Home Depot (NYSE:HD) Trading 3.6% Higher - Should You Buy?

Key Points

• Shares rose 3.6% on Friday (trading as high as $352.02) with volume about 17% above average, driving a notable intraday move for the stock.
• Acquisition of SIMPL Automation to accelerate same‑day/next‑day fulfillment — pilots reportedly showed faster pick speeds and fewer product touches, which management says should improve throughput, safety and online unit economics.
• Wall Street is broadly positive (20 Buys, 12 Holds, 1 Sell) with an average target of $414.17; Home Depot also beat quarterly EPS expectations, set FY2026 guidance of $14.23–$14.80, and raised its quarterly dividend to $2.33.

Shares of The Home Depot, Inc. (NYSE:HD - Get Free Report) traded up 3.6% on Friday . The company traded as high as $352.02 and last traded at $349.3430. 4,898,548 shares were traded during trading, an increase of 17% from the average session volume of 4,193,965 shares. The stock had previously closed at $337.15.

Home Depot News Roundup

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

• Positive Sentiment: HD announced the acquisition of SIMPL Automation to accelerate same‑day and next‑day fulfillment, bringing AI-driven warehouse engineering that could reduce labor touches and speed order throughput — a clear operational play that investors view as growth and margin enhancing. Home Depot Buys SIMPL Automation to Support Same-Day Delivery
• Positive Sentiment: Company pilots with SIMPL reportedly produced faster pick speeds and fewer product touches, giving proof‑of‑concept that the tech can improve throughput and safety in distribution centers — a near‑term operational benefit that can support unit economics for online fulfillment. Home Depot acquires warehouse tech firm to boost fulfillment strategy
• Positive Sentiment: Broader market tailwinds — news of a Middle East ceasefire and a drop in oil prices — lifted sentiment across equities, helping HD shares alongside company‑specific catalysts. Why Home Depot Stock Is Climbing Friday?
• Neutral Sentiment: HD is pursuing a potential distribution center in Yaphank, NY (seeking a tax break) as part of the same logistics expansion — this signals capacity buildout but involves local approvals and incentives, so impact is medium term. Home Depot eyes same-day, next-day delivery site in New York
• Neutral Sentiment: Longer‑term demand backdrop for home improvement remains supportive: industry forecasts project steady remodeling market growth through 2033, which underpins Home Depot’s addressable market even if near‑term comps and labor/cost dynamics vary. United States Residential Remodeling Industry Report 2025-2033
• Negative Sentiment: Recent short‑term volatility: earlier in the week HD shares had pulled back on profit‑taking/market rotation, indicating investors remain price‑sensitive around multiples and guidance despite operational improvements. Home Depot (HD) Stock Sinks As Market Gains: Here's Why

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on the stock. Robert W. Baird raised their price target on shares of Home Depot from $400.00 to $430.00 and gave the stock an "outperform" rating in a research report on Tuesday, February 17th. Morgan Stanley lifted their price objective on shares of Home Depot from $412.00 to $420.00 and gave the stock an "overweight" rating in a report on Wednesday, February 25th. TD Cowen reaffirmed a "buy" rating on shares of Home Depot in a report on Thursday, March 12th. Piper Sandler decreased their price objective on shares of Home Depot from $441.00 to $422.00 and set an "overweight" rating for the company in a report on Monday, February 23rd. Finally, Wolfe Research lifted their price objective on shares of Home Depot from $413.00 to $414.00 and gave the stock an "outperform" rating in a report on Wednesday, February 25th. Twenty research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Home Depot currently has an average rating of "Moderate Buy" and an average target price of $414.17.

Home Depot Trading Up 3.6%

The stock has a market cap of $347.96 billion, a price-to-earnings ratio of 24.55, a P/E/G ratio of 3.70 and a beta of 1.09. The business's fifty day simple moving average is $353.06 and its 200 day simple moving average is $363.10. The company has a debt-to-equity ratio of 3.62, a current ratio of 1.06 and a quick ratio of 0.26.

Home Depot (NYSE:HD - Get Free Report) last released its quarterly earnings data on Tuesday, February 24th. The home improvement retailer reported $2.72 EPS for the quarter, topping analysts' consensus estimates of $2.52 by $0.20. Home Depot had a net margin of 8.60% and a return on equity of 134.32%. The firm had revenue of $38.20 billion during the quarter, compared to the consensus estimate of $38.01 billion. During the same quarter in the previous year, the company posted $3.13 earnings per share. The firm's 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. On average, research analysts predict that The Home Depot, Inc. will post 15.13 EPS for the current year.

Home Depot Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, March 26th. Stockholders of record on Thursday, March 12th were issued a dividend of $2.33 per share. This represents a $9.32 annualized dividend and a dividend yield of 2.7%. This is a positive change from Home Depot's previous quarterly dividend of $2.30. The ex-dividend date of this dividend was Thursday, March 12th. Home Depot's dividend payout ratio is presently 65.50%.

Insider Activity

In other news, CFO Richard V. Mcphail sold 2,550 shares of the business's stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $368.89, for a total transaction of $940,669.50. Following the completion of the transaction, the chief financial officer owned 44,566 shares of the company's stock, valued at approximately $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 SEC, which can be accessed through the SEC website. Company insiders own 0.10% of the company's stock.

Hedge Funds Weigh In On Home Depot

Hedge funds and other institutional investors have recently modified their holdings of the company. Parvin Asset Management LLC boosted its holdings in shares of Home Depot by 110.0% during the third quarter. Parvin Asset Management LLC now owns 63 shares of the home improvement retailer's stock valued at $26,000 after acquiring an additional 33 shares during the period. Advocate Investing Services LLC acquired a new position in shares of Home Depot during the fourth quarter valued at $25,000. Financially Speaking Inc bought a new stake in shares of Home Depot during the third quarter valued at about $31,000. Key Capital Management INC bought a new stake in shares of Home Depot during the fourth quarter valued at about $28,000. Finally, Imprint Wealth LLC bought a new stake in shares of Home Depot during the third quarter valued at about $34,000. 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.

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.