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

The Home Depot, Inc. (NYSE:HD)’s stock price was up 0.5% during trading on Wednesday following a better than expected earnings announcement. The company traded as high as $398.87 and last traded at $395.28. Approximately 1,269,987 shares were traded during trading, a decline of 60% from the average daily 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 analysts’ consensus estimates of $3.04 by $0.09. Home Depot had a return on equity of 452.60% and a net margin of 9.45%. The firm had revenue of $39.70 billion for the quarter, compared to analyst estimates of $39.15 billion. During the same quarter last year, the company earned $2.82 EPS. The company’s revenue was up 14.1% on a year-over-year basis.

Home Depot Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, March 27th. Shareholders of record on Thursday, March 13th will be issued a $2.30 dividend. This represents a $9.20 dividend on an annualized basis and a dividend yield of 2.36%. The ex-dividend date of this dividend is Thursday, March 13th. This is an increase from Home Depot’s previous quarterly dividend of $2.25. Home Depot’s dividend payout ratio (DPR) is currently 61.66%.

Analyst Ratings Changes

A number of brokerages have weighed in on HD. HSBC raised Home Depot from a “reduce” rating to a “hold” rating and raised their target price for the company from $356.00 to $410.00 in a report on Wednesday. Bank of America raised their target price on Home Depot from $425.00 to $450.00 and gave the company a “buy” rating in a report on Wednesday, November 13th. Barclays raised their target price on Home Depot from $372.00 to $420.00 and gave the company an “overweight” rating in a report on Tuesday, November 5th. Wells Fargo & Company raised their target price on Home Depot from $440.00 to $450.00 and gave the company an “overweight” rating in a report on Thursday, February 13th. Finally, Evercore ISI raised their price objective on Home Depot from $420.00 to $430.00 and gave the company an “outperform” rating in a report on Wednesday, November 13th. Nine equities research analysts have rated the stock with a hold rating and twenty-two have assigned a buy rating to the company’s stock. Based on data from MarketBeat, Home Depot presently has a consensus rating of “Moderate Buy” and a consensus price target of $436.50.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in HD. Synergy Asset Management LLC bought a new position in shares of Home Depot in the 4th quarter worth about $26,000. Wingate Wealth Advisors Inc. bought a new position in shares of Home Depot in the 4th quarter worth about $28,000. Navigoe LLC bought a new position in shares of Home Depot in the 4th quarter worth about $29,000. Bradley & Co. Private Wealth Management LLC bought a new position in shares of Home Depot in the 4th quarter worth about $32,000. Finally, Quarry LP raised its position in shares of Home Depot by 220.0% in the 4th quarter. Quarry LP now owns 96 shares of the home improvement retailer’s stock worth $37,000 after acquiring an additional 66 shares in the last quarter. 70.86% of the stock is owned by institutional investors.

Home Depot Stock Performance

The company has a 50-day moving average price of $401.27 and a two-hundred day moving average price of $398.37. 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 stock has a market capitalization of $387.85 billion, a P/E ratio of 26.52, 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.