Home Depot (NYSE:HD) Shares Cross Above 200-Day Moving Average - What's Next?

Key Points

• Home Depot shares crossed above their 200-day moving average, reaching $341.54 and last trading near $341.17, up 3.6%.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $375.31; recent targets range from $342 to $398.
• The company exceeded quarterly earnings and revenue expectations, while paying a quarterly dividend of $2.33 per share, equivalent to a 2.7% annualized yield.

The Home Depot, Inc. (NYSE:HD - Get Free Report) passed above its two hundred day moving average during trading on Monday. The stock has a two hundred day moving average of $334.72 and traded as high as $341.54. Home Depot shares last traded at $341.1670, with a volume of 4,769,131 shares trading hands.

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on the company. Jefferies Financial Group reiterated a "buy" rating and issued a $398.00 target price on shares of Home Depot in a research note on Tuesday, August 18th. Royal Bank Of Canada cut their target price on shares of Home Depot from $343.00 to $342.00 and set a "sector perform" rating on the stock in a research note on Wednesday, August 19th. Truist Financial raised their price objective on Home Depot from $369.00 to $373.00 and gave the stock a "buy" rating in a research note on Wednesday, August 19th. Melius Research set a $397.00 target price on Home Depot in a research note on Tuesday, October 6th. Finally, Sanford C. Bernstein lowered their price target on shares of Home Depot from $354.00 to $344.00 and set a "market perform" rating for the company in a research report on Wednesday, September 9th. One research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, thirteen have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $375.31.

Home Depot Trading Up 3.6%

The firm has a 50 day moving average price of $308.56 and a two-hundred day moving average price of $334.72. The firm has a market capitalization of $340.38 billion, a P/E ratio of 23.87, a price-to-earnings-growth ratio of 2.26 and a beta of 1.00. The company has a debt-to-equity ratio of 2.64, a quick ratio of 0.31 and a current ratio of 1.08.

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

Home Depot Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, September 17th. Stockholders of record on Thursday, September 3rd were issued a dividend of $2.33 per share. The ex-dividend date of this dividend was Thursday, September 3rd. This represents a $9.32 dividend on an annualized basis and a dividend yield of 2.7%. Home Depot's dividend payout ratio is currently 65.22%.

Insider Activity

In related news, CAO Kimberly Scardino sold 675 shares of the firm's stock in a transaction on Thursday, September 10th. The shares were sold at an average price of $305.95, for a total value of $206,516.25. Following the transaction, the chief accounting officer directly owned 8,189 shares in the company, valued at approximately $2,505,424.55. This trade represents a 7.62% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CFO Richard McPhail sold 5,989 shares of Home Depot stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $348.40, for a total value of $2,086,567.60. Following the completion of the transaction, the chief financial officer owned 48,104 shares in the company, valued at $16,759,433.60. The trade was a 11.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 9,829 shares of company stock worth $3,339,314. 0.08% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. BlackRock Inc. bought a new stake in Home Depot during the 2nd quarter worth about $28,771,247,000. State Street Corp lifted its stake in shares of Home Depot by 1.1% in the 2nd quarter. State Street Corp now owns 47,175,026 shares of the home improvement retailer's stock valued at $16,637,688,000 after purchasing an additional 499,168 shares during the period. Bank of America Corp DE acquired a new position in Home Depot in the second quarter valued at about $5,780,468,000. Bank of New York Mellon Corp acquired a new stake in shares of Home Depot in the 2nd quarter valued at approximately $2,777,396,000. Finally, Amundi boosted its position in shares of Home Depot by 26.4% during the second quarter. Amundi now owns 7,339,614 shares of the home improvement retailer's stock worth $2,588,535,000 after purchasing an additional 1,533,276 shares in the last quarter. Institutional investors and hedge funds own 70.86% of the company's stock.

About Home Depot

The Home Depot, Inc is a home improvement retailer serving do-it-yourself customers, professional contractors, and other building and maintenance professionals. The company sells a broad selection of building materials, hardware, tools, appliances, paint, plumbing and electrical supplies, flooring, lighting, lawn and garden products, and home décor.

In addition to merchandise, Home Depot offers services such as product delivery, tool and equipment rental, credit services, and installation for selected products.

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