The Goldman Sachs Group Has Lowered Expectations for Home Depot (NYSE:HD) Stock Price

Key Points

• Goldman Sachs lowered its price target on Home Depot from $409 to $390, but it kept a buy rating on the stock. The new target still implies about 29.7% upside from the previous close.
• Other analysts also trimmed expectations, including Stifel Nicolaus, Morgan Stanley, Mizuho, and RBC, though the overall Wall Street view remains Moderate Buy with a consensus price target of $377.45.
• Home Depot shares fell about 0.6% to $300.66 even after the company recently beat quarterly earnings and revenue estimates and reaffirmed its fiscal 2026 guidance. The stock has been pressured by concerns over weak housing demand and soft comparable sales growth.

Home Depot (NYSE:HD - Get Free Report) had its price target reduced by investment analysts at The Goldman Sachs Group from $409.00 to $390.00 in a research report issued on Wednesday,MarketScreener reports. The brokerage currently has a "buy" rating on the home improvement retailer's stock. The Goldman Sachs Group's price target would suggest a potential upside of 29.72% from the stock's previous close.

Several other equities research analysts have also commented on the stock. Stifel Nicolaus cut their price target on shares of Home Depot from $375.00 to $320.00 and set a "hold" rating on the stock in a research note on Monday. Weiss Ratings restated a "hold (c+)" rating on shares of Home Depot in a research note on Friday, March 27th. Morgan Stanley dropped their price objective on Home Depot from $420.00 to $400.00 and set an "overweight" rating on the stock in a report on Wednesday. Mizuho cut their target price on Home Depot from $415.00 to $385.00 and set an "outperform" rating on the stock in a research report on Wednesday. Finally, Royal Bank Of Canada reissued a "sector perform" rating and issued a $340.00 target price on shares of Home Depot in a report on Wednesday. Twenty analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $377.45.

Home Depot Stock Down 0.6%

HD stock traded down $1.79 during trading on Wednesday, hitting $300.66. 409,809 shares of the company's stock were exchanged, compared to its average volume of 4,271,535. The business has a 50-day moving average price of $329.41 and a two-hundred day moving average price of $353.04. The company has a current ratio of 1.06, a quick ratio of 0.26 and a debt-to-equity ratio of 3.62. The stock has a market capitalization of $299.46 billion, a price-to-earnings ratio of 21.21, a PEG ratio of 3.46 and a beta of 1.00. Home Depot has a 52-week low of $289.10 and a 52-week high of $426.75.

Home Depot (NYSE:HD - Get Free Report) last announced its quarterly earnings results on Tuesday, May 19th. The home improvement retailer reported $3.43 EPS for the quarter, beating the consensus estimate of $3.41 by $0.02. The company had revenue of $41.77 billion for the quarter, compared to analyst estimates of $41.59 billion. Home Depot had a net margin of 8.60% and a return on equity of 134.32%. The firm's revenue was up 4.8% on a year-over-year basis. During the same period in the prior year, the firm posted $3.56 earnings per share. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. As a group, equities research analysts expect that Home Depot will post 15.02 EPS for the current year.

Insiders Place Their Bets

In other Home Depot news, CFO Richard V. Mcphail sold 2,550 shares of Home Depot stock in a transaction dated Wednesday, March 4th. The shares were sold at an average price of $368.89, for a total transaction of $940,669.50. Following the completion of the transaction, the chief financial officer owned 44,566 shares in the company, valued at approximately $16,439,951.74. The trade was a 5.41% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Company insiders own 0.08% of the company's stock.

Institutional Trading of Home Depot

Several large investors have recently modified their holdings of the business. Western Wealth Management LLC raised its position in shares of Home Depot by 82.7% during the 1st quarter. Western Wealth Management LLC now owns 23,104 shares of the home improvement retailer's stock worth $7,599,000 after purchasing an additional 10,458 shares during the last quarter. Orographic Financial Advisors LLC purchased a new position in Home Depot during the first quarter worth $1,152,000. Cornerstone Wealth LLC TN acquired a new position in shares of Home Depot in the first quarter worth $794,000. Royal Fund Management LLC lifted its position in shares of Home Depot by 2.5% in the first quarter. Royal Fund Management LLC now owns 2,286 shares of the home improvement retailer's stock valued at $752,000 after acquiring an additional 56 shares in the last quarter. Finally, Ariadne Wealth Management LP lifted its position in shares of Home Depot by 1.2% in the first quarter. Ariadne Wealth Management LP now owns 3,501 shares of the home improvement retailer's stock valued at $1,151,000 after acquiring an additional 40 shares in the last quarter. 70.86% of the stock is currently owned by institutional investors and hedge funds.

Home Depot News Summary

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

• Positive Sentiment: Home Depot beat first-quarter estimates, reporting EPS of $3.43 versus $3.41 expected and revenue of $41.77 billion versus $41.59 billion expected, while sales rose 4.8% year over year. Home Depot Inc (HD) Q1 2026 Earnings Call Highlights: Navigating Growth Amidst Margin Pressures
• Positive Sentiment: The company reaffirmed fiscal 2026 guidance, which eased investor concerns that weak housing demand and cautious consumers would force a bigger reset. The Home Depot Announces First Quarter Fiscal 2026 Results; Reaffirms Fiscal 2026 Guidance
• Positive Sentiment: Several analysts kept bullish ratings despite trimming price targets, including Telsey, Baird, Mizuho, and Jefferies, signaling Wall Street still sees upside from current levels. Analyst price target changes for Home Depot
• Neutral Sentiment: Management said Pro demand, digital growth, and distribution expansion helped offset weakness in big-ticket projects, suggesting a steady but not strong operating backdrop. HD Q1 Earnings Call Highlights Pro Push, Steady Outlook
• Negative Sentiment: Comparable sales growth was only 0.6% overall and 0.4% in the U.S., reinforcing concerns that higher borrowing costs, affordability pressures, and a weak housing market are limiting demand. Home Depot beats quarterly sales estimates on steady demand
• Negative Sentiment: Some commentary focused on the stock’s sharp decline to a two-year low and the risk that soft housing activity could keep pressure on the shares despite the earnings beat. Home Depot's Earnings Were Solid, but the Stock Hit a 2-Year Low

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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