Home Depot (NYSE:HD) Shares Down 3.1% – Here’s Why

The Home Depot, Inc. (NYSE:HD)’s share price fell 3.1% on Wednesday . The company traded as low as $330.14 and last traded at $330.7510. 3,522,268 shares traded hands during 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: The Home Depot expanded its Pro digital experience with new project-management and AI tools aimed at contractors and professional renovators — a move that could deepen pro customer loyalty, drive repeat purchases and support margins over time. The Home Depot Expands Pro Digital Experience
• Positive Sentiment: Marketing push tied to FIFA World Cup 2026: HD partnered with David Beckham and launched promotions/sweepstakes to drive seasonal backyard and outdoor-project demand — a consumer-facing initiative that may lift traffic and average tickets in spring/summer. Home Depot Teams Up with David Beckham
• Neutral Sentiment: Valuation/technical re-check: Commentary and analysis pieces are asking whether recent weakness makes HD a buy, hold or avoid — helpful for investors re-assessing entry points but not an immediate catalyst. The write-up walks through valuation metrics amid the pullback. Is It Time To Reassess Home Depot?
• Neutral Sentiment: Broader market backdrop is bearish: analysts note major indexes fell below 200-day moving averages and sticky inflation may keep the Fed from cutting rates — a macro environment that increases volatility and investor risk aversion, which can pressure retail and cyclical names like HD. MarketBeat Week in Review
• Negative Sentiment: Unusually large put-option flow: Traders bought heavy volumes of HD puts (reports cite ~45,863 puts on a recent session, ~48% above typical daily put volume), signaling elevated hedging or outright bearish bets that can amplify near-term downside as sentiment shifts. Investors Buy High Volume of Put Options on Home Depot

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on HD shares. Wells Fargo & Company lifted their price objective on Home Depot from $395.00 to $420.00 and gave the stock an “overweight” rating in a research note on Wednesday, February 25th. Daiwa Securities Group upped their price target on Home Depot from $360.00 to $390.00 and gave the stock a “neutral” rating in a report on Thursday, February 26th. Guggenheim raised their price objective on shares of Home Depot from $400.00 to $425.00 and gave the stock a “buy” rating in a research note on Wednesday, February 25th. Telsey Advisory Group upped their target price on shares of Home Depot from $410.00 to $435.00 and gave the company an “outperform” rating in a research note on Wednesday, February 25th. Finally, Stifel Nicolaus dropped their price objective on shares of Home Depot from $370.00 to $350.00 and set a “hold” rating on the stock in a report on Monday, December 1st. Twenty analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $416.00.

Home Depot Price Performance

The stock has a market cap of $319.93 billion, a price-to-earnings ratio of 22.58, a P/E/G ratio of 3.62 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 stock’s 50 day simple moving average is $372.63 and its two-hundred day simple moving average is $374.81.

Home Depot (NYSE:HD) last released 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. The company had revenue of $38.20 billion during the quarter, compared to the consensus estimate of $38.01 billion. Home Depot had a net margin of 8.60% and a return on equity of 134.32%. The firm’s revenue for the quarter was down 3.8% compared to the same quarter last year. During the same period last year, the firm earned $3.13 EPS. Home Depot has set its FY 2026 guidance at 14.230-14.799 EPS. On average, analysts forecast that The Home Depot, Inc. will post 15.13 earnings per share for the current fiscal year.

Home Depot Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, March 26th. Stockholders 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 dividend yield of 2.9%. The ex-dividend date of this dividend is Thursday, March 12th. This is a boost from Home Depot’s previous quarterly dividend of $2.30. Home Depot’s payout ratio is currently 65.50%.

Insider Activity at Home Depot

In related news, CFO Richard V. Mcphail sold 2,550 shares of the firm’s stock in a transaction that occurred on Wednesday, March 4th. The stock was 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 owned 44,566 shares in the company, valued at $16,439,951.74. This trade represents a 5.41% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Teresa Wynn Roseborough sold 2,872 shares of the company’s stock in a transaction 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 owned 13,196 shares in the company, valued at $4,599,069.92. This trade represents a 17.87% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.10% of the stock is owned by company insiders.

Hedge Funds Weigh In On Home Depot

Several institutional investors have recently added to or reduced their stakes in HD. Advocate Investing Services LLC bought a new stake in Home Depot during the 4th quarter worth approximately $25,000. Parvin Asset Management LLC grew its holdings 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. Key Capital Management INC acquired a new stake in shares of Home Depot in the fourth quarter valued at $28,000. Sagard Holdings Management Inc. bought a new position in shares of Home Depot in the second quarter valued at about $29,000. Finally, Abound Financial LLC acquired a new position in Home Depot during the 4th quarter worth about $29,000. 70.86% of the stock is owned by institutional investors.

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.