Sanford C. Bernstein Has Lowered Expectations for Home Depot (NYSE:HD) Stock Price

Key Points

• Sanford C. Bernstein lowered its price target on Home Depot from $390 to $365 and kept a market perform rating, implying more cautious expectations for the stock.
• Home Depot shares were down about 2.5% and traded around $302.65, near the lower end of their 52-week range, reflecting recent weakness in the stock.
• Analyst opinion remains mixed overall: the stock still carries a Moderate Buy consensus, with 20 Buy ratings versus 12 Holds and 1 Sell, and a consensus target of $407.24.

Home Depot (NYSE:HD - Get Free Report) had its price target reduced by analysts at Sanford C. Bernstein from $390.00 to $365.00 in a research report issued on Thursday,Benzinga reports. The firm presently has a "market perform" rating on the home improvement retailer's stock. Sanford C. Bernstein's price objective would suggest a potential upside of 20.60% from the company's current price.

A number of other analysts have also weighed in on HD. Robert W. Baird upped their price target on shares of Home Depot from $400.00 to $430.00 and gave the stock an "outperform" rating in a research note on Tuesday, February 17th. Daiwa Securities Group increased their target price on shares of Home Depot from $360.00 to $390.00 and gave the company a "neutral" rating in a research note on Thursday, February 26th. Truist Financial cut their target price on shares of Home Depot from $424.00 to $394.00 and set a "buy" rating for the company in a research note on Wednesday. Gordon Haskett cut their target price on shares of Home Depot from $395.00 to $330.00 in a research note on Friday, May 8th. Finally, UBS Group reissued an "outperform" rating on shares of Home Depot in a research note on Tuesday, March 24th. Twenty research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $407.24.

Home Depot Trading Down 2.5%

Shares of NYSE:HD opened at $302.65 on Thursday. The company has a 50 day moving average of $334.45 and a 200-day moving average of $355.37. The firm has a market cap of $301.45 billion, a P/E ratio of 21.27, a P/E/G ratio of 3.58 and a beta of 1.00. Home Depot has a twelve month low of $299.27 and a twelve month high of $426.75. The company has a current ratio of 1.06, a quick ratio of 0.26 and a debt-to-equity ratio of 3.62.

Home Depot (NYSE:HD - Get Free Report) last issued its quarterly earnings results on Tuesday, February 24th. The home improvement retailer reported $2.72 earnings per share for the quarter, topping analysts' consensus estimates of $2.52 by $0.20. The company had revenue of $38.20 billion during the quarter, compared to analyst estimates of $38.01 billion. Home Depot had a net margin of 8.60% and a return on equity of 134.32%. The business's revenue for the quarter was down 3.8% compared to the same quarter last year. During the same period in the prior year, the business posted $3.13 EPS. Home Depot has set its FY 2026 guidance at 14.230-14.799 EPS. As a group, analysts anticipate that Home Depot will post 15.03 earnings per share for the current fiscal year.

Insider Activity

In other news, CFO Richard V. Mcphail sold 2,550 shares of the business's stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $368.89, for a total transaction of $940,669.50. Following the sale, the chief financial officer owned 44,566 shares in the company, valued at $16,439,951.74. The trade was a 5.41% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.08% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Home Depot

Large investors have recently made changes to their positions in the company. Parvin Asset Management LLC raised its holdings in shares of Home Depot by 110.0% during the third quarter. Parvin Asset Management LLC now owns 63 shares of the home improvement retailer's stock valued at $26,000 after acquiring an additional 33 shares during the period. Advocate Investing Services LLC acquired a new position in Home Depot in the 4th quarter valued at approximately $25,000. Financially Speaking Inc acquired a new position in Home Depot in the 3rd quarter valued at approximately $31,000. Key Capital Management INC acquired a new position in Home Depot in the 4th quarter valued at approximately $28,000. Finally, Cache Advisors LLC acquired a new position in Home Depot in the 1st quarter valued at approximately $27,000. Institutional investors and hedge funds own 70.86% of the company's stock.

More Home Depot News

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

• Positive Sentiment: J.P. Morgan reaffirmed a Buy on Home Depot, citing resilient spring demand, strength among professional customers, and continued momentum in big-ticket sales. Analyst Reaffirms Buy on Home Depot, Citing Resilient Spring Demand, Pro Strength, and Big-Ticket Sales Momentum
• Positive Sentiment: Some investors continue to see Home Depot’s dividend as a draw, with recent coverage highlighting it as a high-quality blue-chip income stock. The Home Depot (HD) – Among the 12 Best Blue Chip Dividend Stocks to Buy Now
• Positive Sentiment: Mortgage rates hit a five-week high, but buyers are returning to the housing market, which could support demand for home-improvement spending and benefit Home Depot. Mortgage Rates Hit Five-Week Highs—But Homebuyers Are Returning, Boosting Home Depot, Lowe's And Other Builders
• Neutral Sentiment: Truist lowered its price target on Home Depot to $394 from $424, but kept a Buy rating, signaling continued confidence despite a more cautious valuation view. Truist Cuts Price Target on Home Depot to $394 from $424, Keeps Buy Rating
• Neutral Sentiment: Several articles note that Home Depot has been trading down ahead of earnings, reflecting investor caution rather than a clear change in the company’s fundamentals. Blue-Chip Stock Seeing a Pre-Earnings Pullback
• Negative Sentiment: Analysts expect Home Depot to report a decline in earnings, and recent previews suggest the upcoming results may not be strong enough to quickly reverse the stock’s recent weakness. Analysts Estimate Home Depot (HD) to Report a Decline in Earnings: What to Look Out for
• Negative Sentiment: Broader housing-sector weakness is weighing on sentiment across home-improvement and building names, keeping pressure on HD even as the market overall holds up. Housing Stocks Are in Depression Mode. Whirlpool Down 81%, Lennar Crashed 54% While the S&P 500 Soars.

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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