Home Depot (NYSE:HD) Trading Down 3.1% – Should You Sell?

The Home Depot, Inc. (NYSE:HD)’s stock price traded down 3.1% on Wednesday . The stock traded as low as $330.14 and last traded at $330.7510. 3,522,268 shares traded hands during mid-day trading, a decline of 16% from the average session volume of 4,187,812 shares. The stock had previously closed at $341.43.

Home Depot News Roundup

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

• Positive Sentiment: Expanded Pro digital tools and AI: Home Depot is rolling out new project‑management and AI features for its Pro customers to streamline jobs, reduce downtime and deepen professional relationships—this can boost sales, margins and recurring Pro business over time. The Home Depot Expands Pro Digital Experience
• Positive Sentiment: US store expansion: HD plans to open 12 U.S. stores in 2026, adding ~1.6M+ sq ft—a sign of continued capital deployment into growth markets and footprint-driven revenue potential. Home Depot to open 12 US stores in 2026 expansion
• Positive Sentiment: Seasonal demand program: The company launched its Spring Starts event (Mar 19–Apr 1), a seasonal merchandising push that typically drives higher in‑store traffic and incremental product sales in outdoor, gardening and seasonal categories. Spring Starts Event
• Positive Sentiment: Operational improvements for Pros: Home Depot launched a real‑time large‑item delivery tracker to reduce downtime for contractors—an efficiency move that should improve Pro retention and lower service friction. Real‑Time Pro Delivery Tracker
• Neutral Sentiment: Analysts are mixed: Coverage notes conflicting views on HD alongside other consumer cyclical names; no clear consensus shift in ratings or price targets was reported in the piece. Analysts Conflicted
• Neutral Sentiment: Battery recycling market coverage: Commentary highlights a growing battery recycling market tied to Home Depot’s battery sales—but the article frames it as a long‑term thematic rather than an immediate earnings driver. Battery Recycling Coverage
• Neutral Sentiment: Retail investor commentary: Home Depot appears on lists of top retail stock picks, which can support longer‑term demand but doesn’t create an immediate catalyst. Top Retail Stocks to Buy
• Negative Sentiment: Unusually heavy put buying: Traders bought ~45,863 put contracts on HD today (≈+48% vs. average), signaling elevated bearish bets or hedging activity that likely contributed to intraday selling pressure and amplified volatility.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on HD shares. Morgan Stanley lifted their price target on Home Depot from $412.00 to $420.00 and gave the company an “overweight” rating in a report on Wednesday, February 25th. Wolfe Research increased their price objective on Home Depot from $413.00 to $414.00 and gave the stock an “outperform” rating in a report on Wednesday, February 25th. BNP Paribas Exane lifted their target price on Home Depot from $355.00 to $391.00 in a research note on Wednesday, February 25th. The Goldman Sachs Group reduced their price target on Home Depot from $413.00 to $409.00 in a research report on Wednesday, February 25th. Finally, HSBC decreased their price target on Home Depot from $445.00 to $400.00 and set a “hold” rating for the company in a research note on Wednesday, November 19th. Twenty analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $416.00.

Home Depot Stock Performance

The stock has a market cap of $329.27 billion, a P/E ratio of 23.24, a PEG ratio of 12.32 and a beta of 1.09. The company has a debt-to-equity ratio of 3.62, a current ratio of 1.06 and a quick ratio of 0.26. The company has a fifty day moving average of $373.62 and a 200 day moving average of $375.45.

Home Depot (NYSE:HD) last posted its quarterly earnings data on Tuesday, February 24th. The home improvement retailer reported $2.72 EPS for the quarter, topping analysts’ consensus estimates of $2.52 by $0.20. Home Depot had a return on equity of 134.32% and a net margin of 8.60%.The company had revenue of $38.20 billion for the quarter, compared to the consensus estimate of $38.01 billion. During the same quarter in the previous year, the business earned $3.13 EPS. The company’s quarterly revenue was down 3.8% compared to the same quarter last year. Home Depot has set its FY 2026 guidance at 14.230-14.799 EPS. On average, equities analysts predict that The Home Depot, Inc. will post 15.13 earnings per share for the current fiscal year.

Home Depot Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, March 26th. Shareholders of record on Thursday, March 12th will be issued a $2.33 dividend. This represents a $9.32 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date of this dividend is Thursday, March 12th. This is a positive change from Home Depot’s previous quarterly dividend of $2.30. Home Depot’s dividend payout ratio is currently 65.50%.

Insider Activity

In related news, CFO Richard V. Mcphail sold 2,550 shares of the business’s stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $368.89, for a total value of $940,669.50. Following the sale, the chief financial officer directly owned 44,566 shares in the company, valued at $16,439,951.74. The trade was a 5.41% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Teresa Wynn Roseborough sold 2,872 shares of the firm’s stock in a transaction that occurred on Friday, December 26th. The stock was sold at an average price of $348.52, for a total transaction of $1,000,949.44. Following the sale, the executive vice president owned 13,196 shares of the company’s stock, valued at $4,599,069.92. The trade was a 17.87% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 0.10% of the company’s stock.

Institutional Investors Weigh In On Home Depot

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Emprise Bank lifted its holdings in shares of Home Depot by 0.8% during the third quarter. Emprise Bank now owns 3,135 shares of the home improvement retailer’s stock valued at $1,270,000 after purchasing an additional 26 shares during the last quarter. Stegent Equity Advisors Inc. increased its stake in Home Depot by 2.7% in the 3rd quarter. Stegent Equity Advisors Inc. now owns 1,006 shares of the home improvement retailer’s stock worth $408,000 after purchasing an additional 26 shares in the last quarter. Curio Wealth LLC raised its holdings in Home Depot by 13.5% during the 4th quarter. Curio Wealth LLC now owns 218 shares of the home improvement retailer’s stock worth $76,000 after buying an additional 26 shares during the period. BWM Planning LLC raised its holdings in Home Depot by 0.7% during the 2nd quarter. BWM Planning LLC now owns 4,105 shares of the home improvement retailer’s stock worth $1,505,000 after buying an additional 27 shares during the period. Finally, Navis Wealth Advisors LLC lifted its stake in Home Depot by 1.8% during the second quarter. Navis Wealth Advisors LLC now owns 1,532 shares of the home improvement retailer’s stock valued at $562,000 after buying an additional 27 shares in the last quarter. Institutional investors and hedge funds own 70.86% of the company’s stock.

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.