Home Depot (NYSE:HD) Trading Up 1.1% - Still a Buy?

Key Points

• Home Depot shares rose 1.1% to about $340.91 on Monday with trading volume below average, and analysts maintain a consensus rating of "Moderate Buy" with a consensus target of $414.17 despite mixed price-target revisions.
• The company posted an earnings beat—EPS $2.72 vs. $2.52 consensus—and revenue of $38.20B (slightly above estimates) but down 3.8% year‑over‑year; Home Depot set FY2026 guidance of $14.23–$14.799 EPS while analysts expect roughly $15.13 for the fiscal year.
• Home Depot raised its quarterly dividend to $2.33 (annualized $9.32, ~2.7% yield) and disclosed a CFO sale of 2,550 shares, while institutional investors own about 70.9% of the stock.

The Home Depot, Inc. (NYSE:HD - Get Free Report)'s share price was up 1.1% on Monday . The company traded as high as $341.44 and last traded at $340.9050. Approximately 3,734,494 shares changed hands during mid-day trading, a decline of 12% from the average daily volume of 4,232,195 shares. The stock had previously closed at $337.34.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on HD. Piper Sandler decreased their target price on shares of Home Depot from $441.00 to $422.00 and set an "overweight" rating on the stock in a research note on Monday, February 23rd. Citigroup raised their target price on shares of Home Depot from $407.00 to $450.00 and gave the stock a "buy" rating in a research note on Thursday, February 12th. Morgan Stanley raised their target price on shares of Home Depot from $412.00 to $420.00 and gave the stock an "overweight" rating in a research note on Wednesday, February 25th. BNP Paribas Exane cut their price target on shares of Home Depot from $391.00 to $348.00 and set a "neutral" rating for the company in a report on Tuesday, March 24th. Finally, Guggenheim raised their price target on shares of Home Depot from $400.00 to $425.00 and gave the stock a "buy" rating in a report on Wednesday, February 25th. Twenty equities research 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's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $414.17.

Home Depot Trading Up 1.1%

The company's 50 day simple moving average is $356.43 and its 200 day simple moving average is $364.40. The firm has a market cap of $339.55 billion, a price-to-earnings ratio of 23.96, a P/E/G ratio of 3.69 and a beta of 1.09. 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 posted its quarterly earnings results on Tuesday, February 24th. The home improvement retailer reported $2.72 EPS for the quarter, topping the consensus estimate 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 company's quarterly revenue was down 3.8% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $3.13 earnings per share. Home Depot has set its FY 2026 guidance at 14.230-14.799 EPS. As a group, research analysts expect that The Home Depot, Inc. will post 15.13 earnings per share for the current fiscal year.

Home Depot Increases Dividend

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

Insider Activity

In other news, CFO Richard V. Mcphail sold 2,550 shares of Home Depot 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 sale, the chief financial officer directly 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 position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 0.10% of the company's stock.

Institutional Investors Weigh In On Home Depot

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. lifted its position in Home Depot by 1.3% in the fourth quarter. Vanguard Group Inc. now owns 99,635,779 shares of the home improvement retailer's stock valued at $34,284,672,000 after acquiring an additional 1,325,748 shares during the last quarter. State Street Corp increased its stake in Home Depot by 1.8% in the fourth quarter. State Street Corp now owns 46,925,342 shares of the home improvement retailer's stock valued at $16,147,010,000 after purchasing an additional 825,164 shares during the period. Geode Capital Management LLC increased its stake in Home Depot by 1.5% in the fourth quarter. Geode Capital Management LLC now owns 23,756,142 shares of the home improvement retailer's stock valued at $8,151,344,000 after purchasing an additional 343,153 shares during the period. Bank of America Corp DE increased its stake in Home Depot by 5.6% in the fourth quarter. Bank of America Corp DE now owns 16,063,532 shares of the home improvement retailer's stock valued at $5,527,461,000 after purchasing an additional 851,029 shares during the period. Finally, Charles Schwab Investment Management Inc. increased its stake in Home Depot by 7.8% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 15,471,132 shares of the home improvement retailer's stock valued at $5,323,620,000 after purchasing an additional 1,113,114 shares during the period. 70.86% of the stock is owned by hedge funds and other institutional investors.

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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