Home Depot (NYSE:HD) Shares Up 2.7% – Still a Buy?

The Home Depot, Inc. (NYSE:HD)’s share price shot up 2.7% during trading on Tuesday . The stock traded as high as $306.31 and last traded at $305.3410. 5,437,021 shares traded hands during mid-day trading, an increase of 25% from the average session volume of 4,359,617 shares. The stock had previously closed at $297.20.

Wall Street Analysts Forecast Growth

HD has been the subject of a number of recent research reports. Truist Financial raised their price objective on shares of Home Depot from $369.00 to $373.00 and gave the stock a “buy” rating in a research note on Wednesday, August 19th. Mizuho upped their price objective on Home Depot from $385.00 to $390.00 and gave the company an “outperform” rating in a research report on Wednesday, August 19th. Sanford C. Bernstein reduced their target price on shares of Home Depot from $354.00 to $344.00 and set a “market perform” rating on the stock in a report on Wednesday, September 9th. Wall Street Zen raised shares of Home Depot from a “sell” rating to a “hold” rating in a research note on Tuesday, June 2nd. Finally, Gordon Haskett boosted their price objective on shares of Home Depot from $320.00 to $330.00 in a research note on Friday, June 12th. Eighteen investment analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $375.18.

Home Depot Trading Down 0.3%

The company has a debt-to-equity ratio of 2.64, a quick ratio of 0.31 and a current ratio of 1.08. The firm has a market cap of $295.11 billion, a price-to-earnings ratio of 20.74, a price-to-earnings-growth ratio of 3.36 and a beta of 0.95. The business’s 50 day moving average price is $328.96 and its 200-day moving average price is $329.64.

Home Depot (NYSE:HD) last posted its quarterly earnings results on Tuesday, August 18th. The home improvement retailer reported $4.92 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.73 by $0.19. The company had revenue of $47.86 billion for the quarter, compared to the consensus estimate of $47.24 billion. Home Depot had a net margin of 8.41% and a return on equity of 106.42%. The company’s revenue for the quarter was up 5.7% on a year-over-year basis. During the same period last year, the firm posted $4.68 EPS. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. Equities analysts expect that The Home Depot, Inc. will post 15 EPS for the current year.

Home Depot Dividend Announcement

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

Insider Activity at Home Depot

In related news, CFO Richard V. Mcphail sold 5,989 shares of the stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $348.40, for a total transaction of $2,086,567.60. Following the completion of the sale, the chief financial officer directly owned 48,104 shares of the company’s stock, valued at $16,759,433.60. This represents a 11.07% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Michael F. Rowe sold 710 shares of the company’s stock in a transaction 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 directly owned 6,838 shares in the company, valued at $2,302,764.88. This represents a 9.41% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 9,829 shares of company stock valued at $3,339,314. 0.08% of the stock is currently owned by insiders.

Institutional Trading of Home Depot

Several institutional investors and hedge funds have recently bought and sold shares of HD. BlackRock Inc. acquired a new stake in shares of Home Depot in the second quarter worth $28,771,247,000. State Street Corp raised its position in Home Depot by 1.1% during the second 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 period. 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 worth $8,151,344,000 after acquiring an additional 343,153 shares in the last quarter. Bank of America Corp DE purchased a new stake in Home Depot in the 2nd quarter worth about $5,780,468,000. Finally, Norges Bank acquired a new stake in Home Depot during the 4th quarter worth about $4,850,329,000. Institutional investors and hedge funds own 70.86% of the company’s stock.

About Home Depot

The Home Depot, Inc is a home improvement retailer that sells building materials, appliances, decor, hardware, tools, paint, lawn and garden products, and related merchandise. The company serves do-it-yourself customers, professional contractors, homebuilders, and other commercial customers through its retail stores and digital platforms.

Home Depot also provides services such as equipment and tool rental, delivery, installation, and project support. Its professional-focused offerings include job-lot quantities, specialized products, credit services, and account support designed for contractors and other trade customers.

Founded in 1978 by Bernie Marcus, Arthur Blank, Ken Langone, and Pat Farrah, the company is headquartered in Atlanta, Georgia.