Home Depot Inc (NYSE:HD) – Equities researchers at Jefferies Financial Group dropped their Q2 2020 earnings per share (EPS) estimates for Home Depot in a research report issued to clients and investors on Tuesday, May 21st. Jefferies Financial Group analyst J. Matuszewski now forecasts that the home improvement retailer will post earnings per share of $2.97 for the quarter, down from their previous forecast of $3.17. Jefferies Financial Group also issued estimates for Home Depot’s Q4 2020 earnings at $2.22 EPS, FY2020 earnings at $10.04 EPS and FY2021 earnings at $10.75 EPS.
A number of other brokerages have also weighed in on HD. Edward Jones raised Home Depot from a “hold” rating to a “buy” rating in a report on Wednesday, February 13th. DZ Bank lowered Home Depot from a “buy” rating to a “hold” rating in a report on Wednesday, February 27th. Zacks Investment Research lowered Home Depot from a “hold” rating to a “sell” rating in a report on Tuesday, May 7th. Telsey Advisory Group reiterated a “market perform” rating and set a $192.00 target price on shares of Home Depot in a research report on Wednesday, May 1st. Finally, Royal Bank of Canada decreased their target price on Home Depot from $223.00 to $217.00 and set a “buy” rating on the stock in a research report on Tuesday, May 7th. Nine analysts have rated the stock with a hold rating and eleven have issued a buy rating to the company’s stock. The company currently has a consensus rating of “Buy” and a consensus target price of $205.29.
Shares of HD stock opened at $193.59 on Thursday. Home Depot has a 1-year low of $158.09 and a 1-year high of $215.43. The firm has a market cap of $208.54 billion, a P/E ratio of 19.57, a price-to-earnings-growth ratio of 1.62 and a beta of 1.09. The company has a current ratio of 1.04, a quick ratio of 0.28 and a debt-to-equity ratio of 17.68.
Home Depot (NYSE:HD) last announced its quarterly earnings data on Tuesday, May 21st. The home improvement retailer reported $2.27 earnings per share for the quarter, topping the Zacks’ consensus estimate of $2.17 by $0.10. Home Depot had a negative return on equity of 6,597.69% and a net margin of 10.24%. The firm had revenue of $26.38 billion for the quarter, compared to analyst estimates of $26.34 billion. During the same quarter in the prior year, the company posted $2.08 earnings per share. Home Depot’s quarterly revenue was up 5.7% on a year-over-year basis.
Home Depot declared that its board has authorized a stock buyback program on Tuesday, February 26th that allows the company to buyback $15.00 billion in outstanding shares. This buyback authorization allows the home improvement retailer to purchase up to 6.9% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s management believes its stock is undervalued.
The company also recently announced a quarterly dividend, which will be paid on Thursday, June 20th. Shareholders of record on Thursday, June 6th will be given a dividend of $1.36 per share. The ex-dividend date is Wednesday, June 5th. This represents a $5.44 dividend on an annualized basis and a yield of 2.81%. Home Depot’s payout ratio is 55.01%.
In other news, EVP Edward P. Decker sold 23,744 shares of the company’s stock in a transaction on Tuesday, March 12th. The stock was sold at an average price of $182.93, for a total value of $4,343,489.92. Following the sale, the executive vice president now directly owns 86,813 shares in the company, valued at $15,880,702.09. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Ann Marie Campbell sold 5,450 shares of the company’s stock in a transaction on Tuesday, March 5th. The shares were sold at an average price of $184.67, for a total value of $1,006,451.50. Following the completion of the sale, the executive vice president now owns 51,030 shares in the company, valued at $9,423,710.10. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 41,194 shares of company stock worth $7,553,141. 0.27% of the stock is owned by company insiders.
Several large investors have recently modified their holdings of the company. American Financial Advisors LLC lifted its position in Home Depot by 0.8% during the first quarter. American Financial Advisors LLC now owns 6,124 shares of the home improvement retailer’s stock worth $1,175,000 after buying an additional 49 shares during the period. Indiana Trust & Investment Management CO lifted its position in Home Depot by 1.8% during the first quarter. Indiana Trust & Investment Management CO now owns 2,844 shares of the home improvement retailer’s stock worth $546,000 after buying an additional 50 shares during the period. Excalibur Management Corp lifted its position in Home Depot by 1.6% during the first quarter. Excalibur Management Corp now owns 3,232 shares of the home improvement retailer’s stock worth $620,000 after buying an additional 50 shares during the period. Granite Investment Advisors LLC lifted its position in Home Depot by 0.3% during the first quarter. Granite Investment Advisors LLC now owns 16,138 shares of the home improvement retailer’s stock worth $3,097,000 after buying an additional 50 shares during the period. Finally, Wedgewood Investors Inc. PA lifted its position in Home Depot by 1.0% during the first quarter. Wedgewood Investors Inc. PA now owns 5,409 shares of the home improvement retailer’s stock worth $1,038,000 after buying an additional 52 shares during the period. Institutional investors and hedge funds own 69.31% of the company’s stock.
About Home Depot
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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