Home Depot (NYSE:HD) Stock Price Up 4.2% – Should You Buy?

The Home Depot, Inc. (NYSE:HD)’s stock price was up 4.2% during mid-day trading on Friday . The company traded as high as $375.49 and last traded at $374.6670. Approximately 6,977,415 shares were traded during mid-day trading, an increase of 41% from the average daily volume of 4,960,886 shares. The stock had previously closed at $359.56.

Home Depot News Roundup

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

• Positive Sentiment: Investors expect a White House housing initiative to boost homebuilding and repair activity, which should lift demand for Home Depot’s products and services. Trump Housing Plan Sends Home Depot Stock Higher
• Positive Sentiment: Large call buying occurred today (46,130 calls, ~37% above typical volume), indicating speculative or hedged bullish positioning that can amplify upside near term.
• Positive Sentiment: Prominent TV commentary favors HD as a housing/play (Jim Cramer preferring Home Depot), which can drive retail flows and sentiment. Jim Cramer Prefers Home Depot Over Fortune Brands as a Housing Play
• Positive Sentiment: A vendor-related issue (Kurt Weiss Greenhouses) drew attention but the company’s response was viewed positively by some outlets, removing a near-term reputational overhang. Home Depot Stock Surges With Kurt Weiss Greenhouses Response
• Neutral Sentiment: Broader market strength (Dow gains) has supported HD alongside other large-cap consumer names, a technical tailwind rather than company-specific news. Nike, Home Depot share gains contribute to Dow’s nearly 225-point jump
• Neutral Sentiment: Investor interest metrics and analyst/valuation write-ups are getting attention, but they largely summarize mixed fundamentals (recent EPS miss vs. solid revenue) rather than new catalysts. Assessing Home Depot (HD) Valuation After Recent Mixed Share Price Performance Investors Heavily Search The Home Depot, Inc. (HD)
• Negative Sentiment: Earlier unusual put buying (57,026 puts) indicates some market participants taking or hedging for downside risk—this raises near-term volatility risk.
• Negative Sentiment: A Pomerantz law firm investigation notice was filed, signaling potential shareholder litigation risk that can weigh on sentiment until resolved. Pomerantz Law Firm Investigates Claims On Behalf of Investors of The Home Depot, Inc.

Analyst Upgrades and Downgrades

HD has been the topic of a number of analyst reports. DZ Bank reaffirmed a “sell” rating on shares of Home Depot in a research report on Tuesday, November 18th. Wall Street Zen lowered shares of Home Depot from a “hold” rating to a “sell” rating in a research note on Friday, November 28th. The Goldman Sachs Group reiterated a “buy” rating and issued a $413.00 price target on shares of Home Depot in a research note on Wednesday, December 10th. Morgan Stanley reiterated an “outperform” rating on shares of Home Depot in a report on Wednesday, December 10th. Finally, DA Davidson reduced their price objective on shares of Home Depot from $430.00 to $407.00 and set a “buy” rating on the stock in a report on Wednesday, December 10th. Twenty-one equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Home Depot has a consensus rating of “Moderate Buy” and an average price target of $402.10.

Home Depot Price Performance

The stock has a market capitalization of $372.98 billion, a price-to-earnings ratio of 25.54, a price-to-earnings-growth ratio of 13.00 and a beta of 1.08. The company has a current ratio of 1.05, a quick ratio of 0.29 and a debt-to-equity ratio of 3.82. The company’s 50 day moving average is $354.64 and its 200 day moving average is $377.51.

Home Depot (NYSE:HD) last issued its quarterly earnings data on Tuesday, November 18th. The home improvement retailer reported $3.74 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.83 by ($0.09). The firm had revenue of $41.35 billion for the quarter, compared to analysts’ expectations of $41.06 billion. Home Depot had a return on equity of 160.74% and a net margin of 8.77%.The business’s revenue for the quarter was up 2.8% compared to the same quarter last year. During the same period in the previous year, the business posted $3.78 EPS. Home Depot has set its FY 2025 guidance at 14.478-14.478 EPS. Research analysts anticipate that The Home Depot, Inc. will post 15.13 EPS for the current fiscal year.

Home Depot Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, December 18th. Investors of record on Thursday, December 4th were paid a dividend of $2.30 per share. The ex-dividend date was Thursday, December 4th. This represents a $9.20 dividend on an annualized basis and a yield of 2.5%. Home Depot’s dividend payout ratio is currently 62.71%.

Insider Transactions at Home Depot

In other news, EVP Ann Marie Campbell sold 145 shares of Home Depot stock in a transaction dated Thursday, December 11th. The shares were sold at an average price of $358.26, for a total value of $51,947.70. Following the sale, the executive vice president owned 12,320 shares of the company’s stock, valued at $4,413,763.20. The trade was a 1.16% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Teresa Wynn Roseborough sold 2,872 shares of Home Depot stock in a transaction that occurred on Friday, December 26th. The shares were sold at an average price of $348.52, for a total value of $1,000,949.44. Following the completion of the sale, the executive vice president directly owned 13,196 shares in the company, valued at $4,599,069.92. This represents a 17.87% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 4,963 shares of company stock worth $1,748,845. Company insiders own 0.10% of the company’s stock.

Institutional Trading of Home Depot

Hedge funds have recently modified their holdings of the business. Mainstay Capital Management LLC ADV acquired a new stake in Home Depot during the second quarter worth approximately $263,000. WealthPlan Investment Management LLC purchased a new stake in shares of Home Depot in the second quarter valued at $1,149,000. Tower View Wealth Management LLC increased its stake in Home Depot by 4.3% in the second quarter. Tower View Wealth Management LLC now owns 16,196 shares of the home improvement retailer’s stock valued at $5,938,000 after purchasing an additional 671 shares during the last quarter. Shell Asset Management Co. increased its stake in Home Depot by 45.2% in the second quarter. Shell Asset Management Co. now owns 48,175 shares of the home improvement retailer’s stock valued at $17,663,000 after purchasing an additional 15,002 shares during the last quarter. Finally, Boston Trust Walden Corp lifted its position in Home Depot by 0.3% during the second quarter. Boston Trust Walden Corp now owns 42,376 shares of the home improvement retailer’s stock worth $15,537,000 after buying an additional 127 shares during the period. 70.86% of the stock is owned by institutional investors and hedge funds.

Home Depot Company Profile

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.