Fintel reports that on August 16, 2023, Morgan Stanley maintained coverage of Home Depot (NYSE:HD) with a Overweight recommendation.
Analyst Price Forecast Suggests 2.49% Downside
As of August 1, 2023, the average one-year price target for Home Depot is 323.87. The forecasts range from a low of 242.40 to a high of $388.50. The average price target represents a decrease of 2.49% from its latest reported closing price of 332.14.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Home Depot is 164,075MM, an increase of 5.94%. The projected annual non-GAAP EPS is 17.47.
Home Depot Declares $2.09 Dividend
On May 18, 2023 the company declared a regular quarterly dividend of $2.09 per share ($8.36 annualized). Shareholders of record as of June 1, 2023 received the payment on June 15, 2023. Previously, the company paid $2.09 per share.
At the current share price of $332.14 / share, the stock's dividend yield is 2.52%.
Looking back five years and taking a sample every week, the average dividend yield has been 2.38%, the lowest has been 1.59%, and the highest has been 3.69%. The standard deviation of yields is 0.34 (n=236).
The current dividend yield is 0.40 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 0.52. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.39%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 4655 funds or institutions reporting positions in Home Depot. This is a decrease of 45 owner(s) or 0.96% in the last quarter. Average portfolio weight of all funds dedicated to HD is 0.79%, a decrease of 3.92%. Total shares owned by institutions decreased in the last three months by 1.45% to 789,234K shares. 
The put/call ratio of HD is 1.10, indicating a bearish outlook.
What are Other Shareholders Doing?
Capital World Investors holds 39,524K shares representing 3.93% ownership of the company. In it's prior filing, the firm reported owning 39,172K shares, representing an increase of 0.89%. The firm decreased its portfolio allocation in HD by 8.59% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 31,550K shares representing 3.14% ownership of the company. In it's prior filing, the firm reported owning 30,980K shares, representing an increase of 1.81%. The firm decreased its portfolio allocation in HD by 12.14% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 23,782K shares representing 2.37% ownership of the company. In it's prior filing, the firm reported owning 23,666K shares, representing an increase of 0.49%. The firm decreased its portfolio allocation in HD by 12.93% over the last quarter.
Geode Capital Management holds 19,135K shares representing 1.90% ownership of the company. In it's prior filing, the firm reported owning 19,008K shares, representing an increase of 0.66%. The firm decreased its portfolio allocation in HD by 13.00% over the last quarter.
Wellington Management Group Llp holds 14,596K shares representing 1.45% ownership of the company. In it's prior filing, the firm reported owning 15,719K shares, representing a decrease of 7.69%. The firm decreased its portfolio allocation in HD by 86.84% over the last quarter.
Home Depot Background Information
(This description is provided by the company.)
The Home Depot is the world's largest home improvement specialty retailer, with 2,296 retail stores in all 50 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. In fiscal 2019, The Home Depot had sales of $110.2 billion and earnings of $11.2 billion. The company employs more than 400,000 associates. The Home Depot's stock is traded on the New York Stock Exchange and is included in the Dow Jones industrial average and Standard & Poor's 500 index.
Additional reading:
- The Home Depot Announces Second Quarter Fiscal 2023 Results; Reaffirms Fiscal 2023 Guidance; Announces $15 Billion Share Repurchase Authorization
- The Home Depot Recommends Shareholders Reject “Mini-Tender” Offer by TRC Capital Investment Corporation
- Separation Agreement between Jeffery G. Kinnaird and The Home Depot, Inc., dated April 17, 2023
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