Home Depot (NYSE:HD) Upgraded at Melius Research

Melius Research upgraded shares of Home Depot (NYSE:HD) to a strong-buy rating in a research report report published on Tuesday morning,Zacks reports.

A number of other brokerages have also recently issued reports on HD. TD Cowen restated a “buy” rating on shares of Home Depot in a report on Monday, August 10th. Argus reiterated a “buy” rating and issued a $400.00 target price on shares of Home Depot in a report on Wednesday, August 19th. Truist Financial lifted their price target on shares of Home Depot from $369.00 to $373.00 and gave the stock a “buy” rating in a research report on Wednesday, August 19th. Guggenheim reissued a “buy” rating and issued a $425.00 price target on shares of Home Depot in a report on Wednesday, August 19th. Finally, Mizuho upped their price objective on shares of Home Depot from $385.00 to $390.00 and gave the company an “outperform” rating in a research report on Wednesday, August 19th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $375.93.

Home Depot Stock Up 3.5%

NYSE:HD opened at $295.64 on Tuesday. Home Depot has a 12-month low of $277.15 and a 12-month high of $397.63. The company has a quick ratio of 0.31, a current ratio of 1.08 and a debt-to-equity ratio of 2.64. The firm has a market capitalization of $294.96 billion, a P/E ratio of 20.69, a P/E/G ratio of 2.03 and a beta of 1.00. The stock’s fifty day simple moving average is $318.34 and its 200-day simple moving average is $325.42.

Home Depot (NYSE:HD) last posted its earnings results 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. The company had revenue of $47.86 billion during the quarter, compared to analyst estimates of $47.24 billion. Home Depot had a return on equity of 106.42% and a net margin of 8.41%.The company’s revenue for the quarter was up 5.7% compared to the same quarter last year. During the same period in the previous year, the company earned $4.68 EPS. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. Equities research analysts expect that Home Depot will post 15.01 earnings per share for the current year.

Home Depot Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, September 17th. Shareholders of record on Thursday, September 3rd were issued a dividend of $2.33 per share. This represents a $9.32 annualized dividend and a yield of 3.2%. The ex-dividend date was Thursday, September 3rd. Home Depot’s dividend payout ratio (DPR) is 65.22%.

Insider Activity at Home Depot

In other Home Depot news, EVP Teresa Roseborough sold 2,455 shares of Home Depot stock in a transaction that occurred on Friday, August 28th. The shares were sold at an average price of $328.77, for a total value of $807,130.35. Following the transaction, the executive vice president owned 14,061 shares of the company’s stock, valued at approximately $4,622,834.97. The trade was a 14.86% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO Richard McPhail sold 5,989 shares of the company’s stock in a transaction that occurred on 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 transaction, the chief financial officer owned 48,104 shares of the company’s stock, valued at $16,759,433.60. This trade represents a 11.07% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 9,829 shares of company stock worth $3,339,314. Corporate insiders own 0.08% of the company’s stock.

Hedge Funds Weigh In On Home Depot

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. acquired a new position in shares of Home Depot during the second quarter worth about $28,771,247,000. State Street Corp raised its position in Home Depot by 1.1% in the 2nd quarter. State Street Corp now owns 47,175,026 shares of the home improvement retailer’s stock valued at $16,637,688,000 after buying an additional 499,168 shares during the last quarter. Bank of America Corp DE acquired a new stake in Home Depot in the 2nd quarter valued at approximately $5,780,468,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its stake in Home Depot by 1.9% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 8,040,796 shares of the home improvement retailer’s stock valued at $2,766,838,000 after acquiring an additional 152,902 shares in the last quarter. Finally, Bank of New York Mellon Corp acquired a new position in Home Depot during the 2nd quarter worth approximately $2,777,396,000. 70.86% of the stock is owned by institutional investors and hedge funds.

Home Depot News Summary

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

• Positive Sentiment: Traders purchased 33,592 HD call options, roughly 54% above the average daily volume. The activity may indicate increased bullish speculation or hedging demand, although options flow does not guarantee future gains.
• Positive Sentiment: Melius Research initiated coverage with a Buy rating and a $397 price target, implying substantial upside from recent trading levels. The firm’s constructive view of home-improvement retailers helped support the stock. Home Depot Stock Is Down 17% in 2026. Here’s Why Melius Still Sees $397
• Positive Sentiment: Analysts have reportedly raised earnings forecasts ahead of Home Depot’s results, reinforcing expectations that improving business trends could help the retailer recover from its 2026 decline. Should Analyst Upgrades to Earnings Forecasts Require Action From Home Depot Investors?
• Positive Sentiment: Home Depot’s roughly 5.4% free-cash-flow yield is above the S&P 500 median, making the shares appear attractively valued if housing and consumer demand stabilize. Why Is Everyone Ignoring Home Depot Stock’s High Cash Yield?
• Neutral Sentiment: The company announced its 2026 Innovation Award winners, highlighting products designed to simplify DIY and professional renovation projects. The announcement supports Home Depot’s merchandising strategy but is unlikely to materially change near-term earnings. The Home Depot Announces 2026 Innovation Award Winners
• Negative Sentiment: Technical analysts warned that the area near $288 could act as resistance; failure to reclaim it convincingly could renew the downtrend. Home Depot is also trading below its key moving averages after a significant year-to-date decline. Stock of the Day: Will Home Depot Continue to Trend Lower?
• Negative Sentiment: Weakness across consumer discretionary and staples stocks, combined with investor concerns that high interest rates are limiting housing activity, continues to weigh on the broader backdrop for HD. Jim Cramer Sees Little Relief for Home Depot Until Rates Fall

Home Depot Company Profile

The Home Depot, Inc (NYSE: HD) is a home improvement retailer serving do-it-yourself customers, professional contractors, and other trade professionals. The company sells building materials, appliances, décor, hardware, plumbing and electrical supplies, tools, outdoor products, and lawn and garden merchandise through its retail stores and digital platforms.

Home Depot also provides services such as installation, equipment rental, delivery, and project support. Its professional customer offerings include job-lot quantities, delivery solutions, credit services, and tools designed to help contractors manage construction and renovation projects.