Traders Purchase Large Volume of Call Options on Home Depot (NYSE:HD)

The Home Depot, Inc. (NYSE:HD) was the target of unusually large options trading activity on Friday. Stock traders bought 46,130 call options on the stock. This represents an increase of approximately 37% compared to the typical volume of 33,739 call options.

Home Depot Price Performance

HD stock opened at $374.67 on Friday. The company has a current ratio of 1.05, a quick ratio of 0.29 and a debt-to-equity ratio of 3.82. The firm has a market capitalization of $372.98 billion, a PE ratio of 25.54, a P/E/G ratio of 13.40 and a beta of 1.08. Home Depot has a one year low of $326.31 and a one year high of $426.75. The firm has a 50-day moving average of $354.54 and a two-hundred day moving average of $377.63.

Home Depot (NYSE:HD) last posted its quarterly earnings data on Tuesday, November 18th. The home improvement retailer reported $3.74 earnings per share for the quarter, missing the consensus estimate of $3.83 by ($0.09). The firm had revenue of $41.35 billion for the quarter, compared to analysts’ expectations of $41.06 billion. Home Depot had a return on equity of 160.74% and a net margin of 8.77%.The company’s revenue for the quarter was up 2.8% on a year-over-year basis. During the same quarter in the previous year, the firm posted $3.78 earnings per share. Home Depot has set its FY 2025 guidance at 14.478-14.478 EPS. On average, analysts forecast that Home Depot will post 15.13 earnings per share for the current year.

Home Depot Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, December 18th. Investors of record on Thursday, December 4th were issued a dividend of $2.30 per share. This represents a $9.20 annualized dividend and a dividend yield of 2.5%. The ex-dividend date was Thursday, December 4th. Home Depot’s dividend payout ratio (DPR) is currently 62.71%.

Trending Headlines about Home Depot

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

• Positive Sentiment: Investors expect a White House housing initiative to boost homebuilding and repair activity, which should lift demand for Home Depot’s products and services. Trump Housing Plan Sends Home Depot Stock Higher
• Positive Sentiment: Large call buying occurred today (46,130 calls, ~37% above typical volume), indicating speculative or hedged bullish positioning that can amplify upside near term.
• Positive Sentiment: Prominent TV commentary favors HD as a housing/play (Jim Cramer preferring Home Depot), which can drive retail flows and sentiment. Jim Cramer Prefers Home Depot Over Fortune Brands as a Housing Play
• Positive Sentiment: A vendor-related issue (Kurt Weiss Greenhouses) drew attention but the company’s response was viewed positively by some outlets, removing a near-term reputational overhang. Home Depot Stock Surges With Kurt Weiss Greenhouses Response
• Neutral Sentiment: Broader market strength (Dow gains) has supported HD alongside other large-cap consumer names, a technical tailwind rather than company-specific news. Nike, Home Depot share gains contribute to Dow’s nearly 225-point jump
• Neutral Sentiment: Investor interest metrics and analyst/valuation write-ups are getting attention, but they largely summarize mixed fundamentals (recent EPS miss vs. solid revenue) rather than new catalysts. Assessing Home Depot (HD) Valuation After Recent Mixed Share Price Performance Investors Heavily Search The Home Depot, Inc. (HD)
• Negative Sentiment: Earlier unusual put buying (57,026 puts) indicates some market participants taking or hedging for downside risk—this raises near-term volatility risk.
• Negative Sentiment: A Pomerantz law firm investigation notice was filed, signaling potential shareholder litigation risk that can weigh on sentiment until resolved. Pomerantz Law Firm Investigates Claims On Behalf of Investors of The Home Depot, Inc.

Insider Buying and Selling

In related news, EVP Angie Brown sold 1,946 shares of the stock in a transaction dated Friday, December 12th. The shares were sold at an average price of $357.63, for a total value of $695,947.98. Following the sale, the executive vice president owned 3,941 shares of the company’s stock, valued at $1,409,419.83. This trade represents a 33.06% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Teresa Wynn Roseborough sold 2,872 shares of the business’s stock in a transaction dated Friday, December 26th. The shares were sold at an average price of $348.52, for a total transaction of $1,000,949.44. Following the transaction, the executive vice president directly owned 13,196 shares of the company’s stock, valued at $4,599,069.92. The trade was a 17.87% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 4,963 shares of company stock valued at $1,748,845 in the last quarter. Company insiders own 0.10% of the company’s stock.

Institutional Trading of Home Depot

A number of institutional investors have recently added to or reduced their stakes in the business. Parvin Asset Management LLC raised its holdings in Home Depot by 110.0% during the third quarter. Parvin Asset Management LLC now owns 63 shares of the home improvement retailer’s stock valued at $26,000 after buying an additional 33 shares in the last quarter. Legend Financial Advisors Inc. bought a new stake in shares of Home Depot during the 2nd quarter worth $28,000. Sagard Holdings Management Inc. bought a new stake in shares of Home Depot during the 2nd quarter worth $29,000. Financially Speaking Inc acquired a new position in Home Depot in the 3rd quarter valued at $31,000. Finally, LFA Lugano Financial Advisors SA acquired a new stake in shares of Home Depot in the second quarter valued at about $32,000. 70.86% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several research firms have recently issued reports on HD. Jefferies Financial Group reissued a “buy” rating and issued a $424.00 price target on shares of Home Depot in a research note on Wednesday, December 10th. The Goldman Sachs Group reiterated a “buy” rating and issued a $413.00 target price on shares of Home Depot in a research report on Wednesday, December 10th. Stifel Nicolaus lowered their target price on shares of Home Depot from $370.00 to $350.00 and set a “hold” rating on the stock in a research note on Monday, December 1st. Daiwa Capital Markets boosted their price target on shares of Home Depot from $348.00 to $360.00 and gave the stock a “neutral” rating in a research report on Tuesday, December 16th. Finally, Telsey Advisory Group decreased their price objective on shares of Home Depot from $430.00 to $410.00 and set an “outperform” rating for the company in a report on Wednesday, December 10th. Twenty-one analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, Home Depot presently has an average rating of “Moderate Buy” and an average price target of $402.10.

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.