Erste Group Bank Expects Stronger Earnings for Home Depot

The Home Depot, Inc. (NYSE:HD) – Investment analysts at Erste Group Bank upped their FY2027 earnings estimates for Home Depot in a research note issued to investors on Thursday, August 27th. Erste Group Bank analyst S. Lingnau now forecasts that the home improvement retailer will earn $15.00 per share 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.

Several other research firms have also commented on HD. Robert W. Baird cut their price target on Home Depot from $430.00 to $380.00 and set an “outperform” rating on the stock in a research report on Wednesday, May 20th. Weiss Ratings upgraded shares of Home Depot from a “hold (c-)” rating to a “hold (c)” rating in a research report on Tuesday, July 7th. JPMorgan Chase & Co. cut their target price on shares of Home Depot from $423.00 to $396.00 and set an “overweight” rating on the stock in a report on Wednesday, May 20th. Wells Fargo & Company upped their price target on shares of Home Depot from $360.00 to $400.00 and gave the company an “overweight” rating in a research report on Tuesday, August 11th. Finally, Sanford C. Bernstein reiterated a “market perform” rating and set a $354.00 price target on shares of Home Depot in a research note on Wednesday, August 19th. Eighteen investment analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Home Depot has an average rating of “Moderate Buy” and a consensus price target of $375.54.

Home Depot Stock Down 0.5%

Shares of NYSE HD opened at $328.52 on Monday. The business has a 50-day moving average price of $341.00 and a 200 day moving average price of $338.03. The stock has a market cap of $327.76 billion, a PE ratio of 22.99, a price-to-earnings-growth ratio of 3.64 and a beta of 0.95. The company has a quick ratio of 0.31, a current ratio of 1.08 and a debt-to-equity ratio of 2.64. Home Depot has a 52-week low of $289.10 and a 52-week high of $426.75.

Home Depot (NYSE:HD) last issued its quarterly earnings data on Tuesday, August 18th. The home improvement retailer reported $4.92 earnings per share (EPS) 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 company had revenue of $47.86 billion for the quarter, compared to analyst estimates of $47.24 billion. During the same quarter last year, the company posted $4.68 earnings per share. The business’s quarterly revenue 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.

Home Depot Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 17th. Stockholders of record on Thursday, September 3rd will be issued a $2.33 dividend. The ex-dividend date of this dividend is Thursday, September 3rd. This represents a $9.32 dividend on an annualized basis and a dividend yield of 2.8%. Home Depot’s payout ratio is presently 65.22%.

Insider Transactions at Home Depot

In related news, EVP Michael F. Rowe sold 710 shares of Home Depot stock in a transaction on Wednesday, August 26th. The shares were sold at an average price of $336.76, for a total value of $239,099.60. Following the transaction, the executive vice president directly owned 6,838 shares in the company, valued at $2,302,764.88. This trade represents a 9.41% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP Teresa Wynn Roseborough sold 2,455 shares of the business’s stock in a transaction on 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 transaction, the executive vice president directly 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 SEC filing for this sale provides additional information. Insiders sold 9,154 shares of company stock worth $3,132,798 over the last 90 days. 0.08% of the stock is currently owned by insiders.

Institutional Trading of Home Depot

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Parvin Asset Management LLC increased its position 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 worth $26,000 after purchasing an additional 33 shares during the period. Zeit Capital LLC purchased a new stake in shares of Home Depot in the second quarter valued at approximately $26,000. Advocate Investing Services LLC purchased a new stake in shares of Home Depot in the fourth quarter valued at approximately $25,000. Cache Advisors LLC acquired a new position in Home Depot during the first quarter worth $27,000. Finally, Imprint Wealth LLC acquired a new position in Home Depot during the third quarter worth $34,000. Hedge funds and other institutional investors 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.