Home Depot (NYSE:HD) Stock Sees Heavy Call Option Buying

The Home Depot, Inc. (NYSE:HD) was the recipient of unusually large options trading activity on Thursday. Stock investors purchased 33,592 call options on the company. This is an increase of approximately 54% compared to the average volume of 21,805 call options.

Home Depot Price Performance

Shares of HD stock traded up $9.22 during mid-day trading on Thursday, hitting $294.99. 3,526,978 shares of the stock were exchanged, compared to its average volume of 4,427,124. 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 $277.15 and a 52-week high of $397.63. The firm has a fifty day moving average of $319.10 and a 200 day moving average of $325.60. The company has a market cap of $294.30 billion, a PE ratio of 20.65, a price-to-earnings-growth ratio of 2.04 and a beta of 1.00.

Home Depot (NYSE:HD) last issued its quarterly earnings results on Tuesday, August 18th. The home improvement retailer reported $4.92 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 the consensus estimate of $47.24 billion. During the same quarter in the prior year, the business posted $4.68 earnings per share. Home Depot’s revenue for the quarter was up 5.7% on a year-over-year basis. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. Research analysts anticipate that Home Depot will post 15.01 earnings per share for the current year.

Home Depot Announces Dividend

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

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on HD. UBS Group restated a “buy” rating on shares of Home Depot in a research note on Thursday, September 17th. DA Davidson reaffirmed a “buy” rating and issued a $377.00 price target on shares of Home Depot in a report on Wednesday, August 19th. Sanford C. Bernstein lowered their price objective on shares of Home Depot from $354.00 to $344.00 and set a “market perform” rating for the company in a research note on Wednesday, September 9th. Wolfe Research lowered shares of Home Depot from an “outperform” rating to a “peer perform” rating in a report on Tuesday, June 23rd. Finally, Gordon Haskett boosted their price target on Home Depot from $320.00 to $330.00 in a research note on Friday, June 12th. Eighteen equities research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, Home Depot presently has an average rating of “Moderate Buy” and an average target price of $375.93.

Trending Headlines about Home Depot

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

• Positive Sentiment: Melius Research initiated coverage with a Buy rating and a $397 price target, implying substantial upside from recent levels. The bullish view is based on an improving outlook for home centers and longer-term demand for home improvement. Home Depot Stock Is Down 17% in 2026. Here’s Why Melius Still Sees $397
• Positive Sentiment: Several analysts have raised earnings expectations ahead of Home Depot’s upcoming results, reinforcing confidence that near-term operating trends may be better than the share price suggests. Should Analyst Upgrades to Earnings Forecasts Require Action From Home Depot Investors?
• Positive Sentiment: Home Depot’s elevated free-cash-flow yield of approximately 5.4% may attract value-oriented investors, particularly as the stock trades at a discount to its historical valuation and the broader market. Why Is Everyone Ignoring Home Depot Stock’s High Cash Yield?
• Neutral Sentiment: The company’s 2026 Innovation Award highlighted products designed to simplify DIY and professional projects. The recognition supports merchandising and customer-engagement efforts but is unlikely to materially affect near-term earnings. The Home Depot Announces 2026 Innovation Award Winners
• Negative Sentiment: Technical analysts warn that the area near $288 could act as resistance; failure to regain that level may renew selling pressure. Stock of the Day: Will Home Depot Continue to Trend Lower?
• Negative Sentiment: Interest rates remain a major overhang because higher borrowing costs can delay home purchases, renovations and other big-ticket projects. Consumer-sector weakness and Home Depot’s roughly 15% year-to-date decline underscore those concerns. Jim Cramer Sees Little Relief for Home Depot Until Rates Fall

Insider Activity

In other news, EVP Teresa Roseborough sold 2,455 shares of the stock in a transaction on Friday, August 28th. The stock was 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 approximately $4,622,834.97. This represents a 14.86% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Michael F. Rowe sold 710 shares of the firm’s stock in a transaction on Wednesday, August 26th. The stock was sold at an average price of $336.76, for a total value of $239,099.60. Following the completion of the sale, the executive vice president directly owned 6,838 shares of the company’s stock, valued at $2,302,764.88. The trade was a 9.41% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 9,829 shares of company stock worth $3,339,314 in the last quarter. 0.08% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Home Depot

Several institutional investors have recently bought and sold shares of HD. Bank of Nova Scotia acquired a new stake in Home Depot in the second quarter worth about $118,723,000. Gator Capital Management LLC acquired a new stake in shares of Home Depot during the 4th quarter worth approximately $3,693,000. AFT Forsyth & Company Inc. bought a new stake in shares of Home Depot during the second quarter worth approximately $1,896,000. Field & Main Bank acquired a new position in Home Depot in the second quarter valued at approximately $6,286,000. Finally, State Street Corp grew its holdings in Home Depot by 1.1% during the 2nd quarter. State Street Corp now owns 47,175,026 shares of the home improvement retailer’s stock worth $16,637,688,000 after acquiring an additional 499,168 shares during the period. 70.86% of the stock is currently owned by institutional investors and hedge funds.

About Home Depot

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.