Home Depot Sees Unusually Large Options Volume (NYSE:HD)

Key Points

• Home Depot saw unusually heavy call-option activity: Investors purchased 33,592 call options, about 54% above the average volume.
• Wall Street remains broadly positive: Analysts assign the stock a consensus “Moderate Buy” rating with an average price target of $375.93, while institutional investors own 70.86% of shares.
• Shares rose 3.2% to $294.99, despite trading below their 50-day and 200-day moving averages. Home Depot recently reported better-than-expected quarterly earnings and pays a $2.33 quarterly dividend, yielding about 3.2% annually.

The Home Depot, Inc. (NYSE:HD - Get Free Report) was the recipient of some unusual options trading activity on Thursday. Investors purchased 33,592 call options on the company. This is an increase of approximately 54% compared to the average volume of 21,805 call options.

Insider Activity at Home Depot

In related news, EVP Michael Rowe sold 710 shares of the firm's stock in a transaction that occurred on Wednesday, August 26th. The shares were sold at an average price of $336.76, for a total value of $239,099.60. Following the sale, the executive vice president owned 6,838 shares in the company, valued at approximately $2,302,764.88. This trade represents a 9.41% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CAO Kimberly Scardino sold 675 shares of Home Depot stock in a transaction that occurred on Thursday, September 10th. The stock was sold at an average price of $305.95, for a total transaction of $206,516.25. Following the completion of the sale, the chief accounting officer directly owned 8,189 shares of the company's stock, valued at approximately $2,505,424.55. This trade represents a 7.62% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 9,829 shares of company stock valued at $3,339,314. Insiders own 0.08% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. BlackRock Inc. purchased a new stake in shares of Home Depot in the second quarter valued at approximately $28,771,247,000. State Street Corp increased its holdings in Home Depot by 1.1% during the 2nd quarter. State Street Corp now owns 47,175,026 shares of the home improvement retailer's stock worth $16,637,688,000 after purchasing an additional 499,168 shares during the period. Bank of America Corp DE purchased a new position in shares of Home Depot during the second quarter valued at $5,780,468,000. Bank of New York Mellon Corp bought a new position in Home Depot during the 2nd quarter worth about $2,777,396,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its holdings in Home Depot by 1.9% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 8,040,796 shares of the home improvement retailer's stock valued at $2,766,838,000 after buying an additional 152,902 shares during the period. 70.86% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on the stock. UBS Group reaffirmed a "buy" rating on shares of Home Depot in a report on Thursday, September 17th. TD Cowen reaffirmed a "buy" rating on shares of Home Depot in a research note on Monday, August 10th. Weiss Ratings reiterated a "hold (c)" rating on shares of Home Depot in a report on Friday, October 2nd. Guggenheim reissued a "buy" rating and set a $425.00 price objective on shares of Home Depot in a report on Wednesday, August 19th. Finally, DA Davidson reaffirmed a "buy" rating and issued a $377.00 target price on shares of Home Depot in a report on Wednesday, August 19th. Eighteen research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $375.93.

Home Depot Trading Up 3.2%

Shares of NYSE:HD traded up $9.22 during trading on Thursday, reaching $294.99. The company's stock had a trading volume of 3,526,978 shares, compared to its average volume of 4,427,124. Home Depot has a 12 month low of $277.15 and a 12 month high of $397.63. The company has a current ratio of 1.08, a quick ratio of 0.31 and a debt-to-equity ratio of 2.64. The firm's 50 day simple moving average is $319.10 and its two-hundred day simple moving average is $325.60. The stock has a market capitalization of $294.30 billion, a PE ratio of 20.65, a price-to-earnings-growth ratio of 2.04 and a beta of 1.00.

Home Depot (NYSE:HD - Get Free Report) last announced its earnings results on Tuesday, August 18th. The home improvement retailer reported $4.92 EPS for the quarter, topping analysts' consensus estimates of $4.73 by $0.19. The firm had revenue of $47.86 billion during the quarter, compared to analysts' expectations of $47.24 billion. Home Depot had a return on equity of 106.42% and a net margin of 8.41%.The company's quarterly revenue was up 5.7% on a year-over-year basis. During the same quarter in the previous year, the business earned $4.68 EPS. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. On average, research analysts predict that Home Depot will post 15.01 EPS for the current fiscal year.

Home Depot Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, September 17th. Stockholders of record on Thursday, September 3rd were issued a $2.33 dividend. This represents a $9.32 annualized dividend and a dividend yield of 3.2%. The ex-dividend date was Thursday, September 3rd. Home Depot's dividend payout ratio (DPR) is 65.22%.

Trending Headlines about Home Depot

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

• Positive Sentiment: Melius Research initiated coverage with a Buy rating and a $397 price target, implying substantial upside from recent levels. The bullish view is based on an improving outlook for home centers and longer-term demand for home improvement. Home Depot Stock Is Down 17% in 2026. Here’s Why Melius Still Sees $397
• Positive Sentiment: Several analysts have raised earnings expectations ahead of Home Depot’s upcoming results, reinforcing confidence that near-term operating trends may be better than the share price suggests. Should Analyst Upgrades to Earnings Forecasts Require Action From Home Depot Investors?
• Positive Sentiment: Home Depot’s elevated free-cash-flow yield of approximately 5.4% may attract value-oriented investors, particularly as the stock trades at a discount to its historical valuation and the broader market. Why Is Everyone Ignoring Home Depot Stock’s High Cash Yield?
• Neutral Sentiment: The company’s 2026 Innovation Award highlighted products designed to simplify DIY and professional projects. The recognition supports merchandising and customer-engagement efforts but is unlikely to materially affect near-term earnings. The Home Depot Announces 2026 Innovation Award Winners
• Negative Sentiment: Technical analysts warn that the area near $288 could act as resistance; failure to regain that level may renew selling pressure. Stock of the Day: Will Home Depot Continue to Trend Lower?
• Negative Sentiment: Interest rates remain a major overhang because higher borrowing costs can delay home purchases, renovations and other big-ticket projects. Consumer-sector weakness and Home Depot’s roughly 15% year-to-date decline underscore those concerns. Jim Cramer Sees Little Relief for Home Depot Until Rates Fall

About Home Depot

The Home Depot, Inc NYSE: HD is a home improvement retailer serving do-it-yourself customers, professional contractors, and other trade professionals. The company sells building materials, appliances, décor, hardware, plumbing and electrical supplies, tools, outdoor products, and lawn and garden merchandise through its retail stores and digital platforms.

Home Depot also provides services such as installation, equipment rental, delivery, and project support. Its professional customer offerings include job-lot quantities, delivery solutions, credit services, and tools designed to help contractors manage construction and renovation projects.

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