0
0
Decoding Home Depot’s Options Activity: What’s the Big Picture?
Financial giants have made a conspicuous bearish move on Home Depot. Our analysis of the options history for Home Depot HD revealed 15 unusual trades.
Delving into the details, we found that 26% of traders were bullish, while 73% showed bearish tendencies. Out of all the trades we spotted, 2 were puts, with a value of $79,027, and 13 were calls, valued at $1,876,495.
Projected Price Targets
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $150.0 to $305.0 for Home Depot over the last 3 months.
Volume & Open Interest Trends
Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for Home Depot’s options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Home Depot’s whale trades within a strike price range from $150.0 to $305.0 in the last 30 days.
Home Depot 30-Day Option Volume & Interest SnapshotNoteworthy Options Activity: Symbol PUT/CALL Trade Type Sentiment Exp. Date Strike Price Total Trade Price Open Interest Volume HD CALL SWEEP BULLISH 01/17/25 $300.00 $294.1K 2.1K 517 HD CALL SWEEP BEARISH 01/17/25 $300.00 $286.0K 2.1K 162 HD CALL SWEEP BEARISH 01/17/25 $300.00 $226.0K 2.1K 337 HD CALL SWEEP BEARISH 01/17/25 $300.00 $212.0K 2.1K 275 HD CALL SWEEP BEARISH 01/17/25 $300.00 $166.0K 2.1K 96 About Home Depot
Home Depot is the world’s largest home improvement specialty retailer, operating more than 2,300 warehouse-format stores offering more than 30,000 products in-store and 1 million products online in the United States, Canada, and Mexico. Its stores offer numerous building materials, home improvement products, lawn and garden products, and decor products and provide various services, including home improvement installation services and tool and equipment rentals. The acquisition of distributor Interline Brands in 2015 allowed Home Depot to enter the maintenance, repair, and operations business, which has been expanded through the tie-up with HD Supply (2020). Moreover, the additions of the Company Store brought textile exposure to the lineup, while Redi Carpet added multifamily flooring.
After a thorough review of the options trading surrounding Home Depot, we move to examine the company in more detail. This includes an assessment of its current market status and performance.
Home Depot’s Current Market Status
- Trading volume stands at 328,738, with HD’s price down by -0.71%, positioned at $306.0.
- RSI indicators show the stock to be maybe approaching overbought.
- Earnings announcement expected in 91 days.
Professional Analyst Ratings for Home Depot
Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $327.2.
- An analyst from Telsey Advisory Group persists with their Market Perform rating on Home Depot, maintaining a target price of $325.
- Reflecting concerns, an analyst from Telsey Advisory Group lowers its rating to Market Perform with a new price target of $325.
- Consistent in their evaluation, an analyst from Truist Securities keeps a Buy rating on Home Depot with a target price of $340.
- An analyst from Stifel has decided to maintain their Hold rating on Home Depot, which currently sits at a price target of $306.
- An analyst from Guggenheim persists with their Buy rating on Home Depot, maintaining a target price of $340.
Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Home Depot options trades with real-time alerts from Benzinga Pro.
How Does the Home Depot Credit Card Work: Benefits and Rewards
How the Home Depot Credit Card Works
Home improvement isn’t cheap, but sometimes it becomes a “must do” instead of a “want to.” When that’s the case, a credit card from Home Depot might be just the ticket, especially for emergencies that come with a high price tag.
Home Depot offers a variety of credit cards, including consumer cards and company cards. On the consumer side, Home Depot offers its consumer credit card that can be used by individuals at its stores. This card comes with six months of 0% financing for a purchase of $299 or more.
Home Depot also offers commercial cards for contractors and businesses. Its commercial cards include a commercial charge card and a commercial line of credit account (due in full each month). Home Depot’s credit cards are issued by Citibank.
Key Takeaways
- Home Depot offers two credit cards for consumers.
- The basic Home Depot credit card offers a promotional 0% interest rate; after that, the annual percentage rate (APR) ranges to 29.99%.
- Home Depot also offers a project loan credit card, which functions more like a line of credit, with a finite amount of time to pay back a balance as high as $55,000.
The Home Depot Consumer Credit Card
Similar to other store cards, the Home Depot consumer credit card can be used to make everyday purchases at Home Depot. For purchases of more than $299, Home Depot offers 0% interest for six months and other promotions throughout the year. You can often find 12-month interest-free financing on appliances of $299 or more, 24 months of special financing on heating and air conditioning, and seasonal offers, such as $25 off snow blowers in the fall.
