On May 16, 2023 at 10:30:30 ET an unusually large $2,051.49K block of Put contracts in Home Depot (HD) was sold, with a strike price of $250.00 / share, expiring in 66 day(s) (on July 21, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 6.32 sigmas above the mean, placing it in the 100.00th percentile of all recent large trades made in HD options.

This trade was first picked up on Fintel’s real time Options Flow tool, where unusual option trades are highlighted.

What is the Fund Sentiment?

There are 4700 funds or institutions reporting positions in Home Depot. This is a decrease of 30 owner(s) or 0.63% in the last quarter. Average portfolio weight of all funds dedicated to HD is 0.82%, a decrease of 0.53%. Total shares owned by institutions decreased in the last three months by 4.55% to 800,866K shares. The put/call ratio of HD is 1.36, indicating a bearish outlook.

Analyst Price Forecast Suggests 15.20% Upside

As of May 11, 2023, the average one-year price target for Home Depot is 332.39. The forecasts range from a low of 250.48 to a high of $420.00. The average price target represents an increase of 15.20% from its latest reported closing price of 288.54.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Home Depot is 164,075MM, an increase of 4.24%. The projected annual non-GAAP EPS is 17.47.

What are Other Shareholders Doing?

Capital World Investors holds 39,524K shares representing 3.90% 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 30,980K shares representing 3.06% ownership of the company. In it’s prior filing, the firm reported owning 30,540K shares, representing an increase of 1.42%. The firm increased its portfolio allocation in HD by 7.23% over the last quarter.

VFINX – Vanguard 500 Index Fund Investor Shares holds 23,666K shares representing 2.34% ownership of the company. In it’s prior filing, the firm reported owning 23,298K shares, representing an increase of 1.55%. The firm increased its portfolio allocation in HD by 7.12% over the last quarter.

Geode Capital Management holds 19,135K shares representing 1.89% 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.

Bank Of America holds 16,840K shares representing 1.66% ownership of the company. In it’s prior filing, the firm reported owning 15,340K shares, representing an increase of 8.91%. The firm decreased its portfolio allocation in HD by 76.41% over the last quarter.

Home Depot Declares $2.09 Dividend

On February 21, 2023 the company declared a regular quarterly dividend of $2.09 per share ($8.36 annualized). Shareholders of record as of March 9, 2023 received the payment on March 23, 2023. Previously, the company paid $1.90 per share.

At the current share price of $288.54 / share, the stock’s dividend yield is 2.90%.

Looking back five years and taking a sample every week, the average dividend yield has been 2.35%, the lowest has been 1.59%, and the highest has been 3.69%. The standard deviation of yields is 0.34 (n=237).

The current dividend yield is 1.61 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 0.49. 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.

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.

Key filings for this company:

• UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K

This article originally appeared on Fintel

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