Sanford C. Bernstein Has Lowered Expectations for Home Depot (NYSE:HD) Stock Price

Home Depot (NYSE:HD) had its price target cut by equities researchers at Sanford C. Bernstein from $390.00 to $365.00 in a research note issued to investors on Thursday, Marketbeat Ratings reports. The brokerage presently has a “market perform” rating on the home improvement retailer’s stock. Sanford C. Bernstein’s target price would suggest a potential upside of 22.76% from the company’s previous close.

HD has been the topic of several other research reports. Weiss Ratings restated a “hold (c+)” rating on shares of Home Depot in a report on Friday, March 27th. Daiwa Securities Group raised their target price on shares of Home Depot from $360.00 to $390.00 and gave the stock a “neutral” rating in a report on Thursday, February 26th. Royal Bank Of Canada raised their target price on shares of Home Depot from $363.00 to $377.00 and gave the stock a “sector perform” rating in a report on Wednesday, February 25th. Truist Financial cut their target price on shares of Home Depot from $424.00 to $394.00 and set a “buy” rating on the stock in a report on Wednesday. Finally, Citigroup dropped their price target on Home Depot from $450.00 to $400.00 and set a “buy” rating for the company in a research note on Tuesday. Twenty research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Home Depot has an average rating of “Moderate Buy” and an average price target of $405.66.

Home Depot Stock Down 2.3%

Shares of Home Depot stock opened at $297.34 on Thursday. The company has a debt-to-equity ratio of 3.62, a quick ratio of 0.26 and a current ratio of 1.06. Home Depot has a 52-week low of $296.88 and a 52-week high of $426.75. The stock has a market capitalization of $296.16 billion, a price-to-earnings ratio of 20.90, a P/E/G ratio of 3.51 and a beta of 1.00. The company’s 50 day moving average price is $331.77 and its 200-day moving average price is $354.39.

Home Depot (NYSE:HD) last issued its earnings results on Tuesday, February 24th. The home improvement retailer reported $2.72 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.52 by $0.20. Home Depot had a net margin of 8.60% and a return on equity of 134.32%. The firm had revenue of $38.20 billion for the quarter, compared to analysts’ expectations of $38.01 billion. During the same quarter last year, the business earned $3.13 earnings per share. The business’s revenue was down 3.8% on a year-over-year basis. Home Depot has set its FY 2026 guidance at 14.230-14.799 EPS. Equities research analysts forecast that Home Depot will post 15.03 EPS for the current year.

Insider Buying and Selling

In related news, CFO Richard V. Mcphail sold 2,550 shares of the firm’s stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $368.89, for a total value of $940,669.50. Following the completion of the sale, the chief financial officer owned 44,566 shares of the company’s stock, valued at $16,439,951.74. This trade represents a 5.41% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. 0.08% of the stock is owned by insiders.

Institutional Trading of Home Depot

A number of institutional investors and hedge funds have recently added to or reduced their stakes in HD. Stegent Equity Advisors Inc. lifted its position in Home Depot by 2.7% during the third quarter. Stegent Equity Advisors Inc. now owns 1,006 shares of the home improvement retailer’s stock valued at $408,000 after buying an additional 26 shares during the period. Curio Wealth LLC lifted its position in Home Depot by 13.5% during the fourth quarter. Curio Wealth LLC now owns 218 shares of the home improvement retailer’s stock valued at $76,000 after buying an additional 26 shares during the period. Arcus Capital Partners LLC lifted its position in Home Depot by 1.1% during the third quarter. Arcus Capital Partners LLC now owns 2,445 shares of the home improvement retailer’s stock valued at $991,000 after buying an additional 27 shares during the period. Westfuller Advisors LLC lifted its position in Home Depot by 2.1% during the fourth quarter. Westfuller Advisors LLC now owns 1,325 shares of the home improvement retailer’s stock valued at $456,000 after buying an additional 27 shares during the period. Finally, Darwin Wealth Management LLC lifted its position in Home Depot by 0.5% during the fourth quarter. Darwin Wealth Management LLC now owns 4,949 shares of the home improvement retailer’s stock valued at $1,703,000 after buying an additional 27 shares during the period. Hedge funds and other institutional investors own 70.86% of the company’s stock.

Home Depot News Roundup

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

• Positive Sentiment: Telsey Advisory reiterated a Buy rating on Home Depot, suggesting at least one Wall Street firm still sees value in the shares despite recent volatility.
• Positive Sentiment: Some commentary has highlighted Home Depot as a potential beneficiary if housing turnover and mortgage-rate conditions improve, which could support future sales and earnings.
• Neutral Sentiment: Investors are watching Home Depot closely ahead of earnings on May 19, with articles focusing on whether pro demand, digital tools, and repair projects can offset a weaker housing backdrop.
• Neutral Sentiment: Jim Cramer said Home Depot can perform well in a lower-rate environment, but also noted the stock needs stronger housing turnover to really accelerate.
• Negative Sentiment: Sanford C. Bernstein cut its price target on Home Depot to $365 from $390 and kept a Market Perform rating, reflecting a more cautious view on near-term upside.
• Negative Sentiment: A new class-action lawsuit reportedly pressured the stock, adding legal uncertainty at an already sensitive time for investors.
• Negative Sentiment: Recent pre-earnings pullback and broader worries about housing turnover have also weighed on sentiment, helping explain why Home Depot stock has been moving lower.

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.