Home Depot (NYSE:HD) Reaches New 12-Month Low - Here's Why

Key Points

• Shares of Home Depot hit a new 52-week low of $314.53 in mid-day trading (last quoted ~$314.42), down from a prior close of $323.88 on higher volume.
• The decline is being driven by a risk-off market reaction after Mideast developments pushed oil higher, combined with demand worries from high borrowing costs and soft homebuilding, plus operational/reputational risk from partner Wren Kitchens and notable insider/institutional selling.
• Offsetting the near-term pressure, analysts remain broadly positive (consensus target ~$414, many Buy ratings); Home Depot beat quarterly EPS estimates and raised its quarterly dividend to $2.33, though revenue declined year‑over‑year and leverage is elevated (debt/equity ~3.62).

Shares of The Home Depot, Inc. (NYSE:HD - Get Free Report) reached a new 52-week low during mid-day trading on Monday . The company traded as low as $314.53 and last traded at $314.4170, with a volume of 1880417 shares trading hands. The stock had previously closed at $323.88.

Trending Headlines about Home Depot

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

• Positive Sentiment: Wall‑Street sentiment remains broadly favorable with multiple buy/overweight ratings and a median price target well above the current level, giving upside support over the medium term. Brokerage Average Rating
• Neutral Sentiment: Investor interest/coverage is high (Zacks/TipRanks attention pieces), which can amplify moves in either direction as news flow arrives. Zacks Attention
• Neutral Sentiment: Recent analyst coverage shows mostly Buy/Outperform stances and high targets (median ~$422), which cushions downside but may slow near‑term recovery if macro headwinds persist. Quiver Quant Summary
• Negative Sentiment: Macro shock: Mideast developments raised oil and triggered a risk‑off environment that typically hurts cyclical retailers and big‑ticket consumer spending. Market Risk-Off / Energy Shock
• Negative Sentiment: Demand worries: high borrowing costs, weaker homebuilder sentiment and a still‑soft home‑improvement backdrop keep investor focus on margin pressure and demand elasticity ahead of May 19 earnings. Housing / Demand Headwinds
• Negative Sentiment: Operational/reputational risk surfaced after partner Wren Kitchens’ abrupt U.S. shutdown, highlighting third‑party installer exposure and possible customer service/claims costs. Wren Kitchens Fallout
• Negative Sentiment: Insider and institutional flows show notable selling (multiple insider sales, large hedge‑fund/institutional reductions reported), which can weigh on sentiment, especially into a volatile macro/earnings window. Insider & Institutional Activity
• Negative Sentiment: Policy/regulatory risk: reporting flags potential minimum‑wage/operational rule pressures that could raise labor costs or change operating practices if enacted. Minimum Wage / Regulatory Risk

Analyst Ratings Changes

HD has been the topic of several recent research reports. Royal Bank Of Canada boosted their price target on Home Depot from $363.00 to $377.00 and gave the stock a "sector perform" rating in a research report on Wednesday, February 25th. BNP Paribas Exane dropped their price objective on shares of Home Depot from $391.00 to $348.00 and set a "neutral" rating on the stock in a research note on Tuesday, March 24th. KeyCorp reissued a "sector weight" rating on shares of Home Depot in a research report on Wednesday, February 25th. Wall Street Zen upgraded shares of Home Depot from a "sell" rating to a "hold" rating in a research note on Saturday, March 21st. Finally, Jefferies Financial Group raised their price target on shares of Home Depot from $424.00 to $454.00 and gave the company a "buy" rating 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 issued a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $414.17.

Home Depot Stock Performance

The company has a market capitalization of $311.31 billion, a price-to-earnings ratio of 21.96, a price-to-earnings-growth ratio of 3.54 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. The stock has a 50-day simple moving average of $343.27 and a 200-day simple moving average of $359.02.

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

Home Depot Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, March 26th. Stockholders of record on Thursday, March 12th were paid a $2.33 dividend. This is a boost from Home Depot's previous quarterly dividend of $2.30. The ex-dividend date was Thursday, March 12th. This represents a $9.32 dividend on an annualized basis and a dividend yield of 3.0%. Home Depot's dividend payout ratio (DPR) is currently 65.50%.

Insider Activity at Home Depot

In other news, CFO Richard V. Mcphail sold 2,550 shares of the 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 transaction, the chief financial officer 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 is accessible through this hyperlink. Insiders own 0.08% of the company's stock.

Institutional Trading of Home Depot

Several institutional investors and hedge funds have recently bought and sold shares of HD. Silphium Asset Management Ltd grew its position in Home Depot by 77.2% in the 3rd quarter. Silphium Asset Management Ltd now owns 13,544 shares of the home improvement retailer's stock worth $5,488,000 after purchasing an additional 5,900 shares during the last quarter. Truist Financial Corp increased its stake in shares of Home Depot by 0.3% in the third quarter. Truist Financial Corp now owns 1,095,113 shares of the home improvement retailer's stock valued at $443,729,000 after purchasing an additional 3,608 shares during the period. Asset Management One Co. Ltd. raised its holdings in shares of Home Depot by 2.3% during the third quarter. Asset Management One Co. Ltd. now owns 534,564 shares of the home improvement retailer's stock valued at $216,600,000 after buying an additional 12,239 shares during the last quarter. Atlantic Union Bankshares Corp raised its holdings in shares of Home Depot by 59.9% during the third quarter. Atlantic Union Bankshares Corp now owns 107,438 shares of the home improvement retailer's stock valued at $43,533,000 after buying an additional 40,232 shares during the last quarter. Finally, Savvy Advisors Inc. boosted its position in shares of Home Depot by 36.0% during the fourth quarter. Savvy Advisors Inc. now owns 19,478 shares of the home improvement retailer's stock worth $6,703,000 after buying an additional 5,152 shares during the period. 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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