Home Depot (NYSE:HD) Upgraded to “Strong-Buy” at Melius Research

Melius Research upgraded shares of Home Depot (NYSE:HD) to a strong-buy rating in a research report sent to investors on Tuesday morning,Zacks reports.

A number of other equities research analysts also recently weighed in on HD. Royal Bank Of Canada cut their target price on Home Depot from $343.00 to $342.00 and set a “sector perform” rating for the company in a research report on Wednesday, August 19th. UBS Group reaffirmed a “buy” rating on shares of Home Depot in a research note on Thursday, September 17th. Stifel Nicolaus lifted their target price on Home Depot from $320.00 to $340.00 and gave the stock a “hold” rating in a report on Monday, August 17th. KeyCorp reissued a “sector weight” rating on shares of Home Depot in a report on Wednesday, August 19th. Finally, Guggenheim reaffirmed a “buy” rating and issued a $425.00 price objective on shares of Home Depot in a research note on Wednesday, August 19th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, thirteen have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Home Depot presently has an average rating of “Moderate Buy” and a consensus target price of $375.93.

Home Depot Stock Performance

Shares of HD stock opened at $295.64 on Tuesday. The company has a quick ratio of 0.31, a current ratio of 1.08 and a debt-to-equity ratio of 2.64. Home Depot has a 52 week low of $277.15 and a 52 week high of $397.63. The business has a 50 day moving average of $318.34 and a two-hundred day moving average of $325.42. The company has a market cap of $294.96 billion, a P/E ratio of 20.69, a PEG ratio of 2.03 and a beta of 1.00.

Home Depot (NYSE:HD) last issued its quarterly earnings data on Tuesday, August 18th. The home improvement retailer reported $4.92 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.73 by $0.19. Home Depot had a return on equity of 106.42% and a net margin of 8.41%.The business had revenue of $47.86 billion during the quarter, compared to the consensus estimate of $47.24 billion. During the same period in the previous year, the firm posted $4.68 earnings per share. The business’s revenue was up 5.7% on a year-over-year basis. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. As a group, analysts anticipate that Home Depot will post 15.01 EPS for the current year.

Home Depot Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, September 17th. Stockholders of record on Thursday, September 3rd were given a $2.33 dividend. This represents a $9.32 annualized dividend and a dividend yield of 3.2%. The ex-dividend date of this dividend was Thursday, September 3rd. Home Depot’s dividend payout ratio (DPR) is 65.22%.

Insider Activity

In related news, EVP Michael F. Rowe sold 710 shares of the firm’s stock in a transaction that occurred on Wednesday, August 26th. The shares were sold at an average price of $336.76, for a total value of $239,099.60. Following the completion of the transaction, the executive vice president owned 6,838 shares of the company’s stock, valued at approximately $2,302,764.88. This trade represents a 9.41% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CAO Kimberly R. Scardino sold 675 shares of Home Depot stock in a transaction that occurred on Thursday, September 10th. The stock was sold at an average price of $305.95, for a total transaction of $206,516.25. Following the transaction, the chief accounting officer owned 8,189 shares in the company, valued at approximately $2,505,424.55. The trade was a 7.62% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 9,829 shares of company stock worth $3,339,314 over the last three months. 0.08% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of HD. BlackRock Inc. purchased a new stake in Home Depot in the 2nd quarter worth approximately $28,771,247,000. State Street Corp lifted its holdings in shares of Home Depot by 1.1% during the 2nd quarter. State Street Corp now owns 47,175,026 shares of the home improvement retailer’s stock valued at $16,637,688,000 after buying an additional 499,168 shares during the last quarter. Bank of America Corp DE bought a new stake in shares of Home Depot in the 2nd quarter valued at approximately $5,780,468,000. Bank of New York Mellon Corp acquired a new position in Home Depot in the second quarter worth approximately $2,777,396,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in Home Depot by 1.9% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 8,040,796 shares of the home improvement retailer’s stock valued at $2,766,838,000 after acquiring an additional 152,902 shares in the last quarter. Hedge funds and other 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: Traders purchased 33,592 HD call options, roughly 54% above the average daily volume. The activity may indicate increased bullish speculation or hedging demand, although options flow does not guarantee future gains.
• Positive Sentiment: Melius Research initiated coverage with a Buy rating and a $397 price target, implying substantial upside from recent trading levels. The firm’s constructive view of home-improvement retailers helped support the stock. Home Depot Stock Is Down 17% in 2026. Here’s Why Melius Still Sees $397
• Positive Sentiment: Analysts have reportedly raised earnings forecasts ahead of Home Depot’s results, reinforcing expectations that improving business trends could help the retailer recover from its 2026 decline. Should Analyst Upgrades to Earnings Forecasts Require Action From Home Depot Investors?
• Positive Sentiment: Home Depot’s roughly 5.4% free-cash-flow yield is above the S&P 500 median, making the shares appear attractively valued if housing and consumer demand stabilize. Why Is Everyone Ignoring Home Depot Stock’s High Cash Yield?
• Neutral Sentiment: The company announced its 2026 Innovation Award winners, highlighting products designed to simplify DIY and professional renovation projects. The announcement supports Home Depot’s merchandising strategy but is unlikely to materially change near-term earnings. The Home Depot Announces 2026 Innovation Award Winners
• Negative Sentiment: Technical analysts warned that the area near $288 could act as resistance; failure to reclaim it convincingly could renew the downtrend. Home Depot is also trading below its key moving averages after a significant year-to-date decline. Stock of the Day: Will Home Depot Continue to Trend Lower?
• Negative Sentiment: Weakness across consumer discretionary and staples stocks, combined with investor concerns that high interest rates are limiting housing activity, continues to weigh on the broader backdrop for HD. Jim Cramer Sees Little Relief for Home Depot Until Rates Fall

About Home Depot

The Home Depot, Inc (NYSE: HD) is a home improvement retailer serving do-it-yourself customers, professional contractors, and other trade professionals. The company sells building materials, appliances, décor, hardware, plumbing and electrical supplies, tools, outdoor products, and lawn and garden merchandise through its retail stores and digital platforms.

Home Depot also provides services such as installation, equipment rental, delivery, and project support. Its professional customer offerings include job-lot quantities, delivery solutions, credit services, and tools designed to help contractors manage construction and renovation projects.