Home Depot (NYSE:HD) Reaches New 1-Year Low – What’s Next?

The Home Depot, Inc. (NYSE:HD)’s stock price reached a new 52-week low on Tuesday. The company traded as low as $288.80 and last traded at $288.62, with a volume of 1190185 shares changing hands. The stock had previously closed at $289.89.

Wall Street Analysts Forecast Growth

HD has been the subject of a number of analyst reports. Jefferies Financial Group restated a “buy” rating and set a $398.00 price objective on shares of Home Depot in a research report on Tuesday, August 18th. UBS Group reiterated a “buy” rating on shares of Home Depot in a research note on Thursday, September 17th. KeyCorp reaffirmed a “sector weight” rating on shares of Home Depot in a report on Wednesday, August 19th. TD Cowen reissued a “buy” rating on shares of Home Depot in a research note on Monday, August 10th. Finally, Truist Financial raised their price target on Home Depot from $369.00 to $373.00 and gave the company a “buy” rating in a report on Wednesday, August 19th. Eighteen investment analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $375.18.

Home Depot Stock Down 1.1%

The company has a debt-to-equity ratio of 2.64, a current ratio of 1.08 and a quick ratio of 0.31. The firm’s 50-day simple moving average is $324.25 and its two-hundred day simple moving average is $327.45. The company has a market capitalization of $284.30 billion, a price-to-earnings ratio of 19.94, a price-to-earnings-growth ratio of 3.17 and a beta of 0.95.

Home Depot (NYSE:HD) last announced its quarterly earnings results on Tuesday, August 18th. The home improvement retailer reported $4.92 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 for the quarter, compared to analyst estimates of $47.24 billion. During the same quarter in the previous year, the company earned $4.68 EPS. The company’s quarterly 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. Sell-side analysts predict that The Home Depot, Inc. will post 15 EPS for the current fiscal year.

Home Depot Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, September 17th. Stockholders of record on Thursday, September 3rd were paid a dividend of $2.33 per share. This represents a $9.32 annualized dividend and a dividend yield of 3.3%. The ex-dividend date of this dividend was Thursday, September 3rd. Home Depot’s payout ratio is 65.22%.

Insider Buying and Selling at Home Depot

In related news, CAO Kimberly Scardino sold 675 shares of the stock in a transaction dated Thursday, September 10th. The shares were sold at an average price of $305.95, for a total value of $206,516.25. Following the sale, the chief accounting officer directly owned 8,189 shares of the company’s stock, valued at approximately $2,505,424.55. This represents a 7.62% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Teresa Roseborough sold 2,455 shares of the firm’s stock in a transaction dated Friday, August 28th. The shares were sold at an average price of $328.77, for a total transaction of $807,130.35. Following the transaction, the executive vice president owned 14,061 shares of the company’s stock, valued at $4,622,834.97. This trade represents a 14.86% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 9,829 shares of company stock valued at $3,339,314 over the last 90 days. 0.08% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the business. BlackRock Inc. purchased a new stake in shares of Home Depot in the second quarter valued at $28,771,247,000. Bank of America Corp DE purchased a new stake in Home Depot during the 2nd quarter worth about $5,780,468,000. Bank of New York Mellon Corp purchased a new stake in Home Depot during the 2nd quarter worth about $2,777,396,000. Corient Private Wealth LP purchased a new position in Home Depot in the 2nd quarter valued at about $390,913,000. Finally, Legal & General Group Plc purchased a new position in Home Depot in the 2nd quarter valued at about $1,953,883,000. 70.86% of the stock is owned by hedge funds and other institutional investors.

Home Depot Company Profile

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.