Home Depot (NYSE:HD) Shares Down 2.7% - Here's Why

Key Points

• Shares fell 2.7% on Friday to about $345 with trading volume up ~244% versus average, signaling a sizable intraday selloff despite some positive headlines.
• Analyst views are mixed — several downgrades and lower targets contrast with a Goldman Sachs "buy" and Daiwa raising its target; the consensus remains a Moderate Buy with an average target near $402.
• Short-term headwinds include an earnings miss (Q reported EPS $3.74 vs. $3.83 expected), recent insider selling, reputational concerns and rising competitive pressure from Lowe’s, all likely weighing on sentiment.

The Home Depot, Inc. (NYSE:HD - Get Free Report)'s share price dropped 2.7% on Friday . The company traded as low as $344.92 and last traded at $345.4510. Approximately 12,712,567 shares were traded during mid-day trading, an increase of 244% from the average daily volume of 3,699,565 shares. The stock had previously closed at $354.99.

Key Stores Impacting Home Depot

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

• Positive Sentiment: Holiday marketing lift — A New York Times piece says tree farmers and their marketing group welcomed a new Home Depot ad promoting live-cut Christmas trees, which could boost seasonal sales and brand affinity for HD. Real or Fake? There’s a War Over Christmas … Trees.
• Positive Sentiment: Analyst upgrade — Shares rose after at least one analyst upgraded HD, a catalyst that can support short-term buying interest and validate management’s strategy. Home Depot NYSE: HD Shares Up 1.1% on Analyst Upgrade
• Positive Sentiment: Higher price target — Daiwa Capital Markets raised its price target to $360, offering further analyst support that may anchor investor expectations. Daiwa Capital Markets Boosts Home Depot NYSE: HD Price Target to $360.00
• Neutral Sentiment: Long-term performance context — A retrospective on 15‑year returns shows strong total returns for HD, useful for longer‑term investors but unlikely to move short-term trading. Here's How Much You Would Have Made Owning Home Depot Stock In The Last 15 Years
• Neutral Sentiment: Post-earnings run-up analysis — Commentary notes HD is up since earnings and asks if momentum can continue; useful framing but no new catalyst. Home Depot (HD) Up 6.7% Since Last Earnings Report: Can It Continue?
• Neutral Sentiment: Valuation check — Market commentary reviewing HD’s valuation after a recent pullback provides context for investors considering re-entry or trimming positions. Home Depot (HD) Valuation Check After Recent Share Price Pullback
• Negative Sentiment: Shares sank despite supply‑chain improvements — A TipRanks write-up highlights that HD said it "significantly increased the speed of our delivery" but the stock still fell, suggesting investor concern about growth/slowing comps or forward guidance. “…Significantly Increased the Speed of Our Delivery”: Home Depot Stock NYSE: HD Sinks Despite Supply Chain Improvements
• Negative Sentiment: Insider selling — Recent insider sales were reported and corresponded with a pullback in the stock, a common near‑term negative signal for investors. Home Depot NYSE: HD Shares Down 1.2% Following Insider Selling
• Negative Sentiment: Reputational/operational issue — Coverage of Home Depot using noise machines to deter day laborers could pose reputational risk and attract regulatory or public scrutiny. “Caused Headaches and Nausea”: Home Depot Turns to Noise Machines to Run Off Day Laborers, Home Depot Stock NYSE: HD Notches Up
• Negative Sentiment: Competitive pressure from Lowe’s — Analyst comparisons suggest Lowe’s is gaining operational momentum (AI, Pro expansion), which could pressure HD’s market share or growth premium. Home Depot vs. Lowe's: Which Home Improvement Stock to Bet on in 2026?

