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Several companies are likely to find support on Home Depot Inc.’s proposed settlement of shareholder derivative claims due to an increasing payment card breach, which could give firms a lift on corporate security governance improvement blueprint

The shareholder settlement involves amendments on Home Depot’s corporate governance cybersecurity and over $1 million is to be paid relative to a 2014 data breach that will act according to the plaintiffs’ no-fault unopposed proposed settlement filed on the 28th of April in the U.S. District Court for the Northern District of Georgia.

Companies were reportedly receiving lawsuits from consumers over data breaches. Not only that, shareholders also filed complaints, seeking for future breaches and demands to restore financial stability to corporations in which they have invested.  

With the retail company’s willingness to take action, it has achieved a mutually beneficial resolution that other companies like Yahoo! Inc. could rely on to improve their corporate data governance, which also faces lawsuits over data breaches.

HD Stock Performance

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Shares of Home Depot, Inc. changed hands at $155.00 at the close of trade on Wednesday, making a move of 0.03%, or $0.05 per share with a total trading volume of 2.42 million shares.

During the pre-market session,HD stocks opened at $155.16 and traded between a range of $154.59 and $155.39, which currently has a total float of 1.2 billion shares with an average traded volume of 3.82 million per day.

Meanwhile, the stock has a 50-day moving average of $147.92 and a 200-day moving average of $135.23, with a session high of $156.27 and a session low of $119.20 in the past year. The company’s P/E ratio is 23.9, while its P/B ratio stood at 42.94.

The chart below illustrates Home Depot, Inc. stock movement after the retail company announced its data breach settlement blueprint, that would be beneficial to companies after facing countless lawsuits over data breaches.

Subsequently, the stock is currently trading at $155.15 in a light trading volume. It is clearly shown that shares sharply climbed in the previous sessions, with a rising window on the track.

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Conclusion

As shares of Home Depot, Inc. remained positive, investors are expected to include the stock on their watch list. However, there were no supporting candles that could determine if stocks will continue to rally or fall into consolidating path.

Therefore, we recommend market participants to wait on the sidelines until further signs of a strong confirmation of a trend. So far, the stock continue to become an attractive asset with their data breach settlement blueprint.

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