The stock of The Home Depot Inc. (NYSE:HD) increased by $3.47 on Tuesday to finish at $329.38, up 1.06 percent. The last five days have seen an average of 2,472,900 shares of common stock traded. 8 times new highs were reached in the current year, with a gain of $13.52. The average number of shares traded over the last 20 days was 3,103,325, while the average volume over the last 50 days totaled 3,219,638.
HD stock dropped -1.34% since last month. On 08/25/23, the company’s shares reached a one-month low of $321.20. The stock touched a high of $347.25 on 02/02/23, after rallying from a low of $265.61 in 52 weeks. The price of HD stock has risen by 4.28% or $13.52 this year, reaching a new high 8 times. Still, the stock price is down -5.15% 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 6 days ago on Aug 24. On Aug 24, EVP – Human Resources Hourigan Timothy A. sold 12,120 shares at $325.40 each. This transaction resulted in the insider making $3,943,848. On Aug 23, Scardino Kimberly R sold 1,600 shares at a price of US$326.69. After the transaction, the insider now owns 8,281 shares. EVP and CIO Siddiqui Fahim had earlier sold 475 shares on Aug 23 for $326.65 a share. The transaction was completed for $155,159.
Valuation Metrics
The Home Depot Inc. (HD) has a trailing price-to-earnings (P/E) ratio of 20.56. Beta for the stock is 0.95. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 2.13, the price-to-book (PB) ratio of 245.81, and the price-to-cash flow ratio of 20.23.
Company paid $2.09 per share in dividends, remained unchanged from $2.09 last year.
Financial Health
For the three months ended July 30, The Home Depot Inc.’s quick ratio was 0.40, while its current ratio was 1.30, indicating its inability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending July 30 is 30.53, and the total debt to equity ratio is 31.54. As far as profitability goes, gross margin for the trailing twelve months is 33.50% percent. The Home Depot Inc.’s EBITDA margin for the year ended July 30 was 17.16%, whereas its operating margin stood at 14.90% for the same period. Based on annual data, it had gross profit of $52.78 billion and revenue of $157.4 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. HD’s return on assets (ROA) during the last 12 months has been 21.20%. There was a 41.70% return on investment (ROI) in the past year.
Earnings Surprise
According to The Home Depot Inc.’s quarterly financial report for the quarter that ended July 30. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $42.92 billion, while revenues fell by -2.04% to $37.26 billion. It was predicted that The Home Depot Inc.’s quarterly earnings would be $4.65, but it ended up being $4.44, beating the consensus by 4.70%. EBITDA was $7.38 billion for the quarter. At the end of The Home Depot Inc.’s most recent quarter ended July 30, its liabilities totaled 75.05 billion, while its total debt was $49.49 billion. Equity owned by shareholders amounts to $1.0 billion.
Technical Picture
Here’s a quick look at The Home Depot Inc.’s (HD) price momentum from a technical perspective. As of 29 August, the RSI 9-day stood at 58.30%, suggesting the stock is Neutral, with a 14.33% historical volatility rate.
The stochastic %K and %D were 28.58% and 18.35% respectively, while the average true range (ATR) was 4.92. Based on the 14-day stochastic reading of 48.20%, the RSI (14) reading is 57.49%. On the 9-day MACD Oscillator, the stock is at 0.49, and the 14-day reading is at -1.50.
Analyst Ratings
The Home Depot Inc. (NYSE: HD) was downgraded by Telsey Advisory Group to a a Market perform rating in its latest research report. The stock was previously rated as a an Outperform. Analysts have assigned The Home Depot Inc. (HD) an Overweight rating. HD is a stock that is recommended for selling by 0 brokerage firms, while 15 companies recommend holding. The stock is underweighted by 1 analyst. Among the analysts who rate the stock, 2 rates it overweight and 17 others recommend it as a buy.
What is HD’s price target for the next 12 months?
The current consensus forecast for the stock is between $296.00 and $384.00, with a median target price of $350.00. In analyzing these forecasts, the average price target given by analysts for The Home Depot Inc. (HD) is $348.29.
