Home Depot (NYSE:HD) Trading Down 0.7% Following Weak Earnings

The Home Depot, Inc. (NYSE:HD - Get Free Report)'s stock price dropped 0.7% during trading on Wednesday after the company announced weaker than expected quarterly earnings. The company traded as low as $372.98 and last traded at $374.27. Approximately 1,017,528 shares traded hands during mid-day trading, a decline of 71% from the average daily volume of 3,547,730 shares. The stock had previously closed at $377.05.

The home improvement retailer reported $3.56 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $3.59 by ($0.03). Home Depot had a net margin of 9.45% and a return on equity of 452.60%. The business had revenue of $39.86 billion during the quarter, compared to analyst estimates of $39.24 billion. During the same quarter last year, the business earned $3.63 earnings per share. Home Depot's revenue for the quarter was up 9.4% on a year-over-year basis.

Home Depot Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, March 27th. Shareholders of record on Thursday, March 13th were given a dividend of $2.30 per share. The ex-dividend date of this dividend was Thursday, March 13th. This is a boost from Home Depot's previous quarterly dividend of $2.25. This represents a $9.20 annualized dividend and a yield of 2.45%. Home Depot's payout ratio is 61.66%.

Wall Street Analysts Forecast Growth

HD has been the topic of a number of recent research reports. Wedbush reaffirmed an "outperform" rating and issued a $440.00 target price on shares of Home Depot in a research report on Wednesday, February 26th. TD Securities reaffirmed a "buy" rating and set a $470.00 price target on shares of Home Depot in a research report on Wednesday. HSBC raised Home Depot from a "reduce" rating to a "hold" rating and increased their price objective for the company from $356.00 to $410.00 in a report on Wednesday, February 26th. Jefferies Financial Group lowered their target price on shares of Home Depot from $461.00 to $456.00 in a report on Tuesday. Finally, Stifel Nicolaus upgraded shares of Home Depot from a "hold" rating to a "buy" rating and set a $425.00 price target for the company in a research note on Wednesday. Eight investment analysts have rated the stock with a hold rating, twenty-one have issued a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat, Home Depot currently has an average rating of "Moderate Buy" and a consensus price target of $427.81.

Institutional Investors Weigh In On Home Depot

A number of hedge funds have recently added to or reduced their stakes in HD. Synergy Asset Management LLC bought a new position in Home Depot in the fourth quarter worth approximately $26,000. Wingate Wealth Advisors Inc. acquired a new position in shares of Home Depot during the fourth quarter valued at about $28,000. Navigoe LLC acquired a new stake in shares of Home Depot in the 4th quarter worth about $29,000. Abound Financial LLC bought a new position in Home Depot in the 1st quarter valued at about $31,000. Finally, Bradley & Co. Private Wealth Management LLC acquired a new position in Home Depot during the 4th quarter valued at about $32,000. 70.86% of the stock is currently owned by institutional investors.

Home Depot Price Performance

The company has a current ratio of 1.13, a quick ratio of 0.31 and a debt-to-equity ratio of 8.65. The business has a fifty day simple moving average of $358.99 and a 200 day simple moving average of $387.78. The stock has a market capitalization of $372.59 billion, a P/E ratio of 25.45, a price-to-earnings-growth ratio of 4.03 and a beta of 1.05.

Home Depot Company Profile

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.

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