Could Home Depot Inc Change Direction After Today’s Bullish Options Activity?

 Could Home Depot Inc Change Direction After Today's Bullish Options Activity?

In today’s session Home Depot Inc (HD) registered an unusually high (442) contracts volume of call trades. Someone, most probably a professional was a very active buyer of the January, 2017 call, expecting serious HD increase. With 442 contracts traded and 20734 open interest for the Jan, 17 contract, it seems this is a quite bullish bet. The option with symbol: HD170120C00120000 closed last at: $4.95 or 9.2% down. About 1.68 million shares traded hands. Home Depot Inc (NYSE:HD) has declined 10.16% since April 5, 2016 and is downtrending. It has underperformed by 12.11% the S&P500.

Analysts await Home Depot Inc (NYSE:HD) to report earnings on November, 15. They expect $1.58 EPS, up 17.04% or $0.23 from last year’s $1.35 per share. HD’s profit will be $1.92B for 19.61 P/E if the $1.58 EPS becomes a reality. After $1.97 actual EPS reported by Home Depot Inc for the previous quarter, Wall Street now forecasts -19.80% negative EPS growth.

Home Depot Inc (NYSE:HD) Ratings Coverage

Out of 21 analysts covering The Home Depot Inc. (NYSE:HD), 14 rate it a “Buy”, 0 “Sell”, while 7 “Hold”. This means 67% are positive. $156 is the highest target while $106 is the lowest. The $140.98 average target is 13.78% above today’s ($123.91) stock price. The Home Depot Inc. has been the topic of 43 analyst reports since August 19, 2015 according to StockzIntelligence Inc. Nomura upgraded the stock to “Buy” rating in Thursday, June 23 report. The rating was reinitiated by Stifel Nicolaus with “Buy” on Tuesday, August 2. On Friday, May 13 the stock rating was maintained by Jefferies with “Buy”. The rating was downgraded by PiperJaffray on Monday, October 31 to “Neutral”. Longbow maintained the stock with “Buy” rating in Friday, August 14 report. Cantor Fitzgerald maintained the stock with “Hold” rating in Monday, August 17 report. The firm has “Sell” rating by SEB Equity Research given on Tuesday, August 25. UBS maintained the stock with “Buy” rating in Wednesday, November 18 report. Vetr downgraded Home Depot Inc (NYSE:HD) on Saturday, August 29 to “Buy” rating. The stock of Home Depot Inc (NYSE:HD) earned “Outperform” rating by RBC Capital Markets on Wednesday, November 18.

According to Zacks Investment Research, “Home Depot is the one of world’s largest home improvement retailer. The company offers a level of service unprecedented among warehouse-style retailers. Home Depot stores cater to do-it-yourselfers, as well as home improvement, construction and building maintenance professionals. The Home Depot currently operates in the USA, Canada, Chile, Puerto Rico, and Argentina. The company also operates EXPO Design Centers across the U.S. and Villager’s Hardware in New Jersey.”

Insitutional Activity: The institutional sentiment increased to 0.92 in 2016 Q2. Its up 0.05, from 0.87 in 2016Q1. The ratio is positive, as 63 funds sold all Home Depot Inc shares owned while 638 reduced positions. 103 funds bought stakes while 543 increased positions. They now own 870.00 million shares or 6.34% less from 928.89 million shares in 2016Q1.
Wellington Shields & Limited Liability accumulated 0.13% or 1,696 shares. Bokf Na holds 0.45% of its portfolio in Home Depot Inc (NYSE:HD) for 99,459 shares. Rosenblum Silverman Sutton S F Ca last reported 35,225 shares in the company. Riggs Asset Managment Inc has invested 0.03% of its portfolio in Home Depot Inc (NYSE:HD). Iron Ltd Liability owns 2,258 shares or 0.37% of their US portfolio. Crystal Rock Cap Mgmt owns 77,551 shares or 7.33% of their US portfolio. Moreover, Zweig Advisers Ltd has 1.37% invested in Home Depot Inc (NYSE:HD) for 58,000 shares. First Commercial Bank Na reported 4,466 shares or 0.11% of all its holdings. Stephens Ar holds 0.13% of its portfolio in Home Depot Inc (NYSE:HD) for 22,739 shares. Bancorpsouth has invested 0.03% of its portfolio in Home Depot Inc (NYSE:HD). Guardian Cap Advsrs Limited Partnership last reported 11,695 shares in the company. Point72 Asset Mgmt Lp owns 48,000 shares or 0.04% of their US portfolio. Joel Isaacson & Lc reported 8,563 shares or 0.23% of all its holdings. State Treasurer State Of Michigan has invested 1.39% of its portfolio in Home Depot Inc (NYSE:HD). Lenox Wealth Advsrs has 0.02% invested in the company for 605 shares.

Insider Transactions: Since May 18, 2016, the stock had 1 insider buy, and 8 sales for $41.51 million net activity. 22,996 shares with value of $3.02M were sold by Lennie William G. on Thursday, May 19. The insider Menear Craig A sold 46,227 shares worth $6.07M. Shares for $4.00 million were sold by Carey Matt on Wednesday, August 17. $1.35M worth of shares were sold by Decker Edward P. on Friday, August 19. The insider HOLIFIELD MARK sold 43,026 shares worth $5.64 million. Hewett Wayne M. bought $46,386 worth of Home Depot Inc (NYSE:HD) on Tuesday, May 31. $1.59 million worth of Home Depot Inc (NYSE:HD) shares were sold by Roseborough Teresa Wynn.

The Home Depot, Inc. is a home improvement retailer. The company has a market cap of $150.94 billion. The Firm sells an assortment of building materials, home improvement products, and lawn and garden products, and provides various services. It has a 20.9 P/E ratio. The Home Depot stores serve three primary customer groups: do-it-yourself (DIY) customers, do-it-for-me (DIFM) clients and professional customers.

HD Company Profile

The Home Depot, Inc. (The Home Depot), incorporated on June 29, 1978, is a home improvement retailer. The Firm sells an assortment of building materials, home improvement products, and lawn and garden products, and provides various services. The Home Depot stores average approximately 104,000 square feet of enclosed space, with over 24,000 additional square feet of outside garden area. The Home Depot stores serve three primary customer groups: do-it-yourself (DIY) customers, do-it-for-me (DIFM) clients and professional customers. The Firm has approximately 2,270 stores located throughout the United States, including the Commonwealth of Puerto Rico and the territories of the United States Virgin Islands and Guam, Canada and Mexico.

More notable recent Home Depot Inc (NYSE:HD) news were published by: Foxbusiness.com which released: “The Number That Matters Most to Home Depot Inc.’s Business” on November 05, 2016, also Fool.com with their article: “A Close Look at Home Depot Inc’s Dividend” published on October 24, 2016, Fool.com published: “2 Ways Home Depot Inc Is Losing to the Competition” on October 18, 2016. More interesting news about Home Depot Inc (NYSE:HD) were released by: Fool.com and their article: “Has Home Depot Inc.’s Growth Just Begun?” published on October 10, 2016 as well as Forbes.com‘s news article titled: “December 2nd Options Now Available For Home Depot (HD)” with publication date: October 14, 2016.

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