Home Depot (NYSE:HD) Trading 0.5% Higher After Earnings Beat

The Home Depot, Inc. (NYSE:HD)’s share price was up 0.5% on Wednesday after the company announced better than expected quarterly earnings. The company traded as high as $398.87 and last traded at $395.28. Approximately 1,269,987 shares changed hands during mid-day 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 company had revenue of $39.70 billion during the quarter, compared to analysts’ expectations of $39.15 billion. During the same quarter in the previous year, the firm earned $2.82 EPS. Home Depot’s revenue was up 14.1% on a year-over-year basis.

Home Depot Increases Dividend

The company 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 yield of 2.36%. The ex-dividend date is Thursday, March 13th. This is a boost from Home Depot’s previous quarterly dividend of $2.25. Home Depot’s dividend payout ratio is presently 61.14%.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on HD shares. Truist Financial lowered their target price on Home Depot from $467.00 to $437.00 and set a “buy” rating for the company in a report on Wednesday. HSBC raised Home Depot from a “reduce” rating to a “hold” rating and upped their target price for the stock from $356.00 to $410.00 in a report on Wednesday. Guggenheim reaffirmed a “buy” rating and issued a $450.00 target price on shares of Home Depot in a report on Wednesday. Barclays upped their target price on Home Depot from $372.00 to $420.00 and gave the stock an “overweight” rating in a report on Tuesday, November 5th. Finally, Evercore ISI upped their price target on Home Depot from $420.00 to $430.00 and gave the company an “outperform” rating in a research report on Wednesday, November 13th. Eight equities research analysts have rated the stock with a hold rating and twenty-two have given a buy rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $436.50.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. POM Investment Strategies LLC raised its stake in Home Depot by 1.1% during the 4th quarter. POM Investment Strategies LLC now owns 2,117 shares of the home improvement retailer’s stock worth $824,000 after buying an additional 24 shares during the period. Center for Financial Planning Inc. raised its stake in shares of Home Depot by 0.5% in the fourth quarter. Center for Financial Planning Inc. now owns 4,653 shares of the home improvement retailer’s stock worth $1,810,000 after purchasing an additional 24 shares during the last quarter. Insight Inv LLC raised its stake in shares of Home Depot by 2.0% in the third quarter. Insight Inv LLC now owns 1,246 shares of the home improvement retailer’s stock worth $505,000 after purchasing an additional 25 shares during the last quarter. Marino Stram & Associates LLC raised its stake in shares of Home Depot by 2.3% in the fourth quarter. Marino Stram & Associates LLC now owns 1,108 shares of the home improvement retailer’s stock worth $431,000 after purchasing an additional 25 shares during the last quarter. Finally, Live Oak Private Wealth LLC raised its stake in shares of Home Depot by 0.5% in the fourth quarter. Live Oak Private Wealth LLC now owns 4,915 shares of the home improvement retailer’s stock worth $1,912,000 after purchasing an additional 25 shares during the last quarter. 70.86% of the stock is owned by institutional investors and hedge funds.

Home Depot Trading Down 0.7 %

The stock has a market capitalization of $387.81 billion, a PE ratio of 26.52, a P/E/G ratio of 4.03 and a beta of 1.05. The firm has a 50 day moving average price of $401.17 and a 200 day moving average price of $398.42. The company has a quick ratio of 0.31, a current ratio of 1.13 and a debt-to-equity ratio of 8.65.

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.