HD Supply (HDS) Trading Up 6.3% After Better-Than-Expected Earnings

HD Supply Holdings Inc (NASDAQ:HDS)’s share price was up 6.3% during mid-day trading on Tuesday following a stronger than expected earnings report. The stock traded as high as $40.26 and last traded at $38.80. Approximately 8,922,918 shares were traded during mid-day trading, an increase of 228% from the average daily volume of 2,720,937 shares. The stock had previously closed at $36.49.

The industrial products company reported $0.80 earnings per share for the quarter, beating analysts’ consensus estimates of $0.75 by $0.05. The company had revenue of $1.37 billion during the quarter, compared to analysts’ expectations of $1.34 billion. HD Supply had a net margin of 9.31% and a return on equity of 49.76%. The firm’s revenue for the quarter was up 7.5% on a year-over-year basis. During the same period in the prior year, the company posted $0.83 EPS.

HD Supply declared that its board has authorized a share repurchase plan on Tuesday, August 29th that permits the company to repurchase $500.00 million in shares. This repurchase authorization permits the industrial products company to purchase shares of its stock through open market purchases. Shares repurchase plans are often an indication that the company’s board of directors believes its stock is undervalued.

A number of equities analysts have weighed in on HDS shares. Zacks Investment Research raised shares of HD Supply from a “hold” rating to a “buy” rating and set a $37.00 price objective for the company in a research report on Monday, September 4th. BidaskClub raised shares of HD Supply from a “hold” rating to a “buy” rating in a research report on Thursday, September 28th. ValuEngine raised shares of HD Supply from a “hold” rating to a “buy” rating in a research report on Monday, October 2nd. Finally, Morgan Stanley reissued an “equal weight” rating and issued a $37.00 price objective (up from $36.00) on shares of HD Supply in a research report on Friday, September 1st. Thirteen investment analysts have rated the stock with a hold rating and five have given a buy rating to the company. HD Supply has a consensus rating of “Hold” and an average target price of $38.15.

Hedge funds have recently modified their holdings of the company. Creative Planning lifted its holdings in HD Supply by 15.2% in the second quarter. Creative Planning now owns 3,800 shares of the industrial products company’s stock worth $116,000 after acquiring an additional 500 shares during the last quarter. Massey Quick Simon & CO. LLC bought a new position in HD Supply in the third quarter worth about $185,000. Barrett Asset Management LLC bought a new position in HD Supply in the second quarter worth about $161,000. Pinebridge Investments L.P. lifted its holdings in HD Supply by 170.0% in the second quarter. Pinebridge Investments L.P. now owns 5,400 shares of the industrial products company’s stock worth $165,000 after acquiring an additional 3,400 shares during the last quarter. Finally, Daiwa Securities Group Inc. bought a new position in HD Supply in the second quarter worth about $181,000.

The company has a quick ratio of 1.41, a current ratio of 2.04 and a debt-to-equity ratio of 3.57. The company has a market capitalization of $6,810.72, a price-to-earnings ratio of 14.37, a PEG ratio of 0.82 and a beta of 1.40.

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HD Supply Company Profile

HD Supply Holdings, Inc is an industrial distributor in North America. The Company’s segments include Facilities Maintenance, Construction & Industrial-White Cap, and Corporate. As of January 29, 2017, the Company operated through approximately 500 locations across 48 states in the United States and six Canadian provinces.

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