Erste Group Bank Boosts Earnings Estimates for Home Depot

The Home Depot, Inc. (NYSE:HD) – Erste Group Bank lifted their FY2027 earnings per share estimates for shares of Home Depot in a report issued on Thursday, August 27th. Erste Group Bank analyst S. Lingnau now anticipates that the home improvement retailer will post earnings per share of $15.00 for the year, up from their previous forecast of $14.98. The consensus estimate for Home Depot’s current full-year earnings is $15.00 per share. Erste Group Bank also issued estimates for Home Depot’s FY2028 earnings at $16.05 EPS.

Home Depot (NYSE:HD) last issued its earnings results on Tuesday, August 18th. The home improvement retailer reported $4.92 earnings per share 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 during the quarter, compared to analysts’ expectations of $47.24 billion. During the same period in the prior year, the business earned $4.68 EPS. The business’s revenue for the quarter was up 5.7% compared to the same quarter last year. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS.

Several other brokerages have also recently issued reports on HD. Robert W. Baird dropped their target price on shares of Home Depot from $430.00 to $380.00 and set an “outperform” rating on the stock in a report on Wednesday, May 20th. Oppenheimer reduced their price target on shares of Home Depot from $405.00 to $310.00 and set a “market perform” rating for the company in a report on Monday, May 18th. Guggenheim reaffirmed a “buy” rating and issued a $425.00 price target on shares of Home Depot in a research report on Wednesday, August 19th. Stifel Nicolaus increased their price objective on shares of Home Depot from $320.00 to $340.00 and gave the company a “hold” rating in a research note on Monday, August 17th. Finally, Wolfe Research lowered shares of Home Depot from an “outperform” rating to a “peer perform” rating in a report on Tuesday, June 23rd. Eighteen research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $375.54.

Home Depot Stock Performance

Shares of Home Depot stock opened at $319.70 on Monday. The company has a current ratio of 1.08, a quick ratio of 0.31 and a debt-to-equity ratio of 2.64. The stock’s fifty day moving average price is $340.90 and its 200-day moving average price is $337.53. The firm has a market cap of $318.96 billion, a P/E ratio of 22.37, a P/E/G ratio of 3.61 and a beta of 0.96. Home Depot has a 12 month low of $289.10 and a 12 month high of $426.75.

Institutional Investors Weigh In On Home Depot

Several institutional investors have recently bought and sold shares of the company. California State Teachers Retirement System grew its stake in Home Depot by 34,873.9% during the 2nd quarter. California State Teachers Retirement System now owns 525,674,125 shares of the home improvement retailer’s stock worth $185,394,750,000 after buying an additional 524,171,077 shares during the last quarter. BlackRock Inc. acquired a new position in Home Depot during the 2nd quarter valued at about $28,771,247,000. Bank of America Corp DE purchased a new stake in Home Depot in the second quarter valued at about $5,780,468,000. Norges Bank purchased a new stake in Home Depot in the fourth quarter valued at about $4,850,329,000. Finally, Bank of New York Mellon Corp acquired a new stake in Home Depot in the second quarter worth about $2,777,396,000. 70.86% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling at Home Depot

In other Home Depot news, CFO Richard V. Mcphail sold 5,989 shares of the stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $348.40, for a total transaction of $2,086,567.60. Following the completion of the sale, the chief financial officer directly owned 48,104 shares of the company’s stock, valued at approximately $16,759,433.60. This represents a 11.07% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, EVP Teresa Wynn 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 completion of the sale, the executive vice president owned 14,061 shares in the company, valued at $4,622,834.97. This represents a 14.86% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 9,154 shares of company stock valued at $3,132,798. 0.08% of the stock is currently owned by insiders.

Home Depot Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 17th. Shareholders of record on Thursday, September 3rd will be issued a $2.33 dividend. The ex-dividend date is Thursday, September 3rd. This represents a $9.32 dividend on an annualized basis and a yield of 2.9%. Home Depot’s payout ratio is currently 65.22%.

Key Stories Impacting Home Depot

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

• Positive Sentiment: Home Depot is expanding its AI-powered Magic Apron tools across all U.S. stores. The technology provides localized product searches and project assistance, potentially improving customer engagement and supporting the company’s “Pro” growth strategy. Some analysis estimates the stock could be roughly 15% undervalued if that growth narrative gains traction. Home Depot Could Be 15% Undervalued On Its Pro Growth Narrative
• Positive Sentiment: The retailer’s latest quarterly results exceeded expectations, with earnings of $4.92 per share versus the $4.73 consensus and revenue of $47.86 billion, up 5.7% year over year. Analysts maintain a “Moderate Buy” consensus rating and an average price target above the current trading level.
• Positive Sentiment: Home Depot is scheduled to pay a quarterly dividend of $2.33 per share on September 17 to shareholders of record on September 3. The annualized dividend is $9.32, representing a yield of approximately 2.8%.
• Neutral Sentiment: Chief Financial Officer Richard McPhail and merchandising executive Billy Bastek will present at the Goldman Sachs Global Consumer and Retail Conference on September 15. Investors may look for updated commentary on demand, housing trends, and the professional business. The Home Depot to Present at the Goldman Sachs Global Consumer and Retail Conference
• Negative Sentiment: High mortgage rates continue to discourage homeowners from moving, with the probability of changing residences reaching a record-low 13.5%. Home Depot reportedly sees “no sign” of a housing-market turnaround, which weighs on renovation and big-ticket project demand. Americans Stop Moving as Mortgage Lock-In Persists
• Negative Sentiment: DIY demand remains weak as consumers defer larger home-improvement projects. Digital sales, broader category gains, and higher big-ticket sales provide some offset, but continued consumer caution is a near-term concern. Home Depot Faces Weak DIY Demand
• Negative Sentiment: Executive Vice President Teresa Wynn Roseborough sold 2,455 shares valued at approximately $807,000, reducing her direct ownership by 14.86%. While a single insider sale does not establish a trend, it may add modest pressure to investor sentiment. Teresa Wynn Roseborough Sells Shares of Home Depot

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.