The Home Depot, Inc. (NYSE:HD) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Analysts maintain a “Moderate Buy” consensus on Home Depot, with 18 buys, 13 holds and one sell among 32 brokerages. The average 12-month price target is $375.54, above the reported share price of $320.94.
• Home Depot beat quarterly expectations, reporting $4.92 in EPS versus the $4.73 consensus and $47.86 billion in revenue versus $47.24 billion expected. Revenue increased 5.7% year over year.
• The company declared a quarterly dividend of $2.33 per share, equivalent to $9.32 annually and a 2.9% yield. Risks include elevated mortgage rates, pressure on consumer spending and recent insider share sales.

Shares of The Home Depot, Inc. (NYSE:HD - Get Free Report) have received a consensus rating of "Moderate Buy" from the thirty-two brokerages that are currently covering the firm, MarketBeat reports. One research analyst has rated the stock with a sell recommendation, thirteen have given a hold recommendation and eighteen have assigned a buy recommendation to the company. The average 1 year price target among brokerages that have issued a report on the stock in the last year is $375.5357.

A number of analysts have recently issued reports on the company. HSBC lowered their price objective on Home Depot from $392.00 to $310.00 and set a "hold" rating on the stock in a research report on Wednesday, May 20th. Evercore decreased their price target on shares of Home Depot from $415.00 to $400.00 and set an "outperform" rating on the stock in a research note on Wednesday, May 20th. Weiss Ratings raised shares of Home Depot from a "hold (c-)" rating to a "hold (c)" rating in a report on Tuesday, July 7th. Robert W. Baird lowered their price target on shares of Home Depot from $430.00 to $380.00 and set an "outperform" rating on the stock in a report on Wednesday, May 20th. Finally, TD Cowen restated a "buy" rating on shares of Home Depot in a research note on Monday, August 10th.

Home Depot Stock Up 0.9%

NYSE HD opened at $320.94 on Friday. Home Depot has a twelve month low of $289.10 and a twelve month high of $426.75. The stock has a market cap of $320.20 billion, a PE ratio of 22.46, a PEG ratio of 3.53 and a beta of 0.95. The firm has a 50-day simple moving average of $339.35 and a 200 day simple moving average of $336.40. The company has a debt-to-equity ratio of 2.64, a quick ratio of 0.31 and a current ratio of 1.08.

Home Depot (NYSE:HD - Get Free Report) last issued its quarterly earnings results on Tuesday, August 18th. The home improvement retailer reported $4.92 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.73 by $0.19. The firm had revenue of $47.86 billion for the quarter, compared to analyst estimates of $47.24 billion. Home Depot had a return on equity of 106.42% and a net margin of 8.41%.The company's quarterly revenue was up 5.7% compared to the same quarter last year. During the same period in the previous year, the company posted $4.68 earnings per share. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. On average, research analysts forecast that Home Depot will post 15 EPS for the current year.

Home Depot Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 17th. Investors of record on Thursday, September 3rd will be paid a $2.33 dividend. The ex-dividend date of this dividend is Thursday, September 3rd. This represents a $9.32 dividend on an annualized basis and a yield of 2.9%. Home Depot's payout ratio is presently 65.22%.

Key Headlines Impacting Home Depot

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

• Positive Sentiment: Retail earnings point to a relatively resilient higher-income consumer. Home Depot and Lowe’s reported solid home-improvement sales, suggesting demand for repairs and larger projects remains healthier than spending at some value-oriented retailers. Retail Earnings Just Exposed a Bigger Divide in the U.S. Consumer Economy
• Positive Sentiment: Analysts at Zacks updated estimates for Home Depot’s fiscal third-quarter earnings, providing a fresh valuation and earnings catalyst following the company’s prior quarterly beat. Home Depot most recently reported earnings of $4.92 per share versus a $4.73 consensus estimate, with revenue also exceeding forecasts. Zacks Research Estimates Home Depot's Q3 Earnings
• Neutral Sentiment: The stock’s valuation is near the middle of its peer group, but analysts question whether its operating performance and growth have fallen behind competitors. This creates potential upside if productivity improves, but also limits enthusiasm until growth reaccelerates. The Gap Between HD Stock And Its Own Numbers
• Negative Sentiment: Mortgage rates recently reached a one-year high following a global bond-market sell-off. Elevated borrowing costs can discourage home purchases, remodeling projects and other large-ticket transactions that drive Home Depot’s sales. Mortgage Rates Just Hit a 1-Year High
• Negative Sentiment: Some investors view weakness in consumer-focused stocks, including Home Depot, as a warning that middle-income households are under pressure. That macro concern could weigh on discretionary home-improvement spending and the broader retail sector. Wall Street worried about GOP in midterms
• Negative Sentiment: One market analysis cited Home Depot’s transition to positive free cash flow in the early 2000s as evidence that growth had slowed, reinforcing concerns that the company’s mature business may offer limited expansion compared with faster-growing retailers. Home Depot stock information

Insider Buying and Selling

In other news, EVP Teresa Roseborough sold 2,455 shares of the company's stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $328.77, for a total value of $807,130.35. Following the sale, the executive vice president directly owned 14,061 shares in the company, valued at approximately $4,622,834.97. This represents a 14.86% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, CFO Richard V. Mcphail sold 5,989 shares of the stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $348.40, for a total value of $2,086,567.60. Following the completion of the transaction, the chief financial officer directly owned 48,104 shares of the company's stock, valued at approximately $16,759,433.60. The trade was a 11.07% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 9,154 shares of company stock valued at $3,132,798 over the last quarter. Corporate insiders own 0.08% of the company's stock.

Institutional Trading of Home Depot

Several institutional investors have recently bought and sold shares of HD. Advocate Investing Services LLC acquired a new stake in shares of Home Depot in the 4th quarter valued at $25,000. Zeit Capital LLC bought a new position in Home Depot during the 2nd quarter valued at about $26,000. Parvin Asset Management LLC lifted its holdings in Home Depot by 110.0% during the 3rd quarter. Parvin Asset Management LLC now owns 63 shares of the home improvement retailer's stock valued at $26,000 after purchasing an additional 33 shares during the last quarter. Cache Advisors LLC acquired a new position in Home Depot in the first quarter valued at about $27,000. Finally, Merkkuri Wealth Advisors LLC acquired a new position in Home Depot in the first quarter valued at about $28,000. Institutional investors and hedge funds own 70.86% of the company's stock.

Home Depot Company Profile

The Home Depot, Inc NYSE: HD is a leading home improvement retailer that operates large-format stores and an integrated online platform offering a broad range of products and services for do-it-yourself consumers, professional contractors and businesses. The company was founded in 1978 by Bernard Marcus and Arthur Blank and is headquartered in Atlanta, Georgia. Since opening its first stores at the end of the 1970s, Home Depot has grown into a multinational retailer known for its orange-branded stores and wide assortment of home improvement merchandise.

Home Depot's core business includes the sale of building materials, lumber, tools, hardware, appliances, paint, plumbing and electrical supplies, lawn and garden products, and home décor.

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