HSBC Cuts Home Depot (NYSE:HD) Price Target to $310.00

Key Points

• HSBC lowered its price target on Home Depot from $392 to $310 while keeping a hold rating, implying only modest upside from the prior close.
• Despite the cut, Home Depot recently beat first-quarter estimates, posting EPS of $3.43 and revenue of $41.77 billion, and it reaffirmed fiscal 2026 guidance.
• The stock was trading lower and analysts remain mixed overall, though the broader consensus is still a Moderate Buy with an average target around $377.45.

Home Depot (NYSE:HD - Get Free Report) had its price target decreased by HSBC from $392.00 to $310.00 in a research report issued to clients and investors on Wednesday,MarketScreener reports. The firm presently has a "hold" rating on the home improvement retailer's stock. HSBC's price objective would indicate a potential upside of 3.11% from the company's previous close.

Other equities research analysts have also issued research reports about the stock. Royal Bank Of Canada restated a "sector perform" rating and set a $340.00 price target on shares of Home Depot in a report on Wednesday. Gordon Haskett lowered their price objective on shares of Home Depot from $395.00 to $330.00 in a research report on Friday, May 8th. DA Davidson set a $377.00 target price on shares of Home Depot in a research note on Tuesday. UBS Group reaffirmed an "outperform" rating on shares of Home Depot in a research report on Tuesday, March 24th. Finally, The Goldman Sachs Group lowered their price target on Home Depot from $413.00 to $409.00 in a report on Wednesday, February 25th. Twenty research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $377.45.

Home Depot Trading Down 0.6%

Shares of NYSE HD traded down $1.79 during mid-day trading on Wednesday, hitting $300.66. 409,809 shares of the company traded hands, compared to its average volume of 4,271,535. 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 1 year low of $289.10 and a 1 year high of $426.75. The stock has a market capitalization of $299.46 billion, a price-to-earnings ratio of 21.21, a PEG ratio of 3.46 and a beta of 1.00. The business has a 50 day moving average of $329.41 and a two-hundred day moving average of $353.04.

Home Depot (NYSE:HD - Get Free Report) last posted its quarterly earnings data on Tuesday, May 19th. The home improvement retailer reported $3.43 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.41 by $0.02. Home Depot had a return on equity of 134.32% and a net margin of 8.60%.The firm had revenue of $41.77 billion for the quarter, compared to the consensus estimate of $41.59 billion. During the same quarter in the previous year, the company earned $3.56 EPS. The business's revenue for the quarter was up 4.8% compared to the same quarter last year. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. On average, sell-side analysts anticipate that Home Depot will post 15.02 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CFO Richard V. Mcphail sold 2,550 shares of the firm's stock in a transaction dated Wednesday, March 4th. The stock was 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 $16,439,951.74. This trade represents a 5.41% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. 0.08% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Home Depot

A number of hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. lifted its stake 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 raised its holdings in shares of Home Depot by 1.8% during the 4th 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 in the last quarter. Geode Capital Management LLC raised its holdings in shares of Home Depot by 1.5% during the 4th 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 in the last quarter. Bank of America Corp DE lifted its stake in shares of Home Depot by 1.6% in the 1st quarter. Bank of America Corp DE now owns 16,314,357 shares of the home improvement retailer's stock valued at $5,365,629,000 after purchasing an additional 250,825 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. lifted its stake in shares of Home Depot by 7.8% in the 4th 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 last quarter. Institutional investors and hedge funds own 70.86% of the company's stock.

Key Headlines Impacting Home Depot

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

• Positive Sentiment: Home Depot beat first-quarter estimates, reporting EPS of $3.43 versus $3.41 expected and revenue of $41.77 billion versus $41.59 billion expected, while sales rose 4.8% year over year. Home Depot Inc (HD) Q1 2026 Earnings Call Highlights: Navigating Growth Amidst Margin Pressures
• Positive Sentiment: The company reaffirmed fiscal 2026 guidance, which eased investor concerns that weak housing demand and cautious consumers would force a bigger reset. The Home Depot Announces First Quarter Fiscal 2026 Results; Reaffirms Fiscal 2026 Guidance
• Positive Sentiment: Several analysts kept bullish ratings despite trimming price targets, including Telsey, Baird, Mizuho, and Jefferies, signaling Wall Street still sees upside from current levels. Analyst price target changes for Home Depot
• Neutral Sentiment: Management said Pro demand, digital growth, and distribution expansion helped offset weakness in big-ticket projects, suggesting a steady but not strong operating backdrop. HD Q1 Earnings Call Highlights Pro Push, Steady Outlook
• Negative Sentiment: Comparable sales growth was only 0.6% overall and 0.4% in the U.S., reinforcing concerns that higher borrowing costs, affordability pressures, and a weak housing market are limiting demand. Home Depot beats quarterly sales estimates on steady demand
• Negative Sentiment: Some commentary focused on the stock’s sharp decline to a two-year low and the risk that soft housing activity could keep pressure on the shares despite the earnings beat. Home Depot's Earnings Were Solid, but the Stock Hit a 2-Year Low

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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