But beware of the promotions. The 0% financing makes for a great headline, but it’s only free if you follow the rules. Like any other “deferred interest” promotion, 0% for six months means that you have to pay the balance in full before the six months run out. If you’re even one day late, Citi (the bank behind the Home Depot credit cards) will charge you the full interest amount for the past six months—as if the promotion never existed.
Banks offer promotions like these because they know that consumers will have every intention of paying the balance long before the promotional period ends, but many will not. If you don’t have a history of consistently paying your credit card balances in full at the end of the month, it’s best to steer clear of promotional offers like these.
Note that store credit cards are “private label” and are unlike general use credit cards that have a MasterCard or Visa logo—store cards can only be used at the retailer, whereas general use cards can be used at any merchant that accepts them.
The Home Depot Project Loan Credit Card
If you’re planning a large renovation or building project, Home Depot has a project loan credit card with credit lines of up to $55,000. This card comes with no annual fees, up to 84 months to pay the balance in full, and a six-month buying window to purchase products.
The starting annual percentage rate (APR) is 7.42% (for the six-month payback) and the card comes with no perks. Think of it as a loan or a line of credit more than a credit card. Although the interest rate is much more attractive than the one on the consumer credit card, if you wait the full 84 months to pay the balance, your project becomes substantially more expensive.
The Home Depot Project Loan Card is more similar to a line of credit. It doesn’t offer any perks or rewards, but you can borrow up to $55,000 for home projects and renovations.
Rewards and Benefits
The Home Depot consumer credit card offers an initial zero-percent interest rate for six months on purchases above $299. As of February 2021, Home Depot is also offering various rewards to consumers, including discounts and statement credit for certain purchases. In particular, Home Depot is offering free stain and 5% statement credit for certain pergolas and pavilions, as well as up to $500 off and 5% statement credit for particular sheds and garages.
Where Can Someone Get the Home Depot Credit Card?
Those interested can apply for the Home Depot credit card on their website. As well, the card can be applied for in stores. The decision process for both is generally instant, but it can take up to 10 days to receive the card.
What Kind of Credit Is Required for the Home Depot Credit Card?
The requirements for the Home Depot card are not laid out, but note, that the credit requirements are generally more lenient for store cards versus regular credit cards. As with most store credit cards, the credit needed is generally fair to good.
Where Can the Home Depot Credit Card Be Used?
The Home Depot credit card, which is a private label card, can be used online or in Home Depot stores. Note that Home Depot’s two consumer credit cards cannot be used at other stores or retailers, as it is not general-use credit card.
Alternatives to the Home Depot Credit Card
If you’re not a contractor receiving discounts or benefits for brand loyalty, then many individuals may instead opt to shop at Lowe’s—one of the major Home Depot competitors. Lowe’s offers a consumer store-only card too, as well as cards for contractors. The Lowe’s credit card, also called the Lowe’s Advantage Card, comes with an APR of 28.99% and an introductory rate of 9.99% for 84 months on purchases above $2,000.
Terms and Conditions of the Home Depot Credit Card
The Home Depot card offers an APR of 29.99%. The card comes with the standard 25-day grace period and late payment fees can be up to $40.
Other than the special offers, don’t expect any perks like rewards points or cash back with this card. If you use a credit card responsibly, a card that offers cash back or rewards points might be a better option than a store card unless the promotional offers are appealing to you. The Home Depot Project Loan Card is more similar to a line of credit. It doesn’t offer any perks or rewards, but you can borrow up to $55,000 for home projects and renovations.
Who Should Consider the Home Depot Credit Card?
If you’re an avid Home Depot shopper, the card may make sense for you. The card does not offer any cash back, but it could be enticing for those interested in the introduction offers currently being made. With that, consumers may want to consider one of the best cash-back credit cards if they are going to be shopping at the home improvement store for routine fixes.
Is It Hard to Get a Home Depot Credit Card?
Home Depot does not list the credit requirements, but its APR for consumers will be 29.99% To apply, the process is rather easy, which can be done online.
Is the Home Depot Card Worth It?
The Home Depot credit card does not offer any cashback or related rewards. It does offer zero interest for six months on purchases above $299. It also has special offers that include initial statement credits and promotion discounts for certain products.
Does Home Depot Have a Rewards Card?
