Home Depot (NYSE:HD) Trading Down 1% - Here's Why

Key Points

• Home Depot shares traded down about 1% intraday to roughly $339 with volume ~21% below average; the company has a market cap of $337.8B and a trailing P/E of 23.8.
• Several firms have raised price targets (e.g., Morgan Stanley to $420, Telsey to $435), leaving a consensus rating of Moderate Buy and an average target of $414.17.
• Home Depot beat the quarter—EPS $2.72 vs. $2.52 expected and $38.2B revenue vs. $38.01B consensus—provided FY2026 EPS guidance of 14.230–14.799, and raised the quarterly dividend to $2.33 (annualized $9.32, yield 2.7%).

The Home Depot, Inc. (NYSE:HD - Get Free Report) traded down 1% during mid-day trading on Wednesday . The stock traded as low as $336.62 and last traded at $339.1580. 3,334,319 shares changed hands during mid-day trading, a decline of 21% from the average session volume of 4,202,420 shares. The stock had previously closed at $342.71.

Analysts Set New Price Targets

HD has been the topic of a number of recent research reports. Morgan Stanley boosted their price objective on Home Depot from $412.00 to $420.00 and gave the stock an "overweight" rating in a research note on Wednesday, February 25th. Royal Bank Of Canada increased their target price on Home Depot from $363.00 to $377.00 and gave the company a "sector perform" rating in a research note on Wednesday, February 25th. Weiss Ratings reiterated a "hold (c+)" rating on shares of Home Depot in a report on Friday, March 27th. Telsey Advisory Group reissued an "outperform" rating and set a $435.00 price target on shares of Home Depot in a research report on Wednesday, March 25th. Finally, Sanford C. Bernstein upped their price target on Home Depot from $381.00 to $390.00 and gave the stock a "market perform" rating in a report on Wednesday, February 25th. Twenty investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Home Depot currently has a consensus rating of "Moderate Buy" and an average target price of $414.17.

Home Depot Stock Down 1.0%

The company has a market capitalization of $337.81 billion, a price-to-earnings ratio of 23.83, a P/E/G ratio of 3.73 and a beta of 1.09. The company has a quick ratio of 0.26, a current ratio of 1.06 and a debt-to-equity ratio of 3.62. The firm has a 50 day moving average price of $354.91 and a two-hundred day moving average price of $363.46.

Home Depot (NYSE:HD - Get Free Report) last posted its quarterly earnings data on Tuesday, February 24th. The home improvement retailer reported $2.72 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.52 by $0.20. The company had revenue of $38.20 billion for the quarter, compared to the consensus estimate of $38.01 billion. Home Depot had a return on equity of 134.32% and a net margin of 8.60%.Home Depot's revenue for the quarter was down 3.8% compared to the same quarter last year. During the same period in the previous year, the business earned $3.13 EPS. Home Depot has set its FY 2026 guidance at 14.230-14.799 EPS. As a group, sell-side analysts expect that The Home Depot, Inc. will post 15.13 earnings per share for the current year.

Home Depot Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, March 26th. Shareholders of record on Thursday, March 12th were paid a dividend of $2.33 per share. This is a positive change 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 yield of 2.7%. Home Depot's payout ratio is currently 65.50%.

Insider Buying and Selling at Home Depot

In other news, CFO Richard V. Mcphail sold 2,550 shares of the company's stock in a transaction dated Wednesday, March 4th. The shares were sold at an average price of $368.89, for a total value of $940,669.50. Following the sale, the chief financial officer owned 44,566 shares in the company, valued at approximately $16,439,951.74. This represents a 5.41% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 0.10% of the company's stock.

Institutional Trading of Home Depot

Several institutional investors and hedge funds have recently bought and sold shares of the company. Brighton Jones LLC lifted its position in shares of Home Depot by 36.5% in the 4th quarter. Brighton Jones LLC now owns 26,918 shares of the home improvement retailer's stock worth $10,471,000 after buying an additional 7,203 shares during the last quarter. Sivia Capital Partners LLC boosted its holdings in shares of Home Depot by 7.1% in the 2nd quarter. Sivia Capital Partners LLC now owns 2,598 shares of the home improvement retailer's stock valued at $952,000 after buying an additional 173 shares during the period. Schnieders Capital Management LLC. grew 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 valued at $4,248,000 after buying an additional 1,433 shares during the last quarter. Darwin Wealth Management LLC acquired a new stake in Home Depot during the second quarter worth about $1,773,000. Finally, Financial Advisors Network Inc. lifted its holdings in Home Depot by 11.3% in the second quarter. Financial Advisors Network Inc. now owns 2,368 shares of the home improvement retailer's stock worth $868,000 after acquiring an additional 241 shares during the last quarter. 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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