The Home Depot, Inc. (NYSE:HD) Given Consensus Recommendation of "Moderate Buy" by Brokerages

Key Points

• Home Depot has a consensus analyst rating of “Moderate Buy” from 33 research firms, with an average 1-year price target of about $371.39.
• The company’s latest quarterly results beat expectations, with EPS of $3.43 and revenue of $41.77 billion, while revenue rose 4.8% year over year.
• Home Depot also announced a quarterly dividend of $2.33 per share, equivalent to $9.32 annually and a 2.9% yield.

The Home Depot, Inc. (NYSE:HD - Get Free Report) has been given an average recommendation of "Moderate Buy" by the thirty-three research firms that are presently covering the firm, Marketbeat reports. One investment analyst has rated the stock with a sell rating, twelve have given a hold rating and twenty have given a buy rating to the company. The average 1 year price target among brokers that have covered the stock in the last year is $371.3929.

A number of research firms have recently commented on HD. Piper Sandler cut their price objective on Home Depot from $422.00 to $421.00 and set an "overweight" rating on the stock in a report on Wednesday, May 20th. Truist Financial cut their price objective on Home Depot from $394.00 to $369.00 and set a "buy" rating on the stock in a report on Tuesday, May 19th. Daiwa Securities Group raised their price objective on Home Depot from $360.00 to $390.00 and gave the stock a "neutral" rating in a report on Thursday, February 26th. KeyCorp restated a "sector weight" rating on shares of Home Depot in a report on Wednesday, February 25th. Finally, Stifel Nicolaus cut their price objective on Home Depot from $375.00 to $320.00 and set a "hold" rating on the stock in a report on Monday, May 18th.

Insider Activity at Home Depot

In other news, CFO Richard V. Mcphail sold 2,550 shares of the firm's stock in a transaction dated Wednesday, March 4th. The stock was sold at an average price of $368.89, for a total value of $940,669.50. Following the transaction, the chief financial officer directly owned 44,566 shares in the company, valued at $16,439,951.74. This trade represents a 5.41% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.08% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Home Depot

Several hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. raised its holdings in shares of Home Depot by 1.3% during the 4th quarter. Vanguard Group Inc. now owns 99,635,779 shares of the home improvement retailer's stock valued at $34,284,672,000 after buying an additional 1,325,748 shares during the period. State Street Corp raised its holdings in shares of Home Depot by 1.8% during the 4th quarter. State Street Corp now owns 46,925,342 shares of the home improvement retailer's stock valued at $16,147,010,000 after buying an additional 825,164 shares during the period. Geode Capital Management LLC raised its holdings in shares of Home Depot by 1.5% during the 4th quarter. Geode Capital Management LLC now owns 23,756,142 shares of the home improvement retailer's stock valued at $8,151,344,000 after buying an additional 343,153 shares during the period. Bank of America Corp DE increased its holdings in Home Depot by 1.6% during the 1st quarter. Bank of America Corp DE now owns 16,314,357 shares of the home improvement retailer's stock worth $5,365,629,000 after purchasing an additional 250,825 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. increased its holdings in Home Depot by 7.8% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 15,471,132 shares of the home improvement retailer's stock worth $5,323,620,000 after purchasing an additional 1,113,114 shares during the last quarter. 70.86% of the stock is currently owned by hedge funds and other institutional investors.

Home Depot Stock Up 1.1%

Shares of NYSE:HD opened at $321.34 on Friday. The stock's 50-day moving average price is $324.97 and its two-hundred day moving average price is $349.99. The company has a current ratio of 1.04, a quick ratio of 0.28 and a debt-to-equity ratio of 3.23. Home Depot has a 12-month low of $289.10 and a 12-month high of $426.75. The firm has a market cap of $320.07 billion, a price-to-earnings ratio of 22.82, a PEG ratio of 3.67 and a beta of 1.00.

Home Depot (NYSE:HD - Get Free Report) last issued its quarterly earnings results on Tuesday, May 19th. The home improvement retailer reported $3.43 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.41 by $0.02. The firm had revenue of $41.77 billion for the quarter, compared to analyst estimates of $41.59 billion. Home Depot had a return on equity of 117.24% and a net margin of 8.41%.The firm's quarterly revenue was up 4.8% on a year-over-year basis. During the same period last year, the company earned $3.56 EPS. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. On average, research analysts forecast that Home Depot will post 15.02 EPS for the current year.

Home Depot Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, June 18th. Stockholders of record on Thursday, June 4th will be issued a $2.33 dividend. This represents a $9.32 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date is Thursday, June 4th. Home Depot's dividend payout ratio (DPR) is 66.19%.

About Home Depot

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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