Traders Sell Home Depot (HD) on Strength on Analyst Downgrade

Traders sold shares of Home Depot Inc (NYSE:HD) on strength during trading hours on Wednesday after Zacks Investment Research downgraded the stock from a hold rating to a sell rating. $116.51 million flowed into the stock on the tick-up and $181.43 million flowed out of the stock on the tick-down, for a money net flow of $64.92 million out of the stock. Of all stocks tracked, Home Depot had the 0th highest net out-flow for the day. Home Depot traded up $0.40 for the day and closed at $195.17

A number of other research analysts also recently weighed in on HD. Bank of America reissued a “neutral” rating and issued a $202.00 price objective on shares of Home Depot in a research note on Thursday, April 11th. Morgan Stanley lifted their price target on Home Depot from $200.00 to $210.00 and gave the stock an “overweight” rating in a research report on Monday, April 15th. Telsey Advisory Group reaffirmed a “market perform” rating and issued a $192.00 price target on shares of Home Depot in a research report on Wednesday, May 1st. Evercore ISI assumed coverage on Home Depot in a research report on Wednesday, March 20th. They issued an “outperform” rating and a $215.00 price target on the stock. Finally, Wells Fargo & Co lifted their price target on Home Depot from $205.00 to $215.00 and gave the stock an “outperform” rating in a research report on Thursday, May 2nd. One investment analyst has rated the stock with a sell rating, eight have assigned a hold rating and eleven have given a buy rating to the company’s stock. Home Depot currently has an average rating of “Buy” and a consensus price target of $204.71.

In other news, EVP Mark Holifield sold 12,000 shares of Home Depot stock in a transaction that occurred on Thursday, February 28th. The stock was sold at an average price of $183.60, for a total transaction of $2,203,200.00. Following the sale, the executive vice president now owns 39,794 shares of the company’s stock, valued at approximately $7,306,178.40. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Edward P. Decker sold 23,744 shares of Home Depot stock in a transaction that occurred on Tuesday, March 12th. The stock was sold at an average price of $182.93, for a total value of $4,343,489.92. Following the sale, the executive vice president now directly owns 86,813 shares in the company, valued at approximately $15,880,702.09. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 41,194 shares of company stock worth $7,553,141. Company insiders own 0.27% of the company’s stock.



Several large investors have recently made changes to their positions in the company. Nelson Roberts Investment Advisors LLC boosted its stake in Home Depot by 2,058.5% in the 1st quarter. Nelson Roberts Investment Advisors LLC now owns 38,918 shares of the home improvement retailer’s stock valued at $7,468,000 after buying an additional 37,115 shares in the last quarter. Crestwood Advisors Group LLC boosted its stake in Home Depot by 13.8% in the 1st quarter. Crestwood Advisors Group LLC now owns 2,483 shares of the home improvement retailer’s stock valued at $477,000 after buying an additional 301 shares in the last quarter. YorkBridge Wealth Partners LLC boosted its stake in Home Depot by 1.3% in the 1st quarter. YorkBridge Wealth Partners LLC now owns 13,086 shares of the home improvement retailer’s stock valued at $2,511,000 after buying an additional 171 shares in the last quarter. Moseley Investment Management Inc. acquired a new stake in Home Depot in the 1st quarter valued at $1,582,000. Finally, Hallmark Capital Management Inc. boosted its stake in Home Depot by 2.6% in the 1st quarter. Hallmark Capital Management Inc. now owns 16,282 shares of the home improvement retailer’s stock valued at $3,124,000 after buying an additional 405 shares in the last quarter. 71.01% of the stock is currently owned by institutional investors.

The company has a quick ratio of 0.28, a current ratio of 1.11 and a debt-to-equity ratio of 17.68. The company has a market cap of $215.10 billion, a P/E ratio of 19.67, a price-to-earnings-growth ratio of 1.74 and a beta of 1.09.

Home Depot (NYSE:HD) last announced its quarterly earnings results on Tuesday, February 26th. The home improvement retailer reported $2.25 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $2.16 by $0.09. The business had revenue of $26.49 billion for the quarter, compared to analyst estimates of $26.57 billion. Home Depot had a return on equity of 1,441.05% and a net margin of 10.28%. Home Depot’s quarterly revenue was up 10.9% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.69 EPS. Equities research analysts predict that Home Depot Inc will post 10.09 earnings per share for the current year.

Home Depot announced that its Board of Directors has approved a stock buyback plan on Tuesday, February 26th that authorizes the company to repurchase $15.00 billion in outstanding shares. This repurchase authorization authorizes the home improvement retailer to reacquire up to 6.9% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s board of directors believes its shares are undervalued.

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About Home Depot (NYSE:HD)

The Home Depot, Inc operates as a home improvement retailer. It operates The Home Depot stores that sell various building materials, home improvement products, lawn and garden products, and décor products, as well as provide installation, home maintenance, and professional service programs to do-it-yourself and professional customers.

See Also: Earnings Per Share (EPS)

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