Home Depot (NYSE:HD) Hits New 12-Month Low Following Analyst Downgrade

The Home Depot, Inc. (NYSE:HD) shares hit a new 52-week low during mid-day trading on Tuesday after Oppenheimer lowered their price target on the stock from $405.00 to $310.00. Oppenheimer currently has a market perform rating on the stock. Home Depot traded as low as $296.88 and last traded at $293.7240, with a volume of 164915 shares. The stock had previously closed at $299.81.

Several other equities research analysts also recently weighed in on the stock. Morgan Stanley increased their target price on shares of Home Depot from $412.00 to $420.00 and gave the stock an “overweight” rating in a research note on Tuesday, April 28th. UBS Group reissued an “outperform” rating on shares of Home Depot in a report on Tuesday, March 24th. Piper Sandler lowered their price objective on shares of Home Depot from $422.00 to $421.00 and set an “overweight” rating on the stock in a research report on Friday. Truist Financial cut their price objective on shares of Home Depot from $424.00 to $394.00 and set a “buy” rating for the company in a research report on Wednesday, May 13th. Finally, Telsey Advisory Group reaffirmed an “outperform” rating and issued a $435.00 target price on shares of Home Depot in a report on Wednesday, March 25th. Twenty equities research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Home Depot currently has a consensus rating of “Moderate Buy” and an average target price of $401.34.

Insider Transactions at Home Depot

In other Home Depot news, CFO Richard V. Mcphail sold 2,550 shares of the business’s stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $368.89, for a total transaction of $940,669.50. Following the sale, the chief financial officer directly 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Corporate insiders own 0.08% of the company’s stock.

Trending Headlines about Home Depot

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

• Positive Sentiment: Home Depot posted adjusted EPS of $3.43 versus estimates around $3.42-$3.41, while revenue of $41.77 billion also topped forecasts, signaling that demand held up better than feared. Reuters article
• Positive Sentiment: The company reaffirmed its full-year fiscal 2026 guidance, which reassured investors who were worried that weak housing activity and higher borrowing costs might force a cut. MarketWatch article
• Positive Sentiment: Management said core customers remained engaged, with strength in professional buyers and smaller DIY projects helping offset a tougher housing backdrop. CNBC article
• Neutral Sentiment: Comparable sales rose modestly, but profit fell from a year earlier, underscoring that the business is still navigating a slow home-improvement market. Yahoo Finance article
• Negative Sentiment: Earlier analyst commentary had highlighted sluggish demand, weak housing affordability, and concerns that Home Depot could trim guidance, which kept expectations muted heading into the report. Yahoo Finance article

Institutional Investors Weigh In On Home Depot

Several institutional investors and hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. grew its position in shares of Home Depot by 1.3% in the fourth quarter. Vanguard Group Inc. now owns 99,635,779 shares of the home improvement retailer’s stock valued at $34,284,672,000 after purchasing an additional 1,325,748 shares during the last quarter. State Street Corp lifted its stake in Home Depot by 1.8% in 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 in the last quarter. Geode Capital Management LLC lifted its stake in Home Depot by 1.5% in 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 in the last quarter. Bank of America Corp DE grew its holdings in Home Depot by 5.6% during the 4th quarter. Bank of America Corp DE now owns 16,063,532 shares of the home improvement retailer’s stock valued at $5,527,461,000 after buying an additional 851,029 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. increased its position in Home Depot by 7.8% during the fourth 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 buying an additional 1,113,114 shares in the last quarter. 70.86% of the stock is currently owned by hedge funds and other institutional investors.

Home Depot Stock Performance

The company has a market capitalization of $293.84 billion, a price-to-earnings ratio of 20.68, a PEG ratio of 3.43 and a beta of 1.00. The stock has a fifty day moving average price of $330.53 and a two-hundred day moving average price of $353.57. The company has a quick ratio of 0.26, a current ratio of 1.06 and a debt-to-equity ratio of 3.62.

Home Depot (NYSE:HD) last issued its quarterly earnings data on Tuesday, May 19th. The home improvement retailer reported $3.43 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.42 by $0.01. The business had revenue of $41.77 billion for the quarter, compared to the consensus estimate of $41.59 billion. Home Depot had a return on equity of 134.32% and a net margin of 8.60%.The business’s revenue was up 4.8% on a year-over-year basis. During the same period in the prior year, the business earned $3.56 earnings per share. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. As a group, analysts forecast that The Home Depot, Inc. will post 15.03 EPS for the current fiscal year.

Home Depot Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, March 26th. Shareholders of record on Thursday, March 12th were paid a dividend of $2.33 per share. The ex-dividend date of this dividend was Thursday, March 12th. This represents a $9.32 annualized dividend and a dividend yield of 3.2%. This is an increase from Home Depot’s previous quarterly dividend of $2.30. Home Depot’s dividend payout ratio is 65.50%.

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.