Home Depot (NYSE:HD) Trading Up 3.5% Following Strong Earnings

Shares of The Home Depot, Inc. (NYSE:HD) rose 3.5% during trading on Tuesday following a stronger than expected earnings report. The stock traded as high as $397.65 and last traded at $395.90. Approximately 2,341,056 shares changed hands during mid-day trading, a decline of 25% from the average daily volume of 3,116,116 shares. The stock had previously closed at $382.42.

The home improvement retailer reported $3.13 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.04 by $0.09. The company had revenue of $39.70 billion for the quarter, compared to analysts’ expectations of $39.15 billion. Home Depot had a return on equity of 452.60% and a net margin of 9.45%. Home Depot’s quarterly revenue was up 14.1% compared to the same quarter last year. During the same period last year, the business earned $2.82 EPS.

Home Depot Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, March 27th. Shareholders of record on Thursday, March 13th will be given a $2.30 dividend. This represents a $9.20 dividend on an annualized basis and a yield of 2.33%. This is an increase from Home Depot’s previous quarterly dividend of $2.25. Home Depot’s dividend payout ratio is presently 61.14%.

Analyst Ratings Changes

HD has been the subject of several recent analyst reports. Wells Fargo & Company upped 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. Evercore ISI lifted their target price on Home Depot from $420.00 to $430.00 and gave the stock an “outperform” rating in a research note on Wednesday, November 13th. JPMorgan Chase & Co. increased their price target on shares of Home Depot from $450.00 to $475.00 and gave the company an “overweight” rating in a research report on Monday, February 10th. Bank of America boosted their target price on shares of Home Depot from $425.00 to $450.00 and gave the company a “buy” rating in a research note on Wednesday, November 13th. Finally, Barclays raised their target price on Home Depot from $372.00 to $420.00 and gave the stock an “overweight” rating in a research report on Tuesday, November 5th. One equities research analyst has rated the stock with a sell rating, seven have assigned a hold rating and twenty-one have issued a buy rating to the stock. Based on data from MarketBeat.com, Home Depot currently has a consensus rating of “Moderate Buy” and an average target price of $433.44.

Hedge Funds Weigh In On Home Depot

A number of institutional investors have recently bought and sold shares of the stock. Synergy Asset Management LLC bought a new stake in shares of Home Depot during the fourth quarter valued at approximately $26,000. Wingate Wealth Advisors Inc. bought a new stake in shares of Home Depot during the 4th quarter valued at $28,000. Navigoe LLC purchased a new stake 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 lifted its position in Home Depot by 220.0% during the 4th quarter. Quarry LP now owns 96 shares of the home improvement retailer’s stock valued at $37,000 after acquiring an additional 66 shares during the period. 70.86% of the stock is owned by institutional investors.

Home Depot Trading Up 3.4 %

The stock’s fifty day simple moving average is $401.53 and its two-hundred day simple moving average is $398.16. The firm has a market cap of $392.88 billion, a PE ratio of 26.90, a PEG ratio of 4.03 and a beta of 1.05. The company has a quick ratio of 0.31, a current ratio of 1.13 and a debt-to-equity ratio of 8.65.

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.