Home Depot’s (HD) Buy Rating Reiterated at DA Davidson

DA Davidson reiterated their buy rating on shares of Home Depot (NYSE:HD) in a research note issued to investors on Monday,Benzinga reports. They currently have a $377.00 price target on the home improvement retailer’s stock.

Several other research firms also recently commented on HD. Mizuho dropped their target price on Home Depot from $415.00 to $385.00 and set an “outperform” rating for the company in a research report on Wednesday, May 20th. Argus reduced their price target on Home Depot from $425.00 to $400.00 and set a “buy” rating on the stock in a report on Thursday, May 21st. HSBC lowered their price objective on Home Depot from $392.00 to $310.00 and set a “hold” rating for the company in a research note on Wednesday, May 20th. Citigroup dropped their price objective on shares of Home Depot from $450.00 to $400.00 and set a “buy” rating for the company in a report on Tuesday, May 12th. Finally, Wells Fargo & Company cut their target price on shares of Home Depot from $375.00 to $360.00 and set an “overweight” rating on the stock in a research report on Wednesday, May 20th. Eighteen analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $371.71.

Home Depot Trading Down 1.8%

Shares of HD stock opened at $338.39 on Monday. The stock has a market cap of $337.41 billion, a P/E ratio of 24.03, a price-to-earnings-growth ratio of 3.98 and a beta of 0.95. Home Depot has a 1 year low of $289.10 and a 1 year high of $426.75. The company has a current ratio of 1.04, a quick ratio of 0.28 and a debt-to-equity ratio of 3.23. The stock has a 50 day simple moving average of $331.63 and a 200 day simple moving average of $344.45.

Home Depot (NYSE:HD) last announced its quarterly earnings data 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 the consensus estimate of $41.59 billion. Home Depot had a net margin of 8.41% and a return on equity of 117.24%. The business’s revenue for the quarter was up 4.8% on a year-over-year basis. During the same period in the prior year, the company posted $3.56 earnings per share. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. On average, research analysts predict that Home Depot will post 15.01 earnings per share for the current fiscal year.

Home Depot Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, June 18th. Stockholders of record on Thursday, June 4th were given a dividend of $2.33 per share. The ex-dividend date of this dividend was Thursday, June 4th. This represents a $9.32 annualized dividend and a dividend yield of 2.8%. Home Depot’s dividend payout ratio (DPR) is 66.19%.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of HD. Parvin Asset Management LLC boosted its position in shares of Home Depot by 110.0% during the 3rd quarter. Parvin Asset Management LLC now owns 63 shares of the home improvement retailer’s stock worth $26,000 after purchasing an additional 33 shares in the last quarter. Advocate Investing Services LLC acquired a new stake in shares of Home Depot in the 4th quarter valued at about $25,000. Key Capital Management INC bought a new stake in Home Depot in the 4th quarter valued at about $28,000. Cache Advisors LLC bought a new stake in Home Depot in the 1st quarter valued at about $27,000. Finally, Imprint Wealth LLC bought a new stake in Home Depot in the 3rd quarter valued at about $34,000. Institutional investors and hedge funds own 70.86% of the company’s stock.

Home Depot News Roundup

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

• Positive Sentiment: Analyst support: DA Davidson reiterated its Buy rating, reinforcing the view that Home Depot’s long-term housing and professional-customer opportunity remains attractive. DA Davidson Reiterates Buy Rating for Home Depot
• Positive Sentiment: Dividend appeal: An article highlighted Home Depot’s ability to generate substantial annual dividend income, supporting the stock’s defensive appeal for income-oriented investors despite limited recent capital gains. Home Depot Dividend Analysis
• Positive Sentiment: Community investment: Home Depot announced a renovation initiative involving Boys & Girls Clubs, adding to its brand and community-engagement efforts, although the direct financial impact is likely limited. Home Depot Boys & Girls Clubs Renovation Plan
• Neutral Sentiment: Mixed trading signals: Options activity showed increased call positioning ahead of mid-August earnings, while investors rotated toward defensive stocks amid technology-sector weakness. However, recent insider activity consisted of sales rather than purchases, creating a mixed signal. Home Depot Options and Defensive Rotation
• Negative Sentiment: Housing-related concerns: Commentary pointed to Home Depot’s high leverage and relatively thin equity cushion as risks if housing activity, remodeling demand or consumer spending weaken. This adds pressure to a stock already sensitive to mortgage rates and the housing cycle. Home Depot Housing and Leverage Risks
• Negative Sentiment: Market pressure: Home Depot underperformed as a broader semiconductor-led sell-off and risk reduction weighed on equities, encouraging investors to reassess cyclical consumer and housing-sensitive companies. Home Depot Market Performance

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.