Home Depot Target of Unusually High Options Trading (NYSE:HD)

The Home Depot, Inc. (NYSE:HD) saw unusually large options trading activity on Friday. Stock investors bought 46,130 call options on the stock. This is an increase of approximately 37% compared to the average daily volume of 33,739 call options.

Analysts Set New Price Targets

Several research analysts recently commented on the company. Weiss Ratings reissued a “hold (c+)” rating on shares of Home Depot in a research note on Monday, December 29th. BNP Paribas Exane boosted their price target on shares of Home Depot from $353.00 to $355.00 and gave the stock a “neutral” rating in a research report on Friday, December 5th. TD Cowen cut their price objective on shares of Home Depot from $470.00 to $410.00 and set a “buy” rating for the company in a report on Wednesday, November 19th. Sanford C. Bernstein reissued a “market perform” rating and set a $362.00 price objective on shares of Home Depot in a research note on Monday, November 24th. Finally, HSBC cut their target price 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-one research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $402.10.

Home Depot Trading Up 3.8%

Home Depot stock traded up $13.65 during midday trading on Friday, reaching $373.21. 3,858,790 shares of the stock traded hands, compared to its average volume of 4,396,931. The firm has a market cap of $371.53 billion, a PE ratio of 25.44, 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 has a 50-day simple moving average of $354.64 and a two-hundred day simple moving average of $377.51. Home Depot has a 12-month low of $326.31 and a 12-month high of $426.75.

Home Depot (NYSE:HD) last posted its quarterly earnings data on Tuesday, November 18th. The home improvement retailer reported $3.74 EPS for the quarter, missing the consensus estimate of $3.83 by ($0.09). The business had revenue of $41.35 billion during the quarter, compared to analysts’ expectations of $41.06 billion. Home Depot had a net margin of 8.77% and a return on equity of 160.74%. The company’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 expect that Home Depot will post 15.13 earnings per share for the current fiscal year.

Home Depot Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, December 18th. Stockholders of record on Thursday, December 4th were paid a $2.30 dividend. This represents a $9.20 annualized dividend and a dividend yield of 2.5%. The ex-dividend date was Thursday, December 4th. Home Depot’s dividend payout ratio (DPR) is presently 62.71%.

Home Depot News Roundup

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

• Positive Sentiment: Unusually large call buying on Friday—investors bought 46,130 call options (≈+37% vs. a typical 33,739). This suggests bullish speculative positioning or directional hedging that can lift near‑term demand for the stock.
• Positive Sentiment: Jim Cramer publicly favored Home Depot as a housing-play versus peers, which can spur retail buying and short‑term momentum. Jim Cramer Prefers Home Depot Over Fortune Brands as a Housing Play
• Positive Sentiment: Market reaction to a vendor-related response (Kurt Weiss Greenhouses) drove positive press and a stock surge, indicating investors rewarded the company’s responsiveness on ESG/supply‑chain issues. “…Conduct Business in a Responsible Manner”: Home Depot Stock Surges
• Neutral Sentiment: Elevated investor interest/search activity flagged by Zacks—more eyeballs can increase short‑term volatility but doesn’t itself change fundamentals. Investors Heavily Search The Home Depot, Inc. (HD)
• Neutral Sentiment: General unusual options flow coverage notes heightened activity (multiple reports), which can amplify moves but is ambiguous on direction without knowing option strike/expiry details. Home Depot Unusual Options Activity
• Negative Sentiment: Heavy put buying on Thursday—57,026 puts (≈+71% vs. a 33,335 average) signals bearish bets or protective hedging that could pressure sentiment if sustained.
• Negative Sentiment: Pomerantz LLP launched an investor investigation into Home Depot, introducing potential legal/financial risk that can weigh on the stock until details are clarified. Pomerantz Investigates Claims on Behalf of HD Investors

Insiders Place Their Bets

In other news, EVP Ann Marie Campbell sold 145 shares of the business’s stock in a transaction dated Thursday, December 11th. The shares were sold at an average price of $358.26, for a total transaction of $51,947.70. Following the completion of 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Angie Brown sold 1,946 shares of the firm’s stock in a transaction dated Friday, December 12th. The shares were sold at an average price of $357.63, for a total transaction of $695,947.98. Following the completion of the transaction, the executive vice president directly owned 3,941 shares in the company, valued at $1,409,419.83. This represents a 33.06% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, 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

Several hedge funds have recently added to or reduced their stakes in HD. Parvin Asset Management LLC raised its stake in shares of Home Depot by 110.0% during the third quarter. Parvin Asset Management LLC now owns 63 shares of the home improvement retailer’s stock worth $26,000 after purchasing an additional 33 shares during the last quarter. Legend Financial Advisors Inc. acquired a new position in Home Depot in the 2nd quarter valued at $28,000. Sagard Holdings Management Inc. purchased a new position in Home Depot during the 2nd quarter worth $29,000. Financially Speaking Inc acquired a new stake in shares of Home Depot in the 3rd quarter worth $31,000. Finally, LFA Lugano Financial Advisors SA purchased a new stake in shares of Home Depot in the second quarter valued at about $32,000. Institutional investors and hedge funds own 70.86% of the company’s stock.

About Home Depot

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.