HD Supply (HDS) Cut to Hold at Zacks Investment Research

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Zacks Investment Research downgraded shares of HD Supply (NASDAQ:HDS) from a buy rating to a hold rating in a research report report published on Wednesday.

According to Zacks, “HD Supply Holdings, Inc. is engaged in industrial distribution primarily in North America. It operates in four segments: Facilities Maintenance, Waterworks, Power Solutions and White Cap. Facilities Maintenance distributes maintenance, repair and operations products, provides value-add services and fabricates custom products to multifamily, hospitality, healthcare and institutional facilities. Waterworks distributes complete lines of water and wastewater transmission products, serving contractors and municipalities. Power Solutions distributes electrical transmission and distribution products, power plant MRO supplies and smart-grid products, arranges materials management and procurement outsourcing for the power generation and distribution industries. White Cap distributes specialized hardware, tools, engineered materials and safety products to non-residential and residential contractors. HD Supply Holdings, Inc. is based in Atlanta, Georgia. “

Several other equities research analysts have also recently issued reports on HDS. BidaskClub upgraded shares of HD Supply from a hold rating to a buy rating in a research report on Thursday, January 31st. Robert W. Baird upgraded shares of HD Supply from a neutral rating to an outperform rating and set a $39.96 price objective on the stock in a research report on Friday, January 25th. Buckingham Research assumed coverage on shares of HD Supply in a research report on Thursday, December 20th. They set a buy rating and a $44.00 price objective on the stock. Barclays reduced their price objective on shares of HD Supply from $51.00 to $48.00 and set an overweight rating on the stock in a research report on Monday, December 17th. Finally, Raymond James reduced their price objective on shares of HD Supply from $48.00 to $45.00 and set an outperform rating on the stock in a research report on Thursday, December 6th. Four research analysts have rated the stock with a hold rating and twelve have issued a buy rating to the stock. HD Supply presently has an average rating of Buy and a consensus target price of $46.60.

NASDAQ HDS opened at $42.36 on Wednesday. HD Supply has a 12 month low of $34.49 and a 12 month high of $46.29. The company has a market cap of $7.56 billion, a price-to-earnings ratio of 18.34, a PEG ratio of 0.82 and a beta of 1.27. The company has a current ratio of 2.05, a quick ratio of 1.11 and a debt-to-equity ratio of 1.18.

HD Supply (NASDAQ:HDS) last released its earnings results on Tuesday, December 4th. The industrial products company reported $1.00 EPS for the quarter, topping analysts’ consensus estimates of $0.98 by $0.02. HD Supply had a net margin of 5.07% and a return on equity of 38.09%. The company had revenue of $1.61 billion for the quarter, compared to analysts’ expectations of $1.59 billion. During the same quarter last year, the business earned $0.80 EPS. The firm’s revenue was up 17.7% compared to the same quarter last year. As a group, analysts expect that HD Supply will post 3.36 earnings per share for the current year.

In related news, Director Jana Partners Llc sold 1,567,262 shares of the business’s stock in a transaction on Tuesday, January 8th. The shares were sold at an average price of $37.85, for a total value of $59,320,866.70. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Chairman Joseph J. Deangelo purchased 50,000 shares of HD Supply stock in a transaction that occurred on Friday, December 14th. The stock was acquired at an average price of $36.99 per share, for a total transaction of $1,849,500.00. Following the transaction, the chairman now directly owns 292,618 shares of the company’s stock, valued at approximately $10,823,939.82. The disclosure for this purchase can be found here. In the last quarter, insiders have sold 3,251,545 shares of company stock worth $123,065,335. Company insiders own 0.72% of the company’s stock.

A number of institutional investors and hedge funds have recently made changes to their positions in HDS. Ledyard National Bank bought a new stake in HD Supply in the fourth quarter worth $28,000. Penserra Capital Management LLC increased its position in HD Supply by 58.4% in the fourth quarter. Penserra Capital Management LLC now owns 944 shares of the industrial products company’s stock worth $35,000 after purchasing an additional 348 shares during the last quarter. Legacy Financial Advisors Inc. increased its position in HD Supply by 46.3% in the fourth quarter. Legacy Financial Advisors Inc. now owns 977 shares of the industrial products company’s stock worth $37,000 after purchasing an additional 309 shares during the last quarter. Taylor Hoffman Wealth Management bought a new stake in HD Supply in the fourth quarter worth $37,000. Finally, Truewealth LLC increased its position in HD Supply by 55.1% in the fourth quarter. Truewealth LLC now owns 1,273 shares of the industrial products company’s stock worth $48,000 after purchasing an additional 452 shares during the last quarter. Institutional investors own 97.69% of the company’s stock.

About HD Supply

HD Supply Holdings, Inc operates as an industrial distributor in North America. It operates through two segments, Facilities Maintenance, and Construction & Industrial. The Facilities Maintenance segment offers electrical and lighting items, plumbing, appliances, janitorial supplies, hardware, kitchen and bath cabinets, window coverings, textiles and guest amenities, healthcare maintenance, and water and wastewater treatment products, as well as heating, ventilating, and air conditioning products.

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