Investors Buy Home Depot (HD) on Weakness

Investors bought shares of Home Depot Inc (NYSE:HD) on weakness during trading hours on Thursday. $314.45 million flowed into the stock on the tick-up and $169.03 million flowed out of the stock on the tick-down, for a money net flow of $145.42 million into the stock. Of all companies tracked, Home Depot had the 2nd highest net in-flow for the day. Home Depot traded down ($2.53) for the day and closed at $209.45

Several research firms recently weighed in on HD. Citigroup reiterated a “buy” rating and set a $227.00 price objective on shares of Home Depot in a research note on Wednesday, August 15th. Jefferies Financial Group began coverage on shares of Home Depot in a research note on Tuesday, August 21st. They set a “buy” rating and a $228.00 price objective on the stock. ValuEngine upgraded shares of Home Depot from a “hold” rating to a “buy” rating in a research note on Monday, July 2nd. UBS Group increased their price objective on shares of Home Depot from $212.00 to $225.00 and gave the stock a “buy” rating in a research note on Wednesday, June 20th. Finally, Zacks Investment Research upgraded shares of Home Depot from a “hold” rating to a “buy” rating and set a $223.00 price objective on the stock in a research note on Tuesday, July 17th. Seven equities research analysts have rated the stock with a hold rating and twenty-two have issued a buy rating to the stock. The stock presently has an average rating of “Buy” and an average target price of $204.96.

The company has a market cap of $242.53 billion, a P/E ratio of 28.03, a P/E/G ratio of 1.67 and a beta of 1.10. The company has a debt-to-equity ratio of 11.60, a quick ratio of 0.37 and a current ratio of 1.13.

Home Depot (NYSE:HD) last announced its quarterly earnings results on Tuesday, August 14th. The home improvement retailer reported $3.05 EPS for the quarter, beating the 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 company had revenue of $30.46 billion for the quarter, compared to analyst estimates of $30.04 billion. During the same quarter last year, the business earned $0.59 earnings per share. Home Depot’s revenue was up 8.4% compared to the same quarter last year. research analysts forecast that Home Depot Inc will post 9.58 earnings per share for the current fiscal year.

The company also recently declared a quarterly dividend, which was paid on Thursday, September 13th. Shareholders of record on Thursday, August 30th were paid a $1.03 dividend. The ex-dividend date was Wednesday, August 29th. This represents a $4.12 annualized dividend and a dividend yield of 1.97%. Home Depot’s payout ratio is currently 55.23%.

In other news, EVP William G. Lennie sold 10,854 shares of the stock in a transaction that occurred 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 completion of the transaction, the executive vice president now directly owns 40,057 shares in the company, valued at $8,077,093.48. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Matt Carey sold 4,125 shares of the stock in a transaction that occurred on Thursday, August 16th. The shares were sold at an average price of $195.43, for a total transaction of $806,148.75. Following the completion of the transaction, the executive vice president now owns 60,179 shares of the company’s stock, valued at $11,760,781.97. The disclosure for this sale can be found here. 0.25% of the stock is currently owned by company insiders.

Several institutional investors have recently bought and sold shares of HD. Summit Trail Advisors LLC boosted its holdings in shares of Home Depot by 17,627.8% in the first quarter. Summit Trail Advisors LLC now owns 2,233,171 shares of the home improvement retailer’s stock valued at $2,233,000 after acquiring an additional 2,220,574 shares in the last quarter. Senator Investment Group LP bought a new stake in Home Depot during the second quarter worth approximately $234,120,000. Morgan Stanley boosted 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 worth $1,889,985,000 after buying an additional 991,466 shares in the last quarter. Amundi Pioneer Asset Management Inc. boosted its holdings in Home Depot by 17.9% during the fourth quarter. Amundi Pioneer Asset Management Inc. now owns 5,919,857 shares of the home improvement retailer’s stock worth $1,121,990,000 after buying an additional 899,399 shares in the last quarter. Finally, Natixis boosted its holdings in Home Depot by 153.0% during the first quarter. Natixis now owns 1,064,144 shares of the home improvement retailer’s stock worth $189,673,000 after buying an additional 643,600 shares in the last quarter. Institutional investors and hedge funds own 69.03% of the company’s stock.

About Home Depot (NYSE:HD)

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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