Wall Street Zen Upgrades Home Depot (NYSE:HD) to "Hold"

Key Points

• Wall Street Zen upgraded Home Depot from “sell” to “hold”, adding to a mixed analyst backdrop for the stock.
• Overall analyst sentiment remains constructive: Home Depot has 20 Buy ratings, 12 Hold ratings, and 1 Sell rating, with a consensus target price of $405.66.
• Home Depot recently beat quarterly EPS estimates, but revenue still declined 3.8% year over year; investors are now watching the company’s May 19 earnings date for signs of improvement in housing-related demand.

Home Depot (NYSE:HD - Get Free Report) was upgraded by equities research analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a research note issued to investors on Sunday.

Other equities analysts have also issued research reports about the company. DA Davidson lifted their price target on Home Depot from $407.00 to $445.00 and gave the company a "buy" rating in a research note on Tuesday, February 24th. TD Cowen reiterated a "buy" rating on shares of Home Depot in a research note on Thursday, March 12th. Citigroup decreased their price target on Home Depot from $450.00 to $400.00 and set a "buy" rating on the stock in a research note on Tuesday. Weiss Ratings reiterated a "hold (c+)" rating on shares of Home Depot in a research note on Friday, March 27th. Finally, Robert W. Baird lifted their price target on Home Depot from $400.00 to $430.00 and gave the company an "outperform" rating in a research note on Tuesday, February 17th. Twenty investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, Home Depot has a consensus rating of "Moderate Buy" and a consensus target price of $405.66.

Home Depot Price Performance

Home Depot stock opened at $297.34 on Friday. The stock's fifty day moving average price is $331.77 and its two-hundred day moving average price is $354.39. Home Depot has a one year low of $296.88 and a one year high of $426.75. The company has a debt-to-equity ratio of 3.62, a current ratio of 1.06 and a quick ratio of 0.26. The firm has a market cap of $296.16 billion, a PE ratio of 20.90, a price-to-earnings-growth ratio of 3.43 and a beta of 1.00.

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

Insider Activity at Home Depot

In other Home Depot news, CFO Richard V. Mcphail sold 2,550 shares of the company'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 sale, 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 position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Company insiders own 0.08% of the company's stock.

Institutional Investors Weigh In On Home Depot

A number of institutional investors have recently made changes to their positions in the stock. Quantinno Capital Management LP grew its position in shares of Home Depot by 23.5% in the 1st quarter. Quantinno Capital Management LP now owns 478,109 shares of the home improvement retailer's stock valued at $157,246,000 after buying an additional 91,060 shares during the last quarter. Polar Asset Management Partners Inc. grew its position in shares of Home Depot by 207.0% in the 1st quarter. Polar Asset Management Partners Inc. now owns 30,700 shares of the home improvement retailer's stock valued at $10,097,000 after buying an additional 20,700 shares during the last quarter. Family Manage LLC lifted its stake in shares of Home Depot by 8.2% in the 1st quarter. Family Manage LLC now owns 11,724 shares of the home improvement retailer's stock valued at $3,856,000 after purchasing an additional 891 shares during the period. Gateway Wealth Partners LLC lifted its stake in shares of Home Depot by 251.2% in the 1st quarter. Gateway Wealth Partners LLC now owns 9,013 shares of the home improvement retailer's stock valued at $2,964,000 after purchasing an additional 6,447 shares during the period. Finally, Blue Chip Partners LLC lifted its stake in shares of Home Depot by 5.7% in the 1st quarter. Blue Chip Partners LLC now owns 84,040 shares of the home improvement retailer's stock valued at $27,640,000 after purchasing an additional 4,543 shares during the period. Institutional investors own 70.86% of the company's stock.

Trending Headlines about Home Depot

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

• Positive Sentiment: Telsey Advisory reiterated a Buy rating on Home Depot, suggesting at least one Wall Street firm still sees value in the shares despite recent volatility.
• Positive Sentiment: Some commentary has highlighted Home Depot as a potential beneficiary if housing turnover and mortgage-rate conditions improve, which could support future sales and earnings.
• Neutral Sentiment: Investors are watching Home Depot closely ahead of earnings on May 19, with articles focusing on whether pro demand, digital tools, and repair projects can offset a weaker housing backdrop.
• Neutral Sentiment: Jim Cramer said Home Depot can perform well in a lower-rate environment, but also noted the stock needs stronger housing turnover to really accelerate.
• Negative Sentiment: Sanford C. Bernstein cut its price target on Home Depot to $365 from $390 and kept a Market Perform rating, reflecting a more cautious view on near-term upside.
• Negative Sentiment: A new class-action lawsuit reportedly pressured the stock, adding legal uncertainty at an already sensitive time for investors.
• Negative Sentiment: Recent pre-earnings pullback and broader worries about housing turnover have also weighed on sentiment, helping explain why Home Depot stock has been moving lower.

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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