Gregory Brenneman, a director at Home Depot (HD), recently bought 2,884 shares. The buy increased his stake by 5%, and came to a total cost of $999,967.
This is the first insider buy at Home Depot over the past two years. Company executives have been regular sellers of shares, with most of those sales occurring following the exercise of stock options. The largest sale occurred when the company CEO sold 25% of his position for over $13 million in early 2024.
Overall, Home Depot insiders own 0.1% of shares.
The home improvement retailer is down 10% over the past year. A slow real estate market and years of high inflation have weighed on consumer spending on homes.
However, with interest and mortgage rates declining, there could be an uptick in the quarters ahead.
Home Depot is an industry leader, with shares fairly valued at 23 times forward earnings. And even in a tough consumer and housing market, revenues rose by 14% over the past year.
Action to take: Home Depot shares will likely never get exceptionally cheap, and investors should use pullbacks like the recent market one to accumulate shares at a reasonable price.
Home Depot also pays a 2.6% dividend at current prices, and the company has a history of increasing its payout over time.
For traders, shares could trend higher in the months ahead. The June $390 calls, last trading for about $7.75, could see mid-double-digit returns from further gains in shares here.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.