Home Depot offers credit cards for individual consumers, as well as various commercial and contractor cards. There are no rewards or cash back tied to the card, however. It does include certain statement credits and discounts.
How Do I Get a Home Depot Card?
Although you can apply for a Home Depot card in stores, the easier way is to visit their website. Assuming you meet the credit requirements, Home Depot’s credit issuer, Citibank, will issue a card within 10 days.
The Bottom Line
The Home Depot credit card can entice consumers looking to make a major renovation. The retailer also offers various commercial cards for contractors. Of note, the card does offer zero interest for six months on purchases above $299. For projects, such as fixing heat or A/C, replacing a water heater, or repairing plumbing, the card can be used for zero-interest financing.
Home Depot sales continue to slide but home improvement chain still tops expectations
Home Depot sales continue to slide as Americans wrestle with persistent inflation and the company narrowed its outlook for the year. But the nation’s biggest home improvement retailer still topped expectations for the quarter and shares jumped more than 5% Tuesday.
Home Depot now expects earnings per share to decline between 9% and 11% in 2023 and same-store sales to fall 3% to 4%. The company previously anticipated an earnings per share drop between 7% and 13% and a same-store sales decline of 2% to 5%.
It’s the first time that Home Depot has projected a decline in annual sales since 2009, when the U.S. economy was decimated by a massive housing bubble.
Inflation is hitting Home Depot on several fronts.
Americans are more closely watching where they spend money as costs rise. The average receipt at Home Depot declined 0.3% from last year during the same period, and customer transactions are down 2.4%. It is also getting more expensive to put big-ticket items on credit cards or to take out a loan to buy them, a result of the fight by the U.S. Federal Reserve against inflation.
Secondly, as the Fed has raised interest rates to cool the economy and inflation, it has fractured the real estate market, the health of which is a big determinant in Home Depot’s fortunes.
Few people are moving from their homes after locking in ultralow mortgages at or below 3%. The average rate on the benchmark 30-year home loan is more than twice that now.
Sales of previously occupied U.S. homes in September fell for the fourth month in a row, grinding to their slowest pace in more than a decade. Sales of new homes are falling, too, but for many different reasons.
The lack of existing homes for sale has forced more people into the new home market, or out of the housing market completely as prices skyrocket. Both can impact a company like Home Depot negatively.
The impact of inflation and monetary policy on a company like Home Depot played out in real time Tuesday after the U.S. released the latest data on inflation, which eased in October. Shares of Home Depot that had been trading flat jumped in early trading.
Third-quarter revenue slipped 3% to $37.71 billion, Home Depot Inc. said Tuesday, which is better than the $37.52 billion that Wall Street was expecting, according to a survey of analysts by Zacks Investment Research.
Sales at stores open at least a year, a key gauge of a retailer’s health, dropped 3.1%. In the U.S., they declined 3.5%.
Customers, compared with several years ago when they were taking on major renovations at home, focused instead on smaller, less expensive projects.
“Similar to the second quarter, we saw continued customer engagement with smaller projects, and experienced pressure in certain big-ticket, discretionary categories,” Chair and CEO Ted Decker said in a prepared statement.
Big-ticket items include appliances that many customers buy through credit, which have grown very expensive as a result of the fight by the U.S. Federal Reserve to rein in inflation. The Fed has raised its benchmark interest rate 11 times in the past year and a half, to about 5.4%, the highest level in 22 years.
That has raised the cost of mortgages, credit cards typically used to acquire refrigerators, and loans for home improvement.
Neil Saunders, managing director of GlobalData, said that because more people are staying put in their homes, it’s taking a bite out of spending on do-it-yourself projects, most of which are taken up after a move. Those who aren’t moving aren’t spending on larger projects, like major remodels, either.
“A lack of financing, softer confidence, and higher interest rates which impact borrowing to fund such activity, are all underpinning the decline,” Saunders said. “In our view, the situation will only remedy itself once the economy picks up or the backlog of work builds to an extent that it fuels latent demand – which will not happen any time soon.”
Home Depot earned $3.81 billion, or $3.81 per share, topping the $3.76 per share that industry analysts had expected, but it’s down from last year when the Atlanta company earned $4.34 billion, or $4.24 per share.
Its shares ended Tuesday up $15.56 at $303.63. Shares of competitor Lowe’s, which releases quarterly earnings a week from today, rose $8.40, or 4.3%, to $202.24.
