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

The Home Depot, Inc. (NYSE:HD) saw some unusual options trading on Friday. Stock investors purchased 46,130 call options on the stock. This represents an increase of approximately 37% compared to the typical daily volume of 33,739 call options.

Home Depot News Roundup

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 Transactions at Home Depot

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

Hedge Funds Weigh In On Home Depot

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

Home Depot Trading Up 4.2%

HD opened at $374.67 on Friday. Home Depot has a twelve month low of $326.31 and a twelve month high of $426.75. The company has a fifty day moving average of $354.54 and a 200-day moving average of $377.75. The stock has a market cap of $372.98 billion, a PE ratio of 25.54, a price-to-earnings-growth ratio of 13.96 and a beta of 1.08. The company has a quick ratio of 0.29, a current ratio of 1.05 and a debt-to-equity ratio of 3.82.

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

Home Depot Dividend Announcement

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

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on HD shares. UBS Group set a $430.00 price target on Home Depot in a report on Wednesday, December 10th. Guggenheim reduced their target price on shares of Home Depot from $450.00 to $400.00 and set a “buy” rating on the stock in a report on Thursday, November 20th. Argus dropped their price target on shares of Home Depot from $450.00 to $425.00 and set a “buy” rating for the company in a research note on Thursday, November 20th. Royal Bank Of Canada cut their price target on shares of Home Depot from $376.00 to $366.00 and set a “sector perform” rating on the stock in a report on Wednesday, December 10th. Finally, DA Davidson decreased their price objective on Home Depot from $430.00 to $407.00 and set a “buy” rating for the company in a report on Wednesday, December 10th. Twenty-one equities research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price 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.