment Advisers Inc. now owns 1,701 shares of the home improvement retailer’s stock valued at $217,000 after buying an additional 9 shares during the period. Piershale Financial Group Inc. increased its position in shares of The Home Depot by 0.5% in the second quarter. Piershale Financial Group Inc. now owns 2,258 shares of the home improvement retailer’s stock valued at $288,000 after buying an additional 12 shares during the period. Boothbay Fund Management LLC increased its position in shares of The Home Depot by 0.6% in the first quarter. Boothbay Fund Management LLC now owns 2,363 shares of the home improvement retailer’s stock valued at $315,000 after buying an additional 14 shares during the period. Finally, Beese Fulmer Investment Management Inc. increased its position in shares of The Home Depot by 0.5% in the second quarter. Beese Fulmer Investment Management Inc. now owns 3,676 shares of the home improvement retailer’s stock valued at $469,000 after buying an additional 19 shares during the period. 71.87% of the stock is owned by hedge funds and other institutional investors.
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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