Home Depot (NYSE:HD) Trading Up 0.5% After Better-Than-Expected Earnings

The Home Depot, Inc. (NYSE:HD) shares shot up 0.5% during mid-day trading on Wednesday following a stronger than expected earnings report. The company traded as high as $398.87 and last traded at $395.28. 1,269,987 shares changed hands during trading, a decline of 60% from the average session volume of 3,198,138 shares. The stock had previously closed at $393.29.

The home improvement retailer reported $3.13 EPS for the quarter, topping the consensus estimate of $3.04 by $0.09. Home Depot had a net margin of 9.45% and a return on equity of 452.60%. The company had revenue of $39.70 billion during the quarter, compared to analysts’ expectations of $39.15 billion. During the same period last year, the company posted $2.82 earnings per share. The business’s revenue for the quarter was up 14.1% on a year-over-year basis.

Home Depot Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, March 27th. Shareholders of record on Thursday, March 13th will be given a dividend of $2.30 per share. This represents a $9.20 annualized dividend and a yield of 2.33%. This is a boost from Home Depot’s previous quarterly dividend of $2.25. Home Depot’s payout ratio is presently 61.14%.

Analyst Upgrades and Downgrades

HD has been the topic of a number of research reports. Telsey Advisory Group reaffirmed an “outperform” rating and issued a $455.00 price target on shares of Home Depot in a research note on Wednesday. Royal Bank of Canada lifted their target price on shares of Home Depot from $363.00 to $413.00 and gave the stock a “sector perform” rating in a report on Monday, November 11th. Stifel Nicolaus boosted their target price on shares of Home Depot from $375.00 to $400.00 and gave the stock a “hold” rating in a research report on Monday, November 11th. Bank of America raised their price target on Home Depot from $425.00 to $450.00 and gave the company a “buy” rating in a research report on Wednesday, November 13th. Finally, HSBC raised Home Depot from a “reduce” rating to a “hold” rating and boosted their price objective for the stock from $356.00 to $410.00 in a research report on Wednesday. Eight research analysts have rated the stock with a hold rating and twenty-one have assigned a buy rating to the stock. According to MarketBeat, Home Depot currently has a consensus rating of “Moderate Buy” and an average price target of $437.12.

Institutional Trading of Home Depot

Several large investors have recently added to or reduced their stakes in the business. Synergy Asset Management LLC bought a new position in Home Depot during the fourth quarter valued at approximately $26,000. Wingate Wealth Advisors Inc. purchased a new position in Home Depot in the fourth quarter worth about $28,000. Navigoe LLC purchased a new stake in Home Depot during the 4th quarter valued at $29,000. Bradley & Co. Private Wealth Management LLC purchased a new position in Home Depot during the fourth quarter worth $32,000. Finally, Quarry LP raised its stake in shares of Home Depot by 220.0% in the fourth quarter. Quarry LP now owns 96 shares of the home improvement retailer’s stock valued at $37,000 after acquiring an additional 66 shares during the period. 70.86% of the stock is currently owned by institutional investors.

Home Depot Trading Up 0.5 %

The company has a debt-to-equity ratio of 8.65, a quick ratio of 0.31 and a current ratio of 1.13. The company has a market cap of $392.79 billion, a PE ratio of 26.86, a PEG ratio of 4.03 and a beta of 1.05. The stock has a fifty day moving average of $401.23 and a 200-day moving average of $398.48.

About Home Depot

The Home Depot, Inc operates as a home improvement retailer in the United States and internationally. It sells various building materials, home improvement products, lawn and garden products, and décor products, as well as facilities maintenance, repair, and operations products. The company also offers installation services for flooring, water heaters, bath, garage doors, cabinets, cabinet makeovers, countertops, sheds, furnaces and central air systems, and windows.