Home Depot (NYSE:HD) Downgraded to "Sell" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Home Depot from “hold” to “sell”, adding to mixed analyst views on the stock. Despite the downgrade, most analysts still rate it positively, with a consensus rating of Moderate Buy and an average price target of $412.24.
• Home Depot shares were down 1.6% and opened at $317.43, near the lower end of its 52-week range. The stock also remains below its 50-day and 200-day moving averages.
• The company recently beat earnings expectations, reporting $2.72 EPS versus $2.52 expected, while revenue came in slightly above forecasts at $38.20 billion. However, quarterly revenue still fell 3.8% year over year, and a CFO share sale was also disclosed.

Home Depot (NYSE:HD - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued to clients and investors on Saturday.

Several other research analysts have also commented on the company. DA Davidson lifted their price target on Home Depot from $407.00 to $445.00 and gave the stock a "buy" rating in a report on Tuesday, February 24th. Telsey Advisory Group reiterated an "outperform" rating and set a $435.00 price target on shares of Home Depot in a report on Wednesday, March 25th. Sanford C. Bernstein lifted their price target on Home Depot from $381.00 to $390.00 and gave the stock a "market perform" rating in a report on Wednesday, February 25th. Gordon Haskett lifted their price target on Home Depot from $330.00 to $370.00 and gave the stock a "hold" rating in a report on Wednesday, February 11th. Finally, Truist Financial set a $424.00 price target on Home Depot in a report on Tuesday, February 24th. Twenty investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Home Depot presently has an average rating of "Moderate Buy" and a consensus price target of $412.24.

Home Depot Trading Down 1.6%

Shares of HD opened at $317.43 on Friday. Home Depot has a 52-week low of $310.40 and a 52-week high of $426.75. The company has a quick ratio of 0.26, a current ratio of 1.06 and a debt-to-equity ratio of 3.62. The firm's fifty day moving average is $339.65 and its two-hundred day moving average is $357.57. The stock has a market cap of $316.17 billion, a PE ratio of 22.31, a price-to-earnings-growth ratio of 3.72 and a beta of 1.00.

Home Depot (NYSE:HD - Get Free Report) last announced its earnings results on Tuesday, February 24th. The home improvement retailer reported $2.72 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.52 by $0.20. Home Depot had a net margin of 8.60% and a return on equity of 134.32%. The company had revenue of $38.20 billion for the quarter, compared to analysts' expectations of $38.01 billion. During the same quarter in the previous year, the company posted $3.13 EPS. The firm's quarterly revenue was down 3.8% on a year-over-year basis. Home Depot has set its FY 2026 guidance at 14.230-14.799 EPS. Research analysts forecast that Home Depot will post 15.03 earnings per share for the current fiscal year.

Insider Transactions at Home Depot

In other Home Depot news, CFO Richard V. Mcphail sold 2,550 shares of the business's stock in a transaction dated Wednesday, March 4th. The shares were sold at an average price of $368.89, for a total transaction of $940,669.50. Following the sale, the chief financial officer directly owned 44,566 shares in the company, valued at $16,439,951.74. This represents a 5.41% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.08% of the stock is owned by company insiders.

Institutional Trading of Home Depot

Institutional investors and hedge funds have recently bought and sold shares of the business. Parvin Asset Management LLC increased its stake in Home Depot by 110.0% during the third quarter. Parvin Asset Management LLC now owns 63 shares of the home improvement retailer's stock worth $26,000 after purchasing an additional 33 shares during the period. Advocate Investing Services LLC purchased a new stake in Home Depot during the fourth quarter worth about $25,000. Financially Speaking Inc purchased a new stake in Home Depot during the third quarter worth about $31,000. Key Capital Management INC acquired a new position in shares of Home Depot during the fourth quarter worth about $28,000. Finally, Cache Advisors LLC acquired a new position in shares of Home Depot during the first quarter worth about $27,000. 70.86% of the stock is currently owned by hedge funds and other institutional investors.

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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