Home Depot (NYSE:HD) Given New $400.00 Price Target at Morgan Stanley

Key Points

• Morgan Stanley lowered its price target on Home Depot from $420 to $400 but kept an overweight rating, implying about 33% upside from the current share price.
• Home Depot recently beat first-quarter estimates, posting EPS of $3.43 on revenue of $41.77 billion, and it reaffirmed fiscal 2026 guidance.
• Despite the earnings beat, the stock has been under pressure, with analysts trimming targets and shares trading near the lower end of their recent range amid concerns about weak housing demand and modest comparable sales growth.

Home Depot (NYSE:HD - Get Free Report) had its price objective lowered by research analysts at Morgan Stanley from $420.00 to $400.00 in a note issued to investors on Wednesday,MarketScreener reports. The firm currently has an "overweight" rating on the home improvement retailer's stock. Morgan Stanley's price objective indicates a potential upside of 33.04% from the company's current price.

A number of other equities research analysts also recently weighed in on HD. Sanford C. Bernstein restated a "market perform" rating and issued a $346.00 target price on shares of Home Depot in a research report on Wednesday. UBS Group reissued an "outperform" rating on shares of Home Depot in a research note on Tuesday, March 24th. Piper Sandler restated an "overweight" rating on shares of Home Depot in a report on Wednesday. Gordon Haskett decreased their target price on Home Depot from $395.00 to $330.00 in a research note on Friday, May 8th. Finally, Telsey Advisory Group lowered their target price on Home Depot from $435.00 to $410.00 and set an "outperform" rating on the stock in a report on Wednesday. Twenty investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $377.45.

Home Depot Price Performance

HD traded down $1.79 on Wednesday, reaching $300.66. The company had a trading volume of 409,809 shares, compared to its average volume of 4,271,535. The company has a fifty day moving average of $329.41 and a 200-day moving average of $353.04. The company has a market capitalization of $299.46 billion, a P/E ratio of 21.21, a PEG ratio of 3.46 and a beta of 1.00. The company has a current ratio of 1.06, a quick ratio of 0.26 and a debt-to-equity ratio of 3.62. Home Depot has a one year low of $289.10 and a one year high of $426.75.

Home Depot (NYSE:HD - Get Free Report) last released its quarterly earnings results on Tuesday, May 19th. The home improvement retailer reported $3.43 EPS for the quarter, topping analysts' consensus estimates of $3.41 by $0.02. The company had revenue of $41.77 billion for the quarter, compared to the consensus estimate of $41.59 billion. Home Depot had a net margin of 8.60% and a return on equity of 134.32%. Home Depot's revenue was up 4.8% on a year-over-year basis. During the same period in the previous year, the firm earned $3.56 EPS. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. As a group, equities research analysts anticipate that Home Depot will post 15.02 earnings per share for the current year.

Insider Transactions at Home Depot

In other news, CFO Richard V. Mcphail sold 2,550 shares of the firm's stock in a transaction dated Wednesday, March 4th. The stock was sold at an average price of $368.89, for a total value of $940,669.50. Following the sale, the chief financial officer directly owned 44,566 shares of the company's stock, valued at approximately $16,439,951.74. This trade represents a 5.41% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.08% of the stock is owned by company insiders.

Institutional Trading of Home Depot

Several hedge funds have recently added to or reduced their stakes in HD. Advocate Investing Services LLC acquired a new stake in Home Depot in the 4th quarter worth $25,000. Parvin Asset Management LLC lifted its stake in shares of Home Depot by 110.0% in the third quarter. Parvin Asset Management LLC now owns 63 shares of the home improvement retailer's stock valued at $26,000 after buying an additional 33 shares during the period. Cache Advisors LLC acquired a new stake in Home Depot during the first quarter worth about $27,000. Key Capital Management INC acquired a new stake in Home Depot during the fourth quarter worth about $28,000. Finally, Merkkuri Wealth Advisors LLC acquired a new position in Home Depot in the 1st quarter valued at approximately $28,000. Institutional investors own 70.86% of the company's stock.

Key Home Depot News

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

• Positive Sentiment: Home Depot beat first-quarter estimates, reporting EPS of $3.43 versus $3.41 expected and revenue of $41.77 billion versus $41.59 billion expected, while sales rose 4.8% year over year. Home Depot Inc (HD) Q1 2026 Earnings Call Highlights: Navigating Growth Amidst Margin Pressures
• Positive Sentiment: The company reaffirmed fiscal 2026 guidance, which eased investor concerns that weak housing demand and cautious consumers would force a bigger reset. The Home Depot Announces First Quarter Fiscal 2026 Results; Reaffirms Fiscal 2026 Guidance
• Positive Sentiment: Several analysts kept bullish ratings despite trimming price targets, including Telsey, Baird, Mizuho, and Jefferies, signaling Wall Street still sees upside from current levels. Analyst price target changes for Home Depot
• Neutral Sentiment: Management said Pro demand, digital growth, and distribution expansion helped offset weakness in big-ticket projects, suggesting a steady but not strong operating backdrop. HD Q1 Earnings Call Highlights Pro Push, Steady Outlook
• Negative Sentiment: Comparable sales growth was only 0.6% overall and 0.4% in the U.S., reinforcing concerns that higher borrowing costs, affordability pressures, and a weak housing market are limiting demand. Home Depot beats quarterly sales estimates on steady demand
• Negative Sentiment: Some commentary focused on the stock’s sharp decline to a two-year low and the risk that soft housing activity could keep pressure on the shares despite the earnings beat. Home Depot's Earnings Were Solid, but the Stock Hit a 2-Year Low

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.