Home Depot (NYSE:HD) Shares Down 3% – Should You Sell?

The Home Depot, Inc. (NYSE:HD)’s share price fell 3% on Wednesday . The company traded as low as $402.12 and last traded at $403.95. 870,661 shares traded hands during mid-day trading, a decline of 70% from the average session volume of 2,862,768 shares. The stock had previously closed at $416.36.

Analyst Upgrades and Downgrades

Several analysts have issued reports on the stock. Stifel Nicolaus raised their price objective on shares of Home Depot from $375.00 to $400.00 and gave the stock a “hold” rating in a research note on Monday, November 11th. TD Cowen upped their price objective on Home Depot from $440.00 to $460.00 and gave the company a “buy” rating in a research report on Monday, October 28th. Truist Financial lifted their target price on Home Depot from $465.00 to $467.00 and gave the stock a “buy” rating in a research report on Tuesday. Mizuho boosted their target price on shares of Home Depot from $435.00 to $440.00 and gave the company an “outperform” rating in a research note on Wednesday, November 13th. Finally, Bank of America upped their target price on shares of Home Depot from $425.00 to $450.00 and gave the stock a “buy” rating in a research note on Wednesday, November 13th. One investment analyst has rated the stock with a sell rating, seven have issued a hold rating and twenty-three have given a buy rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $428.85.

Home Depot Price Performance

The company has a quick ratio of 0.31, a current ratio of 1.13 and a debt-to-equity ratio of 8.65. The firm has a market cap of $403.50 billion, a PE ratio of 27.60, a price-to-earnings-growth ratio of 4.22 and a beta of 1.05. The stock has a 50 day moving average price of $405.62 and a two-hundred day moving average price of $395.38.

Home Depot (NYSE:HD) last released its earnings results on Tuesday, November 12th. The home improvement retailer reported $3.78 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.64 by $0.14. Home Depot had a return on equity of 452.60% and a net margin of 9.45%. The firm had revenue of $40.22 billion for the quarter, compared to the consensus estimate of $39.31 billion. During the same period in the prior year, the firm earned $3.81 EPS. The firm’s revenue was up 6.6% on a year-over-year basis. As a group, equities analysts expect that The Home Depot, Inc. will post 15.12 earnings per share for the current year.

Home Depot Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, December 12th. Investors of record on Wednesday, November 27th were issued a $2.25 dividend. The ex-dividend date was Wednesday, November 27th. This represents a $9.00 annualized dividend and a yield of 2.22%. Home Depot’s dividend payout ratio (DPR) is presently 61.14%.

Insiders Place Their Bets

In related news, EVP Timothy A. Hourigan sold 16,004 shares of the firm’s stock in a transaction dated Monday, November 18th. The shares were sold at an average price of $409.52, for a total value of $6,553,958.08. Following the transaction, the executive vice president now directly owns 77,475 shares of the company’s stock, valued at approximately $31,727,562. This trade represents a 17.12 % decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, EVP Ann Marie Campbell sold 100 shares of the business’s stock in a transaction that occurred on Wednesday, November 20th. The stock was sold at an average price of $402.58, for a total value of $40,258.00. Following the sale, the executive vice president now owns 12,465 shares of the company’s stock, valued at approximately $5,018,159.70. This trade represents a 0.80 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 38,188 shares of company stock valued at $15,624,585. 0.10% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the company. Synergy Asset Management LLC purchased a new stake in Home Depot in the 4th quarter valued at $26,000. Wingate Wealth Advisors Inc. purchased a new stake in shares of Home Depot in the fourth quarter valued at about $28,000. Bradley & Co. Private Wealth Management LLC acquired a new stake in Home Depot during the fourth quarter worth about $32,000. Legacy Investment Solutions LLC purchased a new position in Home Depot during the third quarter worth about $41,000. Finally, Marshall Investment Management LLC purchased a new position in Home Depot during the fourth quarter worth about $41,000. 70.86% of the stock is owned by institutional investors and hedge funds.

About Home Depot

The Home Depot, Inc operates as a home improvement retailer in the United States and internationally. It sells various building materials, home improvement products, lawn and garden products, and décor products, as well as facilities maintenance, repair, and operations products. The company also offers installation services for flooring, water heaters, bath, garage doors, cabinets, cabinet makeovers, countertops, sheds, furnaces and central air systems, and windows.