Home Depot (NYSE:HD) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Tuesday. The firm currently has a $205.00 price objective on the home improvement retailer’s stock. Zacks Investment Research‘s price target would suggest a potential upside of 9.45% from the stock’s previous close.
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 issued reports on HD. BTIG Research boosted their price target on shares of Home Depot to $215.00 and gave the company a “buy” rating in a report on Thursday, December 7th. Argus boosted their price target on shares of Home Depot from $180.00 to $190.00 and gave the company a “buy” rating in a report on Wednesday, November 15th. Oppenheimer set a $178.00 price target on shares of Home Depot and gave the company a “buy” rating in a report on Tuesday, November 14th. Jefferies Group reissued a “buy” rating and issued a $223.00 price target on shares of Home Depot in a report on Monday. Finally, SunTrust Banks boosted their price target on shares of Home Depot to $167.00 and gave the company a “hold” rating in a report on Wednesday, November 15th. Two investment analysts have rated the stock with a sell rating, five have assigned a hold rating, twenty-three have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. Home Depot presently has an average rating of “Buy” and a consensus target price of $190.32.
Home Depot (NYSE:HD) last announced its quarterly earnings results on Tuesday, November 14th. The home improvement retailer reported $1.84 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.81 by $0.03. Home Depot had a net margin of 8.66% and a return on equity of 238.88%. The company had revenue of $25.03 billion during the quarter, compared to analyst estimates of $24.53 billion. During the same quarter in the previous year, the business earned $1.60 EPS. The firm’s revenue was up 8.1% on a year-over-year basis. equities analysts forecast that Home Depot will post 7.37 earnings per share for the current fiscal year.
Home Depot announced that its Board of Directors has approved a stock repurchase program on Wednesday, December 6th that allows the company to buyback $15.00 billion in outstanding shares. This buyback authorization allows the home improvement retailer to repurchase shares of its stock through open market purchases. Shares buyback programs are generally a sign that the company’s board of directors believes its stock is undervalued.
In other Home Depot news, EVP Matt Carey sold 41,396 shares of the business’s stock in a transaction dated Friday, December 8th. The shares were 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 directly owns 29,559 shares of the company’s stock, valued at approximately $5,410,183.77. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Insiders own 0.26% of the company’s stock.
A number of large investors have recently modified their holdings of HD. Jacobi Capital Management LLC raised its holdings in shares of Home Depot by 16.4% in the 2nd quarter. Jacobi Capital Management LLC now owns 717 shares of the home improvement retailer’s stock valued at $108,000 after purchasing an additional 101 shares during the period. Denali Advisors LLC acquired a new position in Home Depot in the 4th quarter valued at about $133,000. Burt Wealth Advisors grew its stake in Home Depot by 83.5% in the 3rd quarter. Burt Wealth Advisors now owns 870 shares of the home improvement retailer’s stock valued at $142,000 after buying an additional 396 shares during the last quarter. Patriot Financial Group Insurance Agency LLC grew its stake in Home Depot by 63.4% in the 3rd quarter. Patriot Financial Group Insurance Agency LLC now owns 876 shares of the home improvement retailer’s stock valued at $145,000 after buying an additional 340 shares during the last quarter. Finally, Empire Life Investments Inc. grew its stake in Home Depot by 233.4% in the 3rd quarter. Empire Life Investments Inc. now owns 957 shares of the home improvement retailer’s stock valued at $157,000 after buying an additional 670 shares during the last quarter. 70.51% of the stock is currently owned by hedge funds and other institutional investors.
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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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