The Home Depot, Inc. (NYSE:HD) Receives Consensus Rating of "Moderate Buy" from Analysts

Key Points

• The Home Depot has received an average rating of "Moderate Buy" from analysts, with 20 out of 27 firms issuing a buy recommendation.
• The average 1-year price target for Home Depot is set at $435.00, following several upgrades from major investment firms.
• Home Depot recently reported $4.68 EPS for the quarter, slightly missing consensus estimates, while announcing a quarterly dividend of $2.30 per share.

Shares of The Home Depot, Inc. (NYSE:HD - Get Free Report) have received an average rating of "Moderate Buy" from the twenty-seven ratings firms that are covering the firm, Marketbeat reports. Six analysts have rated the stock with a hold recommendation, twenty have issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1 year price target among brokers that have updated their coverage on the stock in the last year is $435.00.

HD has been the topic of a number of recent research reports. TD Securities cut shares of Home Depot to a "buy" rating in a research report on Monday, June 2nd. Morgan Stanley lifted their price target on shares of Home Depot from $415.00 to $430.00 and gave the company an "overweight" rating in a research report on Wednesday, August 20th. Robert W. Baird lifted their price target on shares of Home Depot from $425.00 to $450.00 and gave the company an "outperform" rating in a research report on Wednesday, August 20th. Wells Fargo & Company boosted their target price on shares of Home Depot from $420.00 to $450.00 and gave the stock an "overweight" rating in a research report on Wednesday, August 20th. Finally, DA Davidson reissued a "buy" rating and set a $450.00 target price on shares of Home Depot in a research report on Tuesday, August 19th.

Home Depot Stock Performance

Shares of HD opened at $415.77 on Friday. The company has a current ratio of 1.15, a quick ratio of 0.34 and a debt-to-equity ratio of 4.31. The stock has a market cap of $413.85 billion, a P/E ratio of 28.25, a PEG ratio of 3.94 and a beta of 1.00. The company has a 50-day moving average of $394.94 and a two-hundred day moving average of $373.39. Home Depot has a 12-month low of $326.31 and a 12-month high of $439.37.

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

Home Depot Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, September 18th. Stockholders of record on Thursday, September 4th were given a dividend of $2.30 per share. This represents a $9.20 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date of this dividend was Thursday, September 4th. Home Depot's payout ratio is presently 62.50%.

Insider Transactions at Home Depot

In related news, CEO Edward P. Decker sold 32,897 shares of the company's stock in a transaction on Thursday, August 21st. The shares were sold at an average price of $397.22, for a total value of $13,067,346.34. Following the sale, the chief executive officer directly owned 122,425 shares of the company's stock, valued at $48,629,658.50. This represents a 21.18% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Richard V. Mcphail sold 3,369 shares of the company's stock in a transaction on Wednesday, August 20th. The shares were 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 directly 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 disclosure for this sale can be found here. Insiders sold a total of 48,835 shares of company stock valued at $19,623,432 over the last ninety days. 0.10% of the stock is currently owned by corporate insiders.

Institutional Trading of Home Depot

Several institutional investors have recently added to or reduced their stakes in the business. Watts Gwilliam & Co. LLC grew its position in shares of Home Depot by 3.6% during the second quarter. Watts Gwilliam & Co. LLC now owns 4,124 shares of the home improvement retailer's stock worth $1,512,000 after acquiring an additional 143 shares during the last quarter. Canal Capital Management LLC grew its position in shares of Home Depot by 5.4% during the second quarter. Canal Capital Management LLC now owns 17,464 shares of the home improvement retailer's stock worth $6,403,000 after acquiring an additional 902 shares during the last quarter. Valeo Financial Advisors LLC grew its position in shares of Home Depot by 8.6% during the second quarter. Valeo Financial Advisors LLC now owns 29,244 shares of the home improvement retailer's stock worth $10,722,000 after acquiring an additional 2,308 shares during the last quarter. Milestones Private Investment Advisors LLC bought a new position in shares of Home Depot during the second quarter worth about $301,000. Finally, WT Wealth Management grew its position in shares of Home Depot by 1.4% during the second quarter. WT Wealth Management now owns 8,199 shares of the home improvement retailer's stock worth $3,006,000 after acquiring an additional 110 shares during the last quarter. Institutional investors own 70.86% of the company's stock.

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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