Home improvement giant Home Depot (HD) has faced its share of controversy over Immigration and Customs Enforcement (ICE) raids on its parking lots and surroundings looking for illegal immigrants. Two more such raids hit last night, and the fallout is oddly subdued. In fact, Home Depot shares ticked up fractionally in Friday afternoon’s trading.
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A representative with ICE noted that the sweeps were a “Border Patrol operation,” and hit two Home Depot locations. One of these was Encinitas, while the other was in San Marcos. If it sounds odd that the Border Patrol raids are still hitting during a government shutdown, you may be pleased to know that federal law enforcement is considered “essential,” and thus continues working, though their pay is deferred.
Interestingly, an activist group called Union del Barrio noted that there was “immigration enforcement activity” that took place somewhere besides a Home Depot, with a San Marcos “office / education building” about a mile out from the Home Depot on Rancheros Drive getting hit. The Rancheros Drive hit saw about 10 people detained, while the San Marcos Home Depot saw between 15 and 20 people. The Encinitas Home Depot, meanwhile, saw around 10 detainments.
Insider Sales
Then, an unexpected point emerged that may leave some concerned. Insiders are selling Home Depot stock at an oddly rapid clip, especially over the last year. Executive vice president Teresa Roseborough reportedly sold off $2 million worth of shares priced at $369 per share. Given that shares today are around $395, the loss of potential gain is a bit pronounced.
Naturally, there are multiple reasons why an insider might choose to sell off. Portfolio rebalancing, a call for liquidity, and tax issues are just part of the list. But sales at a loss, and in large numbers by insiders suggest that someone sees a top coming in, and wants to get out while the getting remains good.
Is Home Depot a Good Long-Term Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on HD stock based on 19 Buys and six Holds assigned in the past three months, as indicated by the graphic below. After a 3.27% loss in its share price over the past year, the average HD price target of $446.30 per share implies 12.68% upside potential.
