Home Depot (NYSE:HD) Releases Earnings Results, Beats Estimates By $0.06 EPS

Home Depot (NYSE:HD) released its quarterly earnings results on Tuesday. The home improvement retailer reported $3.81 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.75 by $0.06, MarketWatch Earnings reports. The firm had revenue of $37.71 billion for the quarter, compared to the consensus estimate of $37.59 billion. Home Depot had a return on equity of 1,339.65% and a net margin of 10.22%. The company’s revenue for the quarter was down 3.0% on a year-over-year basis. During the same period last year, the business posted $4.24 EPS.

Home Depot Stock Down 0.6 %

Shares of NYSE HD opened at $306.44 on Friday. The firm has a market capitalization of $306.46 billion, a price-to-earnings ratio of 19.67, a PEG ratio of 2.30 and a beta of 0.93. Home Depot has a 52-week low of $274.26 and a 52-week high of $347.25. The company has a debt-to-equity ratio of 28.37, a quick ratio of 0.35 and a current ratio of 1.30. The stock has a 50 day moving average price of $299.05 and a 200 day moving average price of $306.48.

Home Depot Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 14th. Investors of record on Thursday, November 30th will be issued a $2.09 dividend. This represents a $8.36 dividend on an annualized basis and a dividend yield of 2.73%. Home Depot’s payout ratio is 53.66%.

Home Depot announced that its Board of Directors has initiated a share repurchase plan on Tuesday, August 15th that permits the company to repurchase $15.00 billion in shares. This repurchase authorization permits the home improvement retailer to buy up to 4.6% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s board believes its shares are undervalued.

Insider Buying and Selling

In other news, CAO Kimberly R. Scardino sold 1,600 shares of the company’s stock in a transaction on Wednesday, August 23rd. The stock was sold at an average price of $326.69, for a total transaction of $522,704.00. Following the transaction, the chief accounting officer now directly owns 8,281 shares of the company’s stock, valued at $2,705,319.89. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. In other news, CAO Kimberly R. Scardino sold 1,600 shares of the business’s stock in a transaction on Wednesday, August 23rd. The shares were sold at an average price of $326.69, for a total transaction of $522,704.00. Following the sale, the chief accounting officer now directly owns 8,281 shares of the company’s stock, valued at $2,705,319.89. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, EVP Timothy A. Hourigan sold 12,120 shares of the business’s stock in a transaction on Thursday, August 24th. The shares were sold at an average price of $325.40, for a total transaction of $3,943,848.00. Following the sale, the executive vice president now directly owns 73,049 shares in the company, valued at $23,770,144.60. The disclosure for this sale can be found here. Insiders sold 19,811 shares of company stock valued at $6,441,376 over the last 90 days. Corporate insiders own 0.19% of the company’s stock.

Institutional Investors Weigh In On Home Depot

Hedge funds have recently added to or reduced their stakes in the business. Fairfield Bush & CO. acquired a new position in shares of Home Depot during the 1st quarter worth about $27,000. KB Financial Partners LLC acquired a new stake in Home Depot in the 1st quarter valued at about $28,000. Studio Investment Management LLC acquired a new stake in Home Depot in the 4th quarter valued at about $32,000. Strategic Investment Solutions Inc. IL acquired a new stake in Home Depot in the 1st quarter valued at about $37,000. Finally, Alpha Paradigm Partners LLC acquired a new stake in Home Depot in the 3rd quarter valued at about $45,000. 68.34% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

HD has been the topic of a number of research reports. Citigroup raised their price target on Home Depot from $327.00 to $375.00 and gave the stock a “buy” rating in a research note on Wednesday, August 2nd. Barclays raised their target price on Home Depot from $310.00 to $333.00 and gave the stock an “equal weight” rating in a report on Tuesday, August 15th. Argus decreased their target price on Home Depot from $400.00 to $350.00 and set a “buy” rating on the stock in a report on Wednesday, July 26th. StockNews.com cut Home Depot from a “buy” rating to a “hold” rating in a report on Sunday, October 15th. Finally, Truist Financial reduced their target price on Home Depot from $341.00 to $340.00 and set a “buy” rating on the stock in a report on Wednesday. Twelve equities research analysts have rated the stock with a hold rating and fifteen have given a buy rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $339.57.

About Home Depot

The Home Depot, Inc operates as a home improvement retailer. 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.