Technical Metrics Suggest The Home Depot, Inc. (HD) Is Ready To Lose Shine

The stock is lingering around the initial support level of $212.47. After this, the following support is at the zone of $210.94. Up until the time the HD stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 30.73 on the daily chart, and this may be a cause for comfort. In case the price goes below $210.94 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $215.99 level may cause a pull-back move approaching $217.98 mark.

The Home Depot, Inc. (HD) is most likely going to rise 11.73 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $263-month high price target. This represents a whopping 22.9 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $246, which means a return possibility of 14.95 percent in comparison with the closing price of the stock of $214 on December 03. The lowest price set for the stock is $192 — just above -10.28 percent from HD share price now.

Let’s take a glimpse at some insider activity at The Home Depot, Inc. (NYSE:HD) and observe the pattern. The earliest insider trade happened on 08/29/2019. Decker Edward P. parted with a total of 22.91 thousand shares of the firm at average share price of $227.15. The total amount for the sale was set at $5.2 million. On completing this exchange, the EVP, Merchandising account balance was 64.43 thousand shares. The stock lost -4.2 percent from that insider sale. On 08/22/2019, Campbell Ann Marie, EVP – U.S. Stores, did a sale of 14.69 thousand shares at a price of $220.92 per share. This got rid of 3.25 million shares from the insider’s fortune and the stock experienced a -1.49 percent retreat in price since the news became public. This exchange saw 54.11 thousand shares get out from the EVP – U.S. Stores account. On 08/22/2019, EVP, Outside Sales and Service Lennie William G. recorded a sale transaction valued at $2.02 million. The sale at $220.05 a share has eliminated 9.2 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed -1.1 percent decrease since the transaction reporting date. The company insider is left with 33.82 thousand shares remaining in the account. Carey Matt, who works as EVP & CIO at the company, performed a sale of 22.7 thousand shares in a transaction worth $5 million. The disposal recorded on 08/21/2019 was priced at $220.43 per share. The stock price plunged -1.27 percent since the transaction. Carey Matt currently holds a stake of 75.15 thousand in HD stock which is worth $16.08 million after the insider selling.

On December 03, 2019, The Home Depot, Inc. (NYSE:HD) shares lost -1.66% or -3.62 points to close at $214 with a heavy trading volume of 6.502 million shares. It opened the trading session at $216.45, the shares rose to $216.45 and dropped to $212.93, the range by which the price of stock traded the whole day. The company now has a market cap of $236 billion and currently has 1.1 billion outstanding shares. The Home Depot, Inc. (HD) stock has plunged -9.83 percent of market value in 21 trading days.

Stock analysts at Jefferies lifted target price for The Home Depot, Inc. (NYSE:HD) shares but reaffirmed their Buy recommendation for the stock in their opinion released on November 15. The price target has been increased from $246 to $268. Edward Jones analysts have downgraded their rating of HD shares from Buy to Hold in a separate flash note to investors on November 11.

HD stock’s trailing 3-year beta is 0.99, meaning there will be a lower rate of return, although posing a lower risk. The part of a firm’s profit given to each outstanding share of regular stock was $10.09 share in the trailing 52 weeks. The stock’s value surged 24.55 percent year to date (YTD) compared to a rise of 18.68 percent in 52 week’s period. The firm’s shares are still trading -10.58 percent below its 1-year high of $239.31 and 35.37 percent up from 52-week low of $158.09. The average consensus ranking on the company is 2.2, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.

The Home Depot, Inc. (HD) shares are trading at a P/E ratio of 21.3 times earnings posted in the trailing 12 months. The industry HD deals with has an average P/E of 23.8. Its P/B ratio is standing at 0X compared to the 62.3 industry average. It is additionally sporting a 2.1 on the Price-to-Sales ratio, compared to the industry’s P/S average of 1.8. The Home Depot, Inc. has a 34.1% gross profit margin, with its operating margin around 14.3%. Alongside this, the company’s net profit margin currently stands at 10%.

Past records have indicated that shares in The Home Depot, Inc. rose on 23 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of HD’s Q4 earnings on February 25. Analysts are predicting revenue to suffer decline of -2.6 percent to $25.8B in the financial fourth quarter, while EPS will soar by about -6.22 percent to $2.11 per share. In the last quarter, it earnings of $3.17 per share came better than the $2.18963, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $26.49B, missing the $26.58B analysts had expected. Earnings are seen to rise by 30.5 percent this year, 7.94 percent in the coming year and the trend continues by 8.32 percent every year in the next 5 years.