Home Depot (NYSE:HD) Shares Down 1.7% - What's Next?

Key Points

• Home Depot shares fell 1.7% to about $305.52, below both the 50-day and 200-day moving averages near $333. The stock has a market capitalization of approximately $304.8 billion.
• Analysts remain broadly positive, with 18 Buy, 13 Hold, and one Sell rating, producing a “Moderate Buy” consensus and an average price target of $375.18, although several firms recently lowered their targets.
• The company exceeded quarterly expectations, reporting $4.92 in EPS and $47.86 billion in revenue, while revenue increased 5.7% year over year. Home Depot also declared a quarterly dividend of $2.33 per share, equivalent to a 3.1% annualized yield.

The Home Depot, Inc. (NYSE:HD - Get Free Report)'s stock price traded down 1.7% on Tuesday . The stock traded as low as $304.32 and last traded at $305.5240. Approximately 4,464,682 shares traded hands during mid-day trading, an increase of 3% from the average session volume of 4,331,235 shares. The stock had previously closed at $310.87.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on HD shares. BNP Paribas Exane cut their price target on Home Depot from $348.00 to $325.00 and set a "neutral" rating for the company in a research note on Tuesday, May 19th. UBS Group cut their target price on Home Depot from $430.00 to $420.00 and set a "buy" rating on the stock in a research report on Wednesday, August 19th. Truist Financial increased their price objective on shares of Home Depot from $369.00 to $373.00 and gave the stock a "buy" rating in a research report on Wednesday, August 19th. Robert W. Baird reduced their target price on shares of Home Depot from $430.00 to $380.00 and set an "outperform" rating on the stock in a research report on Wednesday, May 20th. Finally, Telsey Advisory Group lowered their price objective on shares of Home Depot from $435.00 to $410.00 and set an "outperform" rating for the company in a research note on Wednesday, May 20th. Eighteen research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, Home Depot has a consensus rating of "Moderate Buy" and an average price target of $375.18.

Home Depot Stock Performance

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 has a market cap of $304.82 billion, a PE ratio of 21.38, a price-to-earnings-growth ratio of 3.40 and a beta of 0.95. The firm has a fifty day moving average price of $334.35 and a 200 day moving average price of $333.08.

Home Depot (NYSE:HD - Get Free Report) last announced its quarterly earnings results on Tuesday, August 18th. The home improvement retailer reported $4.92 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.73 by $0.19. Home Depot had a net margin of 8.41% and a return on equity of 106.42%. The business had revenue of $47.86 billion during the quarter, compared to the consensus estimate of $47.24 billion. During the same quarter last year, the firm earned $4.68 EPS. The business's revenue was up 5.7% compared to the same quarter last year. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. As a group, equities research analysts expect that The Home Depot, Inc. will post 15 earnings per share for the current fiscal year.

Home Depot Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 17th. Shareholders of record on Thursday, September 3rd will be given a dividend of $2.33 per share. This represents a $9.32 annualized dividend and a yield of 3.1%. The ex-dividend date of this dividend is Thursday, September 3rd. Home Depot's dividend payout ratio (DPR) is presently 65.22%.

Insider Buying and Selling

In related news, CAO Kimberly Scardino sold 675 shares of the business's stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of $305.95, for a total value of $206,516.25. Following the transaction, the chief accounting officer owned 8,189 shares in the company, valued at $2,505,424.55. The trade was a 7.62% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, EVP Teresa Roseborough sold 2,455 shares of the company's stock in a transaction on Friday, August 28th. The stock was sold at an average price of $328.77, for a total transaction of $807,130.35. Following the transaction, the executive vice president owned 14,061 shares of the company's stock, valued at approximately $4,622,834.97. The trade was a 14.86% decrease in their position. 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. Corporate insiders own 0.08% of the company's stock.

Institutional Trading of Home Depot

Institutional investors and hedge funds have recently modified their holdings of the business. Curio Wealth LLC increased its stake in shares of Home Depot by 13.5% in the 4th quarter. Curio Wealth LLC now owns 218 shares of the home improvement retailer's stock valued at $76,000 after acquiring an additional 26 shares in the last quarter. Intrua Financial LLC boosted its stake in Home Depot by 1.6% during the fourth quarter. Intrua Financial LLC now owns 1,940 shares of the home improvement retailer's stock worth $668,000 after acquiring an additional 30 shares in the last quarter. Weaver Consulting Group boosted its stake in Home Depot by 1.0% during the fourth quarter. Weaver Consulting Group now owns 2,986 shares of the home improvement retailer's stock worth $1,028,000 after acquiring an additional 30 shares in the last quarter. Evelyn Partners Asset Management Ltd grew its holdings in Home Depot by 13.2% in the fourth quarter. Evelyn Partners Asset Management Ltd now owns 257 shares of the home improvement retailer's stock worth $88,000 after purchasing an additional 30 shares during the period. Finally, South Plains Financial Inc. grew its holdings in Home Depot by 1.4% in the fourth quarter. South Plains Financial Inc. now owns 2,225 shares of the home improvement retailer's stock worth $766,000 after purchasing an additional 30 shares during the period. Hedge funds and other institutional investors own 70.86% of the company's stock.

About Home Depot

The Home Depot, Inc is a home improvement retailer that sells building materials, appliances, decor, hardware, tools, paint, lawn and garden products, and related merchandise. The company serves do-it-yourself customers, professional contractors, homebuilders, and other commercial customers through its retail stores and digital platforms.

Home Depot also provides services such as equipment and tool rental, delivery, installation, and project support. Its professional-focused offerings include job-lot quantities, specialized products, credit services, and account support designed for contractors and other trade customers.

Founded in 1978 by Bernie Marcus, Arthur Blank, Ken Langone, and Pat Farrah, the company is headquartered in Atlanta, Georgia.

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