Home Depot (NYSE:HD) Trading 1% Higher – Should You Buy?

The Home Depot, Inc. (NYSE:HD) was up 1% during mid-day trading on Friday . The stock traded as high as $311.21 and last traded at $308.8580. Approximately 3,149,749 shares were traded during mid-day trading, a decline of 27% from the average session volume of 4,324,503 shares. The stock had previously closed at $305.69.

Home Depot News Summary

Here are the key news stories impacting Home Depot this week:

• Positive Sentiment: Home Depot’s long-term growth case is supported by momentum among professional customers, expanding digital sales and faster fulfillment capabilities. These factors could help offset weakness in housing-related demand. Home Depot Drops 12.4% in a Month: Time to Buy or Stay Cautious?
• Positive Sentiment: The retailer is attempting to improve the shopping experience with a perk modeled after Costco’s membership approach. If successful, the initiative could support customer engagement and store traffic. Home Depot Tries to Copy Major Costco Perk
• Positive Sentiment: Home Depot continues to be viewed as a durable dividend-growth company, which may appeal to income-focused investors while the broader home-improvement cycle remains weak. Stocks That Keep Raising Their Dividend
• Neutral Sentiment: A quantitative signal has emerged that could interest contrarian options traders, but it does not establish a fundamental catalyst or guarantee a reversal in HD’s decline. Quant Signal for Contrarian Options Traders
• Negative Sentiment: The key concern is weakening customer traffic: recent results reportedly showed growth driven by larger baskets but fewer shopping visits. A prolonged housing-market freeze could pressure comparable sales and earnings. What Happens to Home Depot Stock If Shoppers Keep Visiting Less?
• Negative Sentiment: Analyst sentiment has weakened. Erste Group Bank trimmed its FY2028 EPS forecast to $16.02 from $16.05, while Sanford C. Bernstein issued a pessimistic stock-price outlook. The small estimate cut is not material by itself, but it reinforces broader caution around housing and costs. Sanford C. Bernstein Forecast for Home Depot

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on HD shares. The Goldman Sachs Group cut their price target on shares of Home Depot from $409.00 to $390.00 and set a “buy” rating on the stock in a report on Wednesday, May 20th. Evercore decreased their price objective on shares of Home Depot from $415.00 to $400.00 and set an “outperform” rating for the company in a research note on Wednesday, May 20th. Morgan Stanley dropped their target price on shares of Home Depot from $420.00 to $400.00 and set an “overweight” rating on the stock in a research report on Wednesday, May 20th. Robert W. Baird reduced their target price on Home Depot from $430.00 to $380.00 and set an “outperform” rating for the company in a report on Wednesday, May 20th. Finally, Jefferies Financial Group reaffirmed a “buy” rating and set a $398.00 price target on shares of Home Depot in a research report on Tuesday, August 18th. Eighteen analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Home Depot currently has an average rating of “Moderate Buy” and a consensus price target of $375.18.

Home Depot Stock Up 1.0%

The stock’s 50-day moving average price is $336.12 and its two-hundred day moving average price is $334.07. The company has a current ratio of 1.08, a quick ratio of 0.31 and a debt-to-equity ratio of 2.64. The stock has a market capitalization of $308.14 billion, a P/E ratio of 21.61, a P/E/G ratio of 3.42 and a beta of 0.95.

Home Depot (NYSE:HD) last posted its quarterly earnings results on Tuesday, August 18th. The home improvement retailer reported $4.92 EPS for the quarter, topping analysts’ consensus estimates of $4.73 by $0.19. Home Depot had a net margin of 8.41% and a return on equity of 106.42%. The company had revenue of $47.86 billion for the quarter, compared to analysts’ expectations of $47.24 billion. During the same quarter in the previous year, the firm posted $4.68 EPS. Home Depot’s revenue was up 5.7% on a year-over-year basis. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. As a group, research analysts expect that The Home Depot, Inc. will post 15 earnings per share for the current fiscal year.

Home Depot Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 17th. Stockholders of record on Thursday, September 3rd will be paid a dividend of $2.33 per share. The ex-dividend date is Thursday, September 3rd. This represents a $9.32 annualized dividend and a dividend yield of 3.0%. Home Depot’s dividend payout ratio is presently 65.22%.

Insider Transactions at Home Depot

In related news, EVP Michael Rowe sold 710 shares of the business’s stock in a transaction dated Wednesday, August 26th. The stock was sold at an average price of $336.76, for a total value of $239,099.60. Following the sale, the executive vice president directly owned 6,838 shares in the company, valued at approximately $2,302,764.88. The trade was a 9.41% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CFO Richard McPhail sold 5,989 shares of the company’s stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $348.40, for a total transaction of $2,086,567.60. Following the sale, the chief financial officer directly owned 48,104 shares in the company, valued at approximately $16,759,433.60. This trade represents a 11.07% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 9,829 shares of company stock worth $3,339,314. Insiders own 0.08% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of HD. Brighton Jones LLC boosted its holdings in shares of Home Depot by 36.5% in the fourth quarter. Brighton Jones LLC now owns 26,918 shares of the home improvement retailer’s stock worth $10,471,000 after acquiring an additional 7,203 shares during the period. Sivia Capital Partners LLC raised its stake in shares of Home Depot by 7.1% during the 2nd quarter. Sivia Capital Partners LLC now owns 2,598 shares of the home improvement retailer’s stock valued at $952,000 after purchasing an additional 173 shares during the period. Schnieders Capital Management LLC. raised its stake in shares of Home Depot by 14.1% during the 2nd quarter. Schnieders Capital Management LLC. now owns 11,587 shares of the home improvement retailer’s stock valued at $4,248,000 after purchasing an additional 1,433 shares during the period. Darwin Wealth Management LLC purchased a new stake in Home Depot during the 2nd quarter worth about $1,773,000. Finally, Financial Advisors Network Inc. boosted its stake in Home Depot by 11.3% in the 2nd quarter. Financial Advisors Network Inc. now owns 2,368 shares of the home improvement retailer’s stock worth $868,000 after purchasing an additional 241 shares during the period. 70.86% of the stock is owned by institutional investors.

Home Depot Company Profile

The Home Depot, Inc is a home improvement retailer that sells building materials, appliances, decor, hardware, tools, paint, lawn and garden products, and related merchandise. The company serves do-it-yourself customers, professional contractors, homebuilders, and other commercial customers through its retail stores and digital platforms.

Home Depot also provides services such as equipment and tool rental, delivery, installation, and project support. Its professional-focused offerings include job-lot quantities, specialized products, credit services, and account support designed for contractors and other trade customers.

Founded in 1978 by Bernie Marcus, Arthur Blank, Ken Langone, and Pat Farrah, the company is headquartered in Atlanta, Georgia.