Investment analysts at BNP Paribas Exane have raised their price target for Home Depot (NYSE: HD) from $353.00 to $355.00, as announced in a report released on November 24, 2023. The firm currently maintains a “neutral” rating on the stock, which suggests a modest potential upside of 0.10% from its current trading price.
Several other financial institutions have also weighed in on Home Depot’s stock. Sanford C. Bernstein reiterated a “market perform” rating with a price target of $362.00 in a report on November 24. In contrast, Morgan Stanley lowered its price objective from $430.00 to $395.00 and kept an “overweight” rating on November 19. Mizuho increased their target price from $435.00 to $450.00, assigning an “outperform” rating on August 20. Additionally, the Goldman Sachs Group cut its target from $444.00 to $406.00 while maintaining a “buy” rating, also on November 19. Lastly, JPMorgan Chase & Co. reduced their target from $444.00 to $423.00, keeping an “overweight” stance on the stock.
Analyst coverage of Home Depot is extensive, with 21 equity research analysts rating the stock as a Buy, 11 assigning a Hold rating, and 2 issuing a Sell rating. According to data from MarketBeat.com, the consensus rating for Home Depot stands at “Moderate Buy,” with an average price target of $403.50.
Stock Performance and Financial Metrics
On Friday, November 24, Home Depot’s shares opened at $354.65. The company has experienced a 12-month low of $326.31 and a high of $436.36. With a market capitalization of $353.05 billion, Home Depot has a price-to-earnings (P/E) ratio of 24.17 and a P/E growth (P/E/G) ratio of 6.25. The stock’s beta is measured at 1.06, indicating moderate volatility.
The company’s moving averages reflect ongoing trends, with the 50-day moving average at $373.06 and the 200-day moving average at $379.79. Home Depot’s liquidity ratios show a quick ratio of 0.29, a current ratio of 1.05, and a debt-to-equity ratio of 3.82.
Home Depot recently reported its earnings on November 18, revealing an earnings per share (EPS) of $3.74 for the quarter, which fell short of the consensus estimate of $3.83 by $0.09. The company achieved a net margin of 8.77% and a return on equity of 160.74%. Revenue for the quarter reached $41.35 billion, surpassing analyst expectations of $41.06 billion, and marking a 2.8% increase compared to the same quarter last year. Home Depot anticipates an EPS guidance of 14.478 for the fiscal year 2025, with analysts expecting an average EPS of 15.13 for the current year.
Insider Trading and Institutional Investments
In related news, executive vice president William D. Bastek sold 2,303 shares of Home Depot on September 12, 2023, at an average price of $423.12, amounting to a total transaction of approximately $974,445.36. Following this transaction, Bastek retained 24,235 shares in the company, valued at around $10,254,313.20. This sale represents an 8.68% reduction in his ownership stake. The transaction was reported to the Securities and Exchange Commission (SEC).
Institutional trading of Home Depot has seen significant activity. Brighton Jones LLC increased its holdings by 36.5% in the fourth quarter, acquiring an additional 7,203 shares, bringing their total to 26,918 shares valued at approximately $10.47 million. United Bank raised its stake by 14.9% in the first quarter, now holding 5,023 shares valued at $1.84 million. Chicago Partners Investment Group LLC boosted its position by 39.6%, now owning 10,312 shares worth about $3.74 million. Ontario Teachers Pension Plan Board increased its holdings by 35.4%, and Y.D. More Investments Ltd raised its position by 8.7% during the same period. Currently, institutional investors own 70.86% of Home Depot’s stock.
Home Depot, operating as a leading home improvement retailer, offers a diverse range of building materials, home improvement products, and installation services across the United States and internationally.
