The Home Depot, Inc. (NYSE:HD) has been downgraded by BofA/Merrill on November 16 which now rates the stock as Neutral compared with Buy rating suggested in the past. Analysts at Morgan Stanley, maintained the company shares at Overweight on October 23 but switched target price from $225 to $200. The stock lost favor of Credit Suisse analysts who expressed their lack of confidence in it using a downgrade from Outperform to Neutral on October 17. Wells Fargo, released new analyst coverage on April 24, calling the stock is Outperform.
The Home Depot, Inc. (HD) hit an intraday high Tuesday at $186.99. The shares finished at $186.39, after trading as low as $184.69 earlier in the session. It dropped -0.02% in recent trade and currently has a stock-market value of $211.55B. Trading activity significantly weakened as the volume at ready counter decreased to 3,928,622 shares versus 4,586,290 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 4,602,929 shares. The stock is now 17.9% above against its bear-market low of $158.09 on December 24, 2018. It has retreated -15.58% since it’s 52-week high of $215.43 reached in September. Now the market price is down -3.91% on the year and up 8.48% YTD.
HD’s 50 day simple moving average (SMA 50) price is $174.85 and its 200-day simple moving average (SMA 200) price is $188.88. The company’s stock currently has a total float of 1.13B shares. Its weekly volatility is hovering around 1.68% and felt 1.72% volatility in price over a month. On the upside, the share price will test short term resistance at around $187.36. On a downside, the stock is likely to find some support, which begins at $185.06. The failure to get near-term support could push it to $183.72.
Separately, it has been reported that multiple insider activity took place at The Home Depot, Inc. (HD). EVP, Gen. Counsel & Corp. Sec. Roseborough Teresa Wynn sold 7,203 shares for $15,906 in transaction occurred on 2018/12/07. After making this transaction, the EVP, Gen. Counsel & Corp. Sec. owns a direct stake of 1,278,172 shares, worth $2,964,719, as per the last closing price. On 2018/11/29 Campbell Ann Marie, EVP – U.S. Stores at HD, dumped 13,457 shares at an average price of $172.64 per share. The selling total is valued at $10,528,239.
Director, Hewett Wayne M. had invested in 250 shares for $1,650 through a trade on 2018/11/21. Following this activity, the insider holds 42,405 shares worth $307,544 as of recent close. Wall Street’s most bullish The Home Depot, Inc. (NYSE:HD) analysts are predicting the share price to blow past $230 per share during the next 12 months. The current median share price forecast by them is $200, suggesting that the stock could increase 7.3% in that time frame. The average price target of $201.23 calls for a nearly 7.96% increase in the stock price.
When looking at valuations, The Home Depot, Inc. (HD) has a pricey P/E of 19.81x as compared to industry average of 18.37x. Moreover, it trades for 18.15 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 160.68x price/book and 2x price/sales. Compared to others, The Home Depot, Inc. is in a different league with regards to profitability, having net margins of 10%. To put some perspective around this, the industry’s average net margin is 97.08%. HD’s ROE is 652.6%, which is also considerably better than the industry’s ROE of 133.23%. It’s also very liquid in the near term, with a current ratio of 1.1. The stock has a debt/capital of 19.53.
Shares of The Home Depot, Inc. (HD) have gained 2.8% since the company’s last earnings report. Over the past 12 fiscal quarters, The Home Depot, Inc. (NYSE:HD) has topped consensus earnings estimates in 12 quarters (100%), missed earnings in 0 quarters (0%), whereas at 0 occasion EPS met analyst expectations. HD last reported earnings on November 13, 2018 when it released Oct-18 results that exceeded expectations. The company raked in $2.51 per share, -77.18% change on the same period last year. That was better than consensus for $2.26. Revenue for the recent quarter stood at $26.3 billion, up 5% on last year and below the $26.26 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $25.93 billion to $26.7 billion, which should be compared with $26.03 billion generated last year. EPS is seen in a range of $2.17 to $2.35, against the $2.04 reported a year ago.