Home Depot (NYSE:HD) Trading Up 1.6% on Strong Earnings

The Home Depot, Inc. (NYSE:HD)’s stock price shot up 1.6% during mid-day trading on Wednesday following a better than expected earnings announcement. The company traded as high as $412.74 and last traded at $409.52. 816,432 shares traded hands during mid-day trading, a decline of 76% from the average session volume of 3,372,059 shares. The stock had previously closed at $403.08.

The home improvement retailer reported $3.78 EPS for the quarter, topping analysts’ consensus estimates of $3.64 by $0.14. Home Depot had a return on equity of 452.60% and a net margin of 9.45%. The firm had revenue of $40.22 billion during the quarter, compared to analyst estimates of $39.31 billion. During the same period last year, the company earned $3.81 earnings per share. The business’s revenue for the quarter was up 6.6% on a year-over-year basis.

Home Depot Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 12th. Investors of record on Wednesday, November 27th will be issued a dividend of $2.25 per share. This represents a $9.00 dividend on an annualized basis and a yield of 2.22%. Home Depot’s dividend payout ratio (DPR) is presently 61.14%.

Wall Street Analysts Forecast Growth

HD has been the topic of a number of recent analyst reports. Oppenheimer raised their target price on shares of Home Depot from $345.00 to $400.00 and gave the company a “market perform” rating in a research note on Tuesday, September 24th. Barclays boosted their target price on Home Depot from $372.00 to $420.00 and gave the company an “overweight” rating in a research note on Tuesday, November 5th. TD Cowen increased their price target on shares of Home Depot from $440.00 to $460.00 and gave the company a “buy” rating in a research report on Monday, October 28th. Truist Financial increased their price objective on Home Depot from $459.00 to $465.00 and gave the stock a “buy” rating in a report on Wednesday. Finally, Loop Capital raised shares of Home Depot from a “hold” rating to a “buy” rating and lifted their target price for the company from $360.00 to $460.00 in a research note on Wednesday, October 9th. One analyst has rated the stock with a sell rating, seven have assigned a hold rating and twenty-three have assigned a buy rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $426.00.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of HD. Fairway Wealth LLC purchased a new stake in shares of Home Depot in the second quarter worth $25,000. Kings Path Partners LLC purchased a new stake in Home Depot in the 2nd quarter worth about $33,000. Livelsberger Financial Advisory bought a new stake in shares of Home Depot during the 3rd quarter worth approximately $46,000. Denver PWM LLC bought a new stake in shares of Home Depot during the second quarter worth $40,000. Finally, Abich Financial Wealth Management LLC lifted its holdings in Home Depot by 68.0% during the 1st quarter. Abich Financial Wealth Management LLC now owns 126 shares of the home improvement retailer’s stock valued at $48,000 after buying an additional 51 shares in the last quarter. Institutional investors own 70.86% of the company’s stock.

Home Depot Stock Down 1.1 %

The company has a debt-to-equity ratio of 8.65, a current ratio of 1.13 and a quick ratio of 0.33. The business has a fifty day moving average of $397.67 and a 200-day moving average of $365.56. The stock has a market cap of $402.88 billion, a PE ratio of 27.56, a price-to-earnings-growth ratio of 2.79 and a beta of 1.01.

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.