Home Depot (NYSE:HD) Trading Up 2.7% - Here's What Happened

Key Points

• Home Depot shares rose 2.7% to approximately $305.34 on increased trading volume, though they remained below the 50-day and 200-day moving averages near $330.50.
• The company reported stronger-than-expected quarterly results, with EPS of $4.92 and revenue of $47.86 billion, while investments in its professional-customer business are showing traction. Analysts maintain a “Moderate Buy” consensus with an average price target of $375.18.
• Key risks include a “frozen” U.S. housing market, cautious discretionary spending, higher costs and interest rates, and a lowered long-term EPS forecast. Home Depot pays a quarterly dividend of $2.33, yielding about 3.1% annually.

The Home Depot, Inc. (NYSE:HD - Get Free Report) shares traded up 2.7% during trading on Tuesday . The company traded as high as $306.31 and last traded at $305.3410. 5,437,021 shares changed hands during trading, an increase of 25% from the average session volume of 4,359,617 shares. The stock had previously closed at $297.20.

More Home Depot News

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

• Positive Sentiment: Home Depot’s investments in its Pro business— including improved delivery tools, a broader product catalog and better support for complex purchases—appear to be gaining traction. Positive Pro comparable sales could support larger project volumes and strengthen a key growth avenue. Is Home Depot Winning Bigger Projects Through Pro Investments?
• Positive Sentiment: A separate market analysis cited a 7.9% year-over-year increase in consumer demand in August and identified Home Depot as one of the retailers positioned to benefit despite recent weakness in retail stocks. 3 Retail Dips Backed by Rising Consumer Demand
• Neutral Sentiment: Home Depot co-founder Ken Langone discussed his bullish outlook for Eli Lilly during a television appearance. The comments provide historical context on his Home Depot investment but do not represent a new company-specific catalyst. His Bet On Home Depot Made Ken Langone A Billionaire
• Negative Sentiment: Home Depot’s CFO reportedly warned that the U.S. housing market is effectively “frozen,” with a key housing metric at a historic low. Weak housing turnover can delay renovation activity and pressure demand for big-ticket projects. Home Depot CFO Issues Warning Over Frozen Housing Market
• Negative Sentiment: Consumer discretionary stocks have significantly lagged staples in 2026, reflecting a more cautious spending environment that could weigh on Home Depot’s valuation and near-term sales outlook. Staples ETF Widens Gap Over Discretionary in 2026
• Negative Sentiment: Erste Group Bank lowered its fiscal 2028 EPS forecast for Home Depot, signaling weaker long-term earnings expectations. Tariffs, fuel costs and higher interest rates may also raise operating costs and reduce customers’ willingness to undertake projects. Home Depot FY2028 EPS Forecast Decreased by Erste Group Bank

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on the company. Wells Fargo & Company raised their target price on Home Depot from $360.00 to $400.00 and gave the company an "overweight" rating in a report on Tuesday, August 11th. KeyCorp reissued a "sector weight" rating on shares of Home Depot in a research report on Wednesday, August 19th. UBS Group restated a "buy" rating on shares of Home Depot in a research note on Thursday, September 17th. Gordon Haskett lifted their price objective on shares of Home Depot from $320.00 to $330.00 in a report on Friday, June 12th. Finally, DA Davidson reiterated a "buy" rating and issued a $377.00 target price on shares of Home Depot in a research note on Wednesday, August 19th. Eighteen investment analysts have rated the stock with a Buy rating, thirteen have assigned 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 an average target price of $375.18.

Home Depot Stock Up 2.7%

The company has a market capitalization of $304.64 billion, a PE ratio of 21.37, a P/E/G ratio of 3.30 and a beta of 0.95. The stock's fifty day moving average is $330.51 and its two-hundred day moving average is $330.55. The company has a current ratio of 1.08, a quick ratio of 0.31 and a debt-to-equity ratio of 2.64.

Home Depot (NYSE:HD - Get Free Report) last announced its quarterly earnings data on Tuesday, August 18th. The home improvement retailer reported $4.92 EPS for the quarter, topping the consensus estimate 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 for the quarter, compared to analyst estimates of $47.24 billion. During the same quarter in the previous year, the firm posted $4.68 earnings per share. The company's revenue for the quarter was up 5.7% on a year-over-year basis. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. As a group, analysts predict that The Home Depot, Inc. will post 15 EPS for the current year.

Home Depot Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, September 17th. Shareholders of record on Thursday, September 3rd were paid a $2.33 dividend. The ex-dividend date was Thursday, September 3rd. This represents a $9.32 annualized dividend and a dividend yield of 3.1%. Home Depot's payout ratio is presently 65.22%.

Insider Transactions at Home Depot

In related news, CAO Kimberly R. Scardino sold 675 shares of the business's stock in a transaction 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 sale, the chief accounting officer directly owned 8,189 shares in the company, valued at approximately $2,505,424.55. The trade was a 7.62% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Richard V. Mcphail sold 5,989 shares of the company's stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $348.40, for a total value of $2,086,567.60. Following the sale, the chief financial officer owned 48,104 shares in the company, valued at approximately $16,759,433.60. This represents a 11.07% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 9,829 shares of company stock worth $3,339,314 over the last quarter. 0.08% of the stock is currently owned by corporate insiders.

Institutional Trading of Home Depot

Institutional investors and hedge funds have recently bought and sold shares of the company. Zeit Capital LLC bought a new stake in shares of Home Depot during the 2nd quarter valued at about $26,000. Cache Advisors LLC purchased a new stake in Home Depot in the first quarter valued at approximately $27,000. Merkkuri Wealth Advisors LLC bought a new stake in Home Depot during the first quarter valued at approximately $28,000. Abound Financial LLC purchased a new position in Home Depot in the 4th quarter worth approximately $29,000. Finally, Osbon Capital Management LLC bought a new position in shares of Home Depot in the 4th quarter worth $29,000. 70.86% of the stock is currently owned by hedge funds and other institutional investors.

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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