The Home Depot, Inc. (NYSE:HD) Given Average Recommendation of "Moderate Buy" by Analysts

Key Points

• Analysts have given The Home Depot an average rating of "Moderate Buy", with a mix of recommendations including six holds, nineteen buys, and one strong buy.
• The average 12-month target price for Home Depot shares is $432.52, with some analyst price targets reaching up to $450.00.
• The company recently announced a quarterly dividend of $2.30 per share, indicating a dividend yield of 2.3% and a payout ratio of 62.50%.

Shares of The Home Depot, Inc. (NYSE:HD - Get Free Report) have received an average rating of "Moderate Buy" from the twenty-six ratings firms that are presently covering the firm, MarketBeat reports. Six research analysts have rated the stock with a hold recommendation, nineteen have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12-month target price among analysts that have covered the stock in the last year is $432.52.

A number of analysts have weighed in on HD shares. DA Davidson reissued a "buy" rating and set a $450.00 price objective on shares of Home Depot in a report on Tuesday, August 19th. Robert W. Baird increased their price objective on Home Depot from $425.00 to $450.00 and gave the company an "outperform" rating in a report on Wednesday, August 20th. Stifel Nicolaus increased their price objective on Home Depot from $425.00 to $432.00 and gave the company a "buy" rating in a report on Monday, August 18th. Mizuho increased their price objective on Home Depot from $435.00 to $450.00 and gave the company an "outperform" rating in a report on Wednesday, August 20th. Finally, Sanford C. Bernstein reissued a "market perform" rating and issued a $398.00 price objective (up from $380.00) on shares of Home Depot in a report on Wednesday, May 21st.

Home Depot Stock Performance

NYSE HD opened at $407.88 on Wednesday. The company has a market cap of $405.81 billion, a P/E ratio of 27.71, a P/E/G ratio of 3.88 and a beta of 1.00. The company has a debt-to-equity ratio of 4.31, a current ratio of 1.15 and a quick ratio of 0.34. The stock has a 50-day moving average of $376.81 and a two-hundred day moving average of $371.24. Home Depot has a 1-year low of $326.31 and a 1-year high of $439.37.

Home Depot (NYSE:HD - Get Free Report) last released its earnings results on Tuesday, August 19th. The home improvement retailer reported $4.68 earnings per share for the quarter, missing analysts' consensus estimates of $4.69 by ($0.01). Home Depot had a return on equity of 193.99% and a net margin of 8.86%.The firm had revenue of $45.28 billion for the quarter, compared to analysts' expectations of $45.43 billion. During the same quarter in the previous year, the company posted $4.60 earnings per share. The firm's quarterly revenue was up 4.9% on a year-over-year basis. Home Depot has set its FY 2025 guidance at 14.940-14.940 EPS. As a group, analysts anticipate that Home Depot will post 15.13 EPS for the current year.

Home Depot Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 18th. Stockholders of record on Thursday, September 4th will be issued a $2.30 dividend. This represents a $9.20 annualized dividend and a dividend yield of 2.3%. The ex-dividend date of this dividend is Thursday, September 4th. Home Depot's dividend payout ratio is presently 62.50%.

Insider Buying and Selling at Home Depot

In other news, CFO Richard V. Mcphail sold 3,369 shares of the company's stock in a transaction that occurred on Wednesday, August 20th. The stock was sold at an average price of $403.66, for a total transaction of $1,359,930.54. Following the completion of the sale, the chief financial officer owned 45,455 shares in the company, valued at $18,348,365.30. This represents a 6.90% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP William D. Bastek sold 3,783 shares of the company's stock in a transaction on Friday, August 22nd. The stock was sold at an average price of $410.23, for a total value of $1,551,900.09. Following the transaction, the executive vice president directly owned 24,235 shares in the company, valued at $9,941,924.05. This represents a 13.50% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 46,532 shares of company stock valued at $18,648,987. Corporate insiders own 0.10% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Financial Gravity Asset Management Inc. acquired a new stake in Home Depot in the first quarter valued at $406,000. Wealth Management Partners LLC grew its holdings in Home Depot by 0.6% in the first quarter. Wealth Management Partners LLC now owns 6,506 shares of the home improvement retailer's stock valued at $2,384,000 after purchasing an additional 36 shares during the last quarter. Arbor Capital Management Inc. ADV grew its holdings in Home Depot by 4.8% in the first quarter. Arbor Capital Management Inc. ADV now owns 4,784 shares of the home improvement retailer's stock valued at $1,757,000 after purchasing an additional 221 shares during the last quarter. ARS Wealth Advisors Group LLC grew its holdings in Home Depot by 0.8% in the first quarter. ARS Wealth Advisors Group LLC now owns 31,728 shares of the home improvement retailer's stock valued at $11,628,000 after purchasing an additional 239 shares during the last quarter. Finally, Tabor Asset Management LP acquired a new stake in Home Depot in the first quarter valued at $5,886,000. Institutional investors and hedge funds own 70.86% of the company's stock.

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.

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