HD Supply Holdings, Inc. yesterday announced agreeing to let Atlanta, GA-based The Home Depot, Inc. (HD - Free Report) to acquire its outstanding shares in an all-cash transaction. The transaction has been approved by the boards of directors of both companies.
HD Supply’s shares gained 24.5% yesterday, ending the trading session at $55.77. The spike in the stock price primarily reflected the market’s reaction to the agreement between HD Supply and Home Depot.
It is worth mentioning here that Home Depot is the world’s largest retailer specializing in home improvement products. In 2019, the company generated $110.2 billion in net revenues and $11.2 billion of earnings.
Inside the Headlines
As agreed upon, the transaction includes HD Supply’s Canada and USABlueBook operations. After the floatation of a tender offer by Coronado Acquisition Sub Inc. — a subsidiary of Home Depot, shareholders of HD Supply will receive $56 in cash for each share held by them. Post the offering, the remaining shares of HD Supply will be converted into cash consideration in a merger arrangement.
HD Supply believes that the above-mentioned transaction is in the best interest of shareholders, associates and customers. Subject to the receipt of regulatory approvals and the satisfaction of customary closing conditions, the transaction is anticipated to close in the quarter ending Jan 31, 2021.
Zacks Rank, Estimate Trend and Price Performance
With a market capitalization of $7.3 billion, HD Supply currently carries a Zacks Rank #3 (Hold). Its solid product offerings (especially related to healthcare), diversified end-market presence and solid capital allocation policies are likely to benefit in the quarters ahead. However, the pandemic-related uncertainties are concerning.
In the past 30 days, the company’s earnings estimates have moved 0.5% south to $2.09 for fiscal 2020 (ending January 2021) and 7.4% to $1.87 for fiscal 2021 (ending January 2022).
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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HD Supply Holdings, Inc. yesterday announced agreeing to let Atlanta, GA-based The Home Depot, Inc. (HD - Free Report) to acquire its outstanding shares in an all-cash transaction. The transaction has been approved by the boards of directors of both companies.
HD Supply’s shares gained 24.5% yesterday, ending the trading session at $55.77. The spike in the stock price primarily reflected the market’s reaction to the agreement between HD Supply and Home Depot.
It is worth mentioning here that Home Depot is the world’s largest retailer specializing in home improvement products. In 2019, the company generated $110.2 billion in net revenues and $11.2 billion of earnings.
Inside the Headlines
As agreed upon, the transaction includes HD Supply’s Canada and USABlueBook operations. After the floatation of a tender offer by Coronado Acquisition Sub Inc. — a subsidiary of Home Depot, shareholders of HD Supply will receive $56 in cash for each share held by them. Post the offering, the remaining shares of HD Supply will be converted into cash consideration in a merger arrangement.
HD Supply believes that the above-mentioned transaction is in the best interest of shareholders, associates and customers. Subject to the receipt of regulatory approvals and the satisfaction of customary closing conditions, the transaction is anticipated to close in the quarter ending Jan 31, 2021.
Zacks Rank, Estimate Trend and Price Performance
With a market capitalization of $7.3 billion, HD Supply currently carries a Zacks Rank #3 (Hold). Its solid product offerings (especially related to healthcare), diversified end-market presence and solid capital allocation policies are likely to benefit in the quarters ahead. However, the pandemic-related uncertainties are concerning.
In the past 30 days, the company’s earnings estimates have moved 0.5% south to $2.09 for fiscal 2020 (ending January 2021) and 7.4% to $1.87 for fiscal 2021 (ending January 2022).
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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