Erste Group Bank Lowers Earnings Estimates for Home Depot

The Home Depot, Inc. (NYSE:HD) – Investment analysts at Erste Group Bank lowered their FY2028 earnings estimates for shares of Home Depot in a note issued to investors on Tuesday, May 12th. Erste Group Bank analyst S. Lingnau now forecasts that the home improvement retailer will post earnings per share of $16.28 for the year, down from their previous estimate of $16.30. The consensus estimate for Home Depot’s current full-year earnings is $15.03 per share.

Several other analysts have also recently commented on HD. Piper Sandler reduced their target price on shares of Home Depot from $422.00 to $421.00 and set an “overweight” rating for the company in a research note on Friday. TD Cowen restated a “buy” rating on shares of Home Depot in a research note on Thursday, March 12th. Daiwa Securities Group increased their price target on shares of Home Depot from $360.00 to $390.00 and gave the company a “neutral” rating in a report on Thursday, February 26th. Wall Street Zen upgraded shares of Home Depot from a “sell” rating to a “hold” rating in a report on Sunday. Finally, Wells Fargo & Company cut their price target on shares of Home Depot from $420.00 to $375.00 and set an “overweight” rating for the company in a report on Thursday. Twenty investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $401.34.

Home Depot Stock Up 0.8%

HD stock opened at $299.98 on Tuesday. Home Depot has a one year low of $296.88 and a one year high of $426.75. The stock has a market capitalization of $298.79 billion, a PE ratio of 21.08, a price-to-earnings-growth ratio of 3.43 and a beta of 1.00. The company has a debt-to-equity ratio of 3.62, a quick ratio of 0.26 and a current ratio of 1.06. The company has a fifty day moving average of $330.53 and a 200-day moving average of $353.57.

Home Depot (NYSE:HD) last released its earnings results on Tuesday, May 19th. The home improvement retailer reported $3.43 EPS for the quarter, topping the consensus estimate of $3.42 by $0.01. Home Depot had a net margin of 8.60% and a return on equity of 134.32%. The company had revenue of $41.77 billion during the quarter, compared to analysts’ expectations of $41.59 billion. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS.

Hedge Funds Weigh In On Home Depot

Several hedge funds have recently added to or reduced their stakes in HD. Advocate Investing Services LLC purchased a new position in Home Depot during the 4th quarter valued at about $25,000. Parvin Asset Management LLC increased its holdings in Home Depot by 110.0% during the 3rd quarter. Parvin Asset Management LLC now owns 63 shares of the home improvement retailer’s stock valued at $26,000 after acquiring an additional 33 shares in the last quarter. Cache Advisors LLC purchased a new position in Home Depot during the 1st quarter valued at about $27,000. Key Capital Management INC purchased a new stake in shares of Home Depot during the fourth quarter worth about $28,000. Finally, Merkkuri Wealth Advisors LLC purchased a new stake in shares of Home Depot during the first quarter worth about $28,000. 70.86% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other Home Depot news, CFO Richard V. Mcphail sold 2,550 shares of the firm’s stock in a transaction dated Wednesday, March 4th. The shares were sold at an average price of $368.89, for a total transaction of $940,669.50. Following the completion of the transaction, the chief financial officer directly owned 44,566 shares in the company, valued at approximately $16,439,951.74. This trade represents a 5.41% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Company insiders own 0.08% of the company’s stock.

Home Depot Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, March 26th. Shareholders of record on Thursday, March 12th were issued a dividend of $2.33 per share. This is an increase from Home Depot’s previous quarterly dividend of $2.30. The ex-dividend date was Thursday, March 12th. This represents a $9.32 annualized dividend and a yield of 3.1%. Home Depot’s payout ratio is 65.50%.

Key Home Depot News

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

• Positive Sentiment: Home Depot beat first-quarter sales and earnings expectations, showing demand held up better than expected. Home Depot beats quarterly sales estimates on steady demand
• Positive Sentiment: The company reaffirmed its full-year outlook, easing fears that management would cut guidance ahead of the results. Home Depot’s stock rises as the full-year outlook was kept intact, a relief for worried investors
• Positive Sentiment: Management pointed to resilient professional demand and smaller DIY repair projects, suggesting core customers are still spending despite inflation and weak consumer confidence. Home Depot says core shopper is resilient in the face of higher gas prices, sales rise 5%
• Neutral Sentiment: Sales growth was modest, and comparable sales in the U.S. were only slightly positive, indicating the recovery in home improvement spending is still uneven. The Home Depot Announces First Quarter Fiscal 2026 Results; Reaffirms Fiscal 2026 Guidance
• Negative Sentiment: Several pre-earnings reports highlighted weak housing demand, high borrowing costs, and cautious consumer spending, which remain headwinds for future growth. Home Depot Posts Lower Profit Amid Slow Home Improvement Activity
• Negative Sentiment: Oppenheimer cut its price target to $310 from $405, reflecting more cautious expectations for the stock. Home Depot (NYSE:HD) Price Target Cut to $310.00 by Analysts at Oppenheimer

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.