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on HD. Gordon Haskett reduced their target price on shares of Home Depot from $345.00 to $330.00 and set a "hold" rating for the company in a research note on Wednesday, November 19th. The Goldman Sachs Group reiterated a "buy" rating and issued a $413.00 price objective on shares of Home Depot in a research note on Wednesday, December 10th. Zacks Research downgraded Home Depot from a "hold" rating to a "strong sell" rating in a research report on Thursday, November 27th. KGI Securities lowered Home Depot from an "outperform" rating to a "hold" rating and set a $320.00 target price on the stock. in a research note on Wednesday, November 19th. Finally, Wall Street Zen downgraded Home Depot from a "hold" rating to a "sell" rating in a research note on Friday, November 28th. Twenty-one equities research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $402.07.

Home Depot Stock Performance

The business has a 50 day moving average of $366.01 and a 200-day moving average of $378.87. The company has a market capitalization of $343.90 billion, a P/E ratio of 23.55, a price-to-earnings-growth ratio of 13.29 and a beta of 1.06. The company has a debt-to-equity ratio of 3.82, a quick ratio of 0.29 and a current ratio of 1.05.

Home Depot (NYSE:HD - Get Free Report) last posted its earnings results on Tuesday, November 18th. The home improvement retailer reported $3.74 earnings per share for the quarter, missing analysts' consensus estimates of $3.83 by ($0.09). Home Depot had a net margin of 8.77% and a return on equity of 160.74%. The company had revenue of $41.35 billion for the quarter, compared to analysts' expectations of $41.06 billion. During the same period in the previous year, the firm earned $3.78 EPS. The firm's quarterly revenue was up 2.8% compared to the same quarter last year. Home Depot has set its FY 2025 guidance at 14.478-14.478 EPS. On average, sell-side analysts predict that The Home Depot, Inc. will post 15.13 EPS for the current fiscal year.

Home Depot Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, December 18th. Shareholders of record on Thursday, December 4th were paid a $2.30 dividend. The ex-dividend date was Thursday, December 4th. This represents a $9.20 annualized dividend and a yield of 2.7%. Home Depot's dividend payout ratio is currently 62.71%.

Insider Buying and Selling at Home Depot

In related news, EVP Angie Brown sold 1,946 shares of Home Depot stock in a transaction on Friday, December 12th. The stock was sold at an average price of $357.63, for a total transaction of $695,947.98. Following the completion of the sale, the executive vice president owned 3,941 shares of the company's stock, valued at approximately $1,409,419.83. This trade represents a 33.06% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Ann Marie Campbell sold 145 shares of the business's stock in a transaction dated Thursday, December 11th. The stock was sold at an average price of $358.26, for a total value of $51,947.70. Following the transaction, the executive vice president owned 12,320 shares of the company's stock, valued at approximately $4,413,763.20. The trade was a 1.16% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.10% of the stock is owned by company insiders.

Institutional Trading of Home Depot

Institutional investors and hedge funds have recently modified their holdings of the business. Vanguard Group Inc. lifted its position in Home Depot by 0.3% during the third quarter. Vanguard Group Inc. now owns 98,310,031 shares of the home improvement retailer's stock valued at $39,834,241,000 after purchasing an additional 331,217 shares during the last quarter. State Street Corp lifted its holdings in shares of Home Depot by 0.7% during the 2nd quarter. State Street Corp now owns 46,015,836 shares of the home improvement retailer's stock worth $16,871,246,000 after acquiring an additional 300,352 shares during the last quarter. Geode Capital Management LLC lifted its holdings in shares of Home Depot by 1.4% during the 2nd quarter. Geode Capital Management LLC now owns 22,978,809 shares of the home improvement retailer's stock worth $8,394,611,000 after acquiring an additional 327,674 shares during the last quarter. Charles Schwab Investment Management Inc. grew its position in Home Depot by 1.1% in the second quarter. Charles Schwab Investment Management Inc. now owns 14,568,860 shares of the home improvement retailer's stock worth $5,341,724,000 after acquiring an additional 153,582 shares in the last quarter. Finally, Norges Bank bought a new position in Home Depot in the second quarter valued at $4,885,603,000. Hedge funds and other institutional investors 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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