Making a noteworthy insider sell on May 29, Teresa Wynn Roseborough, EVP at Home Depot HD, is reported in the latest SEC filing.
What Happened: After conducting a thorough analysis, Roseborough sold 5,406 shares of Home Depot. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total transaction value is $1,996,327.
In the Friday’s morning session, Home Depot‘s shares are currently trading at $367.62, experiencing a down of 0.18%.
Discovering Home Depot: A Closer Look
Home Depot is the world’s largest home improvement specialty retailer, operating 2,350 warehouse-format stores offering more than 30,000 products in store and 1 million products online in the US, Canada, and Mexico. Its stores offer building materials, home improvement products, lawn and garden products, and decor products and provide various services, including home improvement installation services and tool and equipment rentals. The acquisition of Interline Brands in 2015 allowed Home Depot to enter the MRO business, which has been expanded through the tie-up with HD Supply (2020). The additions of the Company Store brought textiles to the lineup, and the 2024 tie-up with SRS will help grow professional demand in roofing, pool and landscaping projects.
Unraveling the Financial Story of Home Depot
Positive Revenue Trend: Examining Home Depot’s financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 9.44% as of 30 April, 2025, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Discretionary sector.
Exploring Profitability:
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Gross Margin: The company shows a low gross margin of 33.77%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.
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Earnings per Share (EPS): Home Depot’s EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 3.46.
Debt Management: Home Depot’s debt-to-equity ratio stands notably higher than the industry average, reaching 7.7. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
Valuation Overview:
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Price to Earnings (P/E) Ratio: Home Depot’s P/E ratio of 25.0 is below the industry average, suggesting the stock may be undervalued.
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Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 2.25 suggests overvaluation in the eyes of investors, considering sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry benchmarks at 16.61, Home Depot presents an attractive value opportunity.
Market Capitalization Analysis: The company’s market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.
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The Impact of Insider Transactions on Investments
Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.
When discussing legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Essential Transaction Codes Unveiled
Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.
Check Out The Full List Of Home Depot’s Insider Trades.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
