Home Depot Target of Unusually Large Options Trading (NYSE:HD)

Key Points

• Investors bought an unusually large number of puts—45,863 contracts on Wednesday, about a 48% increase versus the average daily put volume, signaling heightened bearish positioning or hedging activity.
• Two insiders sold shares recently: EVP Teresa Wynn Roseborough offloaded 2,872 shares (~$1.0M) and CFO Richard V. McPhail sold 2,550 shares (~$940.7k), reducing their ownership; insiders now hold about 0.10% of the company.
• Home Depot shares fell about 3.1% to $330.75 mid‑day despite an EPS beat ($2.72 vs. $2.52), and the company raised its quarterly dividend to $2.33 (annualized $9.32, ~2.8% yield).

The Home Depot, Inc. (NYSE:HD - Get Free Report) saw unusually large options trading on Wednesday. Stock investors acquired 45,863 put options on the stock. This represents an increase of 48% compared to the average daily volume of 31,000 put options.

Insider Activity at Home Depot

In related news, EVP Teresa Wynn Roseborough sold 2,872 shares of the stock in a transaction that occurred on Friday, December 26th. The stock was sold at an average price of $348.52, for a total value of $1,000,949.44. Following the completion of the transaction, the executive vice president directly owned 13,196 shares in the company, valued at approximately $4,599,069.92. This represents a 17.87% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, 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 value of $940,669.50. Following the completion of the sale, the chief financial officer owned 44,566 shares in the company, valued at $16,439,951.74. This represents a 5.41% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.10% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Parvin Asset Management LLC raised its stake in Home Depot by 110.0% in the third quarter. Parvin Asset Management LLC now owns 63 shares of the home improvement retailer's stock valued at $26,000 after buying an additional 33 shares in the last quarter. Advocate Investing Services LLC acquired a new position in shares of Home Depot during the 4th quarter worth about $25,000. Financially Speaking Inc purchased a new position in shares of Home Depot in the 3rd quarter valued at about $31,000. Sagard Holdings Management Inc. acquired a new stake in shares of Home Depot during the 2nd quarter worth about $29,000. Finally, Key Capital Management INC purchased a new stake in Home Depot during the fourth quarter worth approximately $28,000. Institutional investors and hedge funds own 70.86% of the company's stock.

Analyst Ratings Changes

Several research analysts have weighed in on HD shares. Gordon Haskett increased their target price on shares of Home Depot from $330.00 to $370.00 and gave the stock a "hold" rating in a research note on Wednesday, February 11th. Oppenheimer dropped their target price on shares of Home Depot from $420.00 to $405.00 and set a "market perform" rating for the company in a report on Friday, December 5th. Daiwa Securities Group upped their price target on Home Depot from $360.00 to $390.00 and gave the stock a "neutral" rating in a research note on Thursday, February 26th. KGI Securities lowered Home Depot from an "outperform" rating to a "hold" rating and set a $320.00 price target for the company. in a research report on Wednesday, November 19th. Finally, Bank of America dropped their price objective on Home Depot from $450.00 to $430.00 and set a "buy" rating for the company in a research note on Wednesday, November 19th. Twenty investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Home Depot has an average rating of "Moderate Buy" and a consensus price target of $416.00.

Home Depot Stock Down 3.1%

Home Depot stock traded down $10.68 during mid-day trading on Wednesday, reaching $330.75. 3,521,502 shares of the company's stock were exchanged, compared to its average volume of 4,164,406. The company has a quick ratio of 0.26, a current ratio of 1.06 and a debt-to-equity ratio of 3.62. Home Depot has a twelve month low of $326.31 and a twelve month high of $426.75. The company has a market cap of $329.27 billion, a P/E ratio of 23.24, a P/E/G ratio of 12.32 and a beta of 1.09. The company has a fifty day moving average of $373.62 and a 200-day moving average of $375.45.

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. Home Depot had a net margin of 8.60% and a return on equity of 134.32%. The business 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 firm posted $3.13 earnings per share. The company's quarterly revenue was down 3.8% compared to the same quarter last year. Home Depot has set its FY 2026 guidance at 14.230-14.799 EPS. Sell-side analysts expect that Home Depot will post 15.13 EPS for the current year.

Home Depot Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, March 26th. Investors of record on Thursday, March 12th will be paid a dividend of $2.33 per share. The ex-dividend date is Thursday, March 12th. This is a positive change from Home Depot's previous quarterly dividend of $2.30. This represents a $9.32 dividend on an annualized basis and a dividend yield of 2.8%. Home Depot's payout ratio is currently 65.50%.

About Home Depot

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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