Home Depot (NYSE:HD) Shares Gap Down on Disappointing Earnings

The Home Depot, Inc. (NYSE:HD)’s stock price gapped down before the market opened on Tuesday following a dissappointing earnings announcement. The stock had previously closed at $358.03, but opened at $339.98. Home Depot shares last traded at $343.6070, with a volume of 3,115,759 shares traded.

The home improvement retailer reported $3.74 earnings per share for the quarter, missing analysts’ consensus estimates of $3.84 by ($0.10). The firm had revenue of $41.35 billion during the quarter, compared to the consensus estimate of $41.06 billion. Home Depot had a return on equity of 193.99% and a net margin of 8.86%.The business’s quarterly revenue was up 2.8% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $3.78 EPS. Home Depot has set its FY 2025 guidance at 14.478-14.478 EPS.

Home Depot Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 18th. Stockholders of record on Thursday, September 4th were paid a $2.30 dividend. The ex-dividend date of this dividend was Thursday, September 4th. This represents a $9.20 dividend on an annualized basis and a dividend yield of 2.7%. Home Depot’s dividend payout ratio is 62.50%.

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on the stock. Gordon Haskett decreased their target price on shares of Home Depot from $400.00 to $345.00 in a research report on Monday, November 10th. Telsey Advisory Group reaffirmed an “outperform” rating and set a $455.00 price objective on shares of Home Depot in a research note on Thursday, November 13th. Truist Financial lowered their target price on Home Depot from $454.00 to $421.00 and set a “buy” rating for the company in a research note on Friday, November 7th. Robert W. Baird increased their target price on Home Depot from $425.00 to $450.00 and gave the company an “outperform” rating in a report on Wednesday, August 20th. Finally, Morgan Stanley lifted their price target on Home Depot from $415.00 to $430.00 and gave the stock an “overweight” rating in a research note on Wednesday, August 20th. One research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $429.33.

Insider Transactions at Home Depot

In other news, EVP Angie Brown sold 1,000 shares of the business’s stock in a transaction that occurred on Wednesday, August 20th. The stock was sold at an average price of $404.07, for a total transaction of $404,070.00. Following the transaction, the executive vice president directly owned 3,837 shares of the company’s stock, valued at approximately $1,550,416.59. The trade was a 20.67% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP William D. Bastek sold 2,303 shares of the firm’s stock in a transaction on Friday, September 12th. The stock was sold at an average price of $423.12, for a total value of $974,445.36. Following the completion of the sale, the executive vice president directly owned 24,235 shares of the company’s stock, valued at $10,254,313.20. The trade was a 8.68% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 48,835 shares of company stock worth $19,623,432. Corporate insiders own 0.10% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in HD. Mainstay Capital Management LLC ADV bought a new position in Home Depot during the second quarter valued at approximately $263,000. WealthPlan Investment Management LLC bought a new stake in shares of Home Depot during the 2nd quarter valued at about $1,149,000. Tower View Wealth Management LLC increased its position in shares of Home Depot by 4.3% during the 2nd quarter. Tower View Wealth Management LLC now owns 16,196 shares of the home improvement retailer’s stock valued at $5,938,000 after purchasing an additional 671 shares during the last quarter. Ransom Advisory Ltd purchased a new position in shares of Home Depot in the first quarter worth approximately $3,851,000. Finally, Shell Asset Management Co. grew its position in Home Depot by 45.2% during the second quarter. Shell Asset Management Co. now owns 48,175 shares of the home improvement retailer’s stock valued at $17,663,000 after buying an additional 15,002 shares during the period. Hedge funds and other institutional investors own 70.86% of the company’s stock.

Home Depot Trading Down 3.3%

The firm has a market capitalization of $344.61 billion, a PE ratio of 23.38, a PEG ratio of 3.59 and a beta of 1.00. The company has a quick ratio of 0.34, a current ratio of 1.15 and a debt-to-equity ratio of 4.31. The stock’s fifty day simple moving average is $391.91 and its 200 day simple moving average is $382.00.

Home Depot Company Profile

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.