The Home Depot Inc. (NYSE:HD) finished Friday with an addition of $0.27 to close at $322.86, an upside of 0.08 percent. An average of 2,665,600 shares of common stock have been traded in the last five days. There was a fall of -$4.51 in the past week, and it reached a new high 9 times over the past 12 months. The last 20 days have seen an average of 3,128,805 shares traded, while the 50-day average volume stands at 3,423,452.
HD stock has decreased by -2.08% in the last month. The company shares reached their 1-month lowest point of $321.20 on 08/25/23. With the stock rallying to its 52-week high on 02/02/23, shares of the company touched a low of $265.61 and a high of $347.25 in 52 weeks. It has reached a new high 8 times so far this year and achieved 2.22% or $7.00 in price. In spite of this, the price is down -7.02% from the 52-week high.
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Insider Transactions
HD stock investors should be aware that The Home Depot Inc. (HD) stock had its last reported insider trading activity 2 days ago on Aug 24. In this transaction, the insider spent $3,943,848. SVP-Finance, CAO & Controller, Scardino Kimberly R, disposed of 1,600 shares at a price of $326.69 on Aug 23. The insider now owns more than $522,704 worth of shares. Prior to that, EVP and CIO Siddiqui Fahim went on to Sale 475 shares at $326.65 each on Aug 23. An amount of $155,159 was transacted.
Valuation Metrics
The Home Depot Inc. (HD) has a trailing price-to-earnings (P/E) ratio of 20.15. The stock’s beta is 0.95. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 2.10, the price-to-book (PB) ratio at 896.83, and the price-to-cash flow ratio at 28.23.
Financial Health
The quick ratio of The Home Depot Inc. for the three months ended July 30 was 0.30, and the current ratio was 1.30, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 113.02 and a total debt to equity ratio of 116.72 for the quarter ending July 30. The Home Depot Inc.’s EBITDA margin for the year ending July 30 is 17.16%, while its operating margin for the same period stands at 15.50%. Its gross profit as reported stood at $52.78 billion compared to revenue of $157.4 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, The Home Depot Inc.’s return on assets was 22.40%.
Earnings Surprise
For the three-month period that ended July 30, The Home Depot Inc. had $40.75 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $4.66 billion in the quarter, while revenues of $3.87 billion were shrunk -11.03%. The analyst consensus anticipated The Home Depot Inc.’s latest quarter earnings to come in at $4.44 per share, but it turned out to be $4.65, a 4.70% surprise. For the quarter, EBITDA amounted to $7.38 billion. Shareholders own equity worth $1.0 billion.
Technical Picture
From a technical analysis perspective, let’s take a brief look at The Home Depot Inc. (HD) price momentum. RSI 9-day as of the close on 25 August was 39.06%, suggesting the stock is Neutral, with historical volatility in this time frame at 12.23%.
As of today, HD’s price is $324.02 -1.38% or -$4.51 from its 5-day moving average. HD is currently trading -2.57% lower than its 20-day SMA and +8.44% higher than its 100-day SMA. However, the stock’s current price level is +7.72% above the SMA50 and +11.23% above the SMA200.
The stochastic %K and %D were 12.80% and 14.12%, respectively, and the average true range (ATR) was 5.11. With the 14-day stochastic at 9.78% and the average true range at 5.04, the RSI (14) stands at 46.50%. The stock has reached -2.81 on the 9-day MACD Oscillator while the 14-day reading was at -3.75.
Analyst Ratings
Telsey Advisory Group downgraded The Home Depot Inc. (NYSE: HD) to a a Market perform rating in its most recent analyst report. Previously, the stock was rated as an Outperform. The consensus rating for The Home Depot Inc. (HD) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell HD, while 15 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 2 analysts, while 17 others rate it as a “buy”.
What is HD’s price target for the next 12 months?
Analysts predict a range of price targets between $296.00 and $384.00, with a median target of $350.00. Taking a look at these predictions, the average price target given by analysts for The Home Depot Inc. (HD) stock is $348.29.
