Home Depot Inc. (NYSE:HD) finished Friday with a subtraction of -$1.33 to close at $302.16, a downside of -0.44 percent. An average of 2,584,740 shares of common stock have been traded in the last five days. There was a fall of -$3.57 in the past week, and it reached a new high 17 times over the past 12 months. The last 20 days have seen an average of 2,790,485 shares traded, while the 50-day average volume stands at 2,915,928.
HD stock has decreased by -8.61% in the last month. The company shares reached their 1-month lowest point of $299.82 on 09/29/23. With the stock rallying to its 52-week high on 02/02/23, shares of the company touched a low of $267.86 and a high of $347.25 in 52 weeks. It has reached a new high 8 times so far this year and lost -4.34% or -$13.70 in price. In spite of this, the price is down -12.98% from the 52-week high.
Insider Transactions
HD stock investors should be aware that Home Depot Inc. (HD) stock had its last reported insider trading activity 29 days ago on Sep 01. In this transaction, the insider spent $664,520. EVP – Human Resources, Hourigan Timothy A., disposed of 12,120 shares at a price of $325.40 on Aug 24. The insider now owns more than $3,943,848 worth of shares. Prior to that, SVP-Finance, CAO & Controller Scardino Kimberly R went on to Sale 1,600 shares at $326.69 each on Aug 23. An amount of $522,704 was transacted.
Valuation Metrics
Home Depot Inc. (HD) has a trailing price-to-earnings (P/E) ratio of 18.87. The stock’s beta is 0.97. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 1.95, the price-to-book (PB) ratio at 226.56, and the price-to-cash flow ratio at 18.57.
The company has a payout ratio of 45.54%. The company’s most recent quarterly dividend payment was $2.09 a share, without any change from last year. Its latest increase dividend $0.19 reported on Tuesday February 21 2023.
Financial Health
The quick ratio of Home Depot Inc. for the three months ended July 30 was 0.35, and the current ratio was 1.31, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 35.30 and a total debt to equity ratio of 37.07 for the quarter ending July 30. 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, Home Depot Inc.’s return on assets was 21.33%.
Earnings Surprise
For the three-month period that ended July 30, 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 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 Home Depot Inc. (HD) price momentum. RSI 9-day as of the close on 29 September was 22.50%, suggesting the stock is oversold, with historical volatility in this time frame at 9.12%.
As of today, HD’s price is $303.30 -1.17% or -$3.57 from its 5-day moving average. HD is currently trading -8.52% lower than its 20-day SMA and +4.94% higher than its 100-day SMA. However, the stock’s current price level is -5.31% below the SMA50 and -7.87% below the SMA200.
The stochastic %K and %D were 8.60% and 7.14%, respectively, and the average true range (ATR) was 4.47. With the 14-day stochastic at 7.68% and the average true range at 4.48, the RSI (14) stands at 27.45%. The stock has reached -3.56 on the 9-day MACD Oscillator while the 14-day reading was at -10.00.
Analyst Ratings
HSBC Securities launched coverage on Home Depot Inc. (NYSE: HD) in its analyst report released on September 22, 2023. The firm assigned the stock a Hold rating. The consensus rating for 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 2 analysts 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 $352.50. Taking a look at these predictions, the average price target given by analysts for Home Depot Inc. (HD) stock is $350.75.
