Home Depot (NYSE:HD) Hits New 52-Week Low After Analyst Downgrade

Key Points

• Home Depot shares fell to a new 52-week low after Oppenheimer cut its price target from $405 to $310 and kept a market perform rating. The stock traded as low as $296.88 during the session.
• Analyst views remain mixed, with several firms still bullish on the company and the consensus rating staying at “Moderate Buy.” Despite the downgrade, the average price target across analysts is still well above the current share price.
• The latest quarterly results were better than expected, as Home Depot beat EPS and revenue estimates and reaffirmed its full-year guidance. Management also said demand held up reasonably well, supported by professional customers and smaller DIY projects.

The Home Depot, Inc. (NYSE:HD - Get Free Report)'s share price hit a new 52-week low during trading on Tuesday after Oppenheimer lowered their price target on the stock from $405.00 to $310.00. Oppenheimer currently has a market perform rating on the stock. Home Depot traded as low as $296.88 and last traded at $293.7240, with a volume of 164915 shares trading hands. The stock had previously closed at $299.81.

A number of other analysts have also issued reports on HD. Morgan Stanley boosted their price target on shares of Home Depot from $412.00 to $420.00 and gave the stock an "overweight" rating in a research note on Tuesday, April 28th. DA Davidson raised their price objective on shares of Home Depot from $407.00 to $445.00 and gave the company a "buy" rating in a research note on Tuesday, February 24th. Jefferies Financial Group upped their target price on shares of Home Depot from $424.00 to $454.00 and gave the stock a "buy" rating in a research note on Tuesday, February 24th. Evercore reduced their target price on shares of Home Depot from $425.00 to $415.00 and set an "outperform" rating on the stock in a report on Tuesday, March 31st. Finally, Robert W. Baird boosted their price target on shares of Home Depot from $400.00 to $430.00 and gave the stock an "outperform" rating in a research note on Tuesday, February 17th. Twenty investment analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Home Depot has a consensus rating of "Moderate Buy" and a consensus price target of $401.34.

Insiders Place Their Bets

In related news, CFO Richard V. Mcphail sold 2,550 shares of Home Depot stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $368.89, for a total value of $940,669.50. Following the completion of the transaction, the chief financial officer owned 44,566 shares in the company, valued at $16,439,951.74. The trade was a 5.41% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.08% of the stock is currently owned by company insiders.

Key Headlines Impacting Home Depot

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

• Positive Sentiment: Home Depot posted adjusted EPS of $3.43 versus estimates around $3.42-$3.41, while revenue of $41.77 billion also topped forecasts, signaling that demand held up better than feared. Reuters article
• Positive Sentiment: The company reaffirmed its full-year fiscal 2026 guidance, which reassured investors who were worried that weak housing activity and higher borrowing costs might force a cut. MarketWatch article
• Positive Sentiment: Management said core customers remained engaged, with strength in professional buyers and smaller DIY projects helping offset a tougher housing backdrop. CNBC article
• Neutral Sentiment: Comparable sales rose modestly, but profit fell from a year earlier, underscoring that the business is still navigating a slow home-improvement market. Yahoo Finance article
• Negative Sentiment: Earlier analyst commentary had highlighted sluggish demand, weak housing affordability, and concerns that Home Depot could trim guidance, which kept expectations muted heading into the report. Yahoo Finance article

Institutional Investors Weigh In On Home Depot

Several institutional investors have recently modified their holdings of the company. Brighton Jones LLC boosted its holdings in Home Depot by 36.5% in the fourth quarter. Brighton Jones LLC now owns 26,918 shares of the home improvement retailer's stock valued at $10,471,000 after purchasing an additional 7,203 shares in the last quarter. Sivia Capital Partners LLC raised its holdings in Home Depot by 7.1% during the second quarter. Sivia Capital Partners LLC now owns 2,598 shares of the home improvement retailer's stock worth $952,000 after purchasing an additional 173 shares in the last quarter. Schnieders Capital Management LLC. lifted its position 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 worth $4,248,000 after buying an additional 1,433 shares during the last quarter. Darwin Wealth Management LLC acquired a new position in shares of Home Depot in the 2nd quarter valued at $1,773,000. Finally, Financial Advisors Network Inc. boosted its holdings in shares of 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 valued at $868,000 after buying an additional 241 shares in the last quarter. 70.86% of the stock is owned by hedge funds and other institutional investors.

Home Depot Price Performance

The company has a debt-to-equity ratio of 3.62, a quick ratio of 0.26 and a current ratio of 1.06. The stock's 50-day moving average is $330.53 and its 200 day moving average is $353.57. The stock has a market capitalization of $293.84 billion, a PE ratio of 20.68, a P/E/G ratio of 3.43 and a beta of 1.00.

Home Depot (NYSE:HD - Get Free Report) last announced its quarterly earnings results on Tuesday, May 19th. The home improvement retailer reported $3.43 earnings per share for the quarter, beating analysts' consensus estimates of $3.42 by $0.01. Home Depot had a net margin of 8.60% and a return on equity of 134.32%. The firm had revenue of $41.77 billion during the quarter, compared to analysts' expectations of $41.59 billion. During the same period in the previous year, the company earned $3.56 earnings per share. Home Depot's quarterly revenue was up 4.8% compared to the same quarter last year. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. As a group, equities analysts expect that The Home Depot, Inc. will post 15.03 earnings per share for the current year.

Home Depot Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, March 26th. Investors of record on Thursday, March 12th were paid a dividend of $2.33 per share. The ex-dividend date was Thursday, March 12th. This represents a $9.32 dividend on an annualized basis and a yield of 3.2%. This is a boost from Home Depot's previous quarterly dividend of $2.30. Home Depot's dividend payout ratio (DPR) is 65.50%.

About Home Depot

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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