Home Depot's Short Interest Rises 31.82% Amid Market Sentiment Shift

Home Depot's short percent of float has risen 31.82% since its last report, with 11.51 million shares sold short, which is 1.16% of all regular shares available for trading. The average trader would need 2.51 days to cover their short positions. This increase in short interest may indicate that investors have become more bearish on the stock. However, an increase in short interest can also be bullish, as it may signal that investors are positioning themselves to profit from a potential price decrease.

Home Depot's (NYSE: HD) short interest has increased significantly, with the percentage of shares sold short rising 31.82% since its last report. According to recent data, 11.51 million shares are currently sold short, representing 1.16% of all regular shares available for trading. This rise in short interest suggests that investors are positioning themselves to profit from a potential decrease in the stock's price.

The average trader would need approximately 2.51 days to cover their short positions based on the company's trading volume. This metric indicates the ease with which short sellers could potentially cover their positions if the stock price were to rise. While an increase in short interest is often seen as a bearish signal, it can also be a bullish indicator in certain contexts.

Comparing Home Depot's short interest with its peers, the company has a lower short interest percentage of 1.16% compared to the average of 5.18% among its peers [1]. This lower short interest suggests that Home Depot may be less targeted by short sellers compared to other companies in its industry.

Additionally, several institutional investors and hedge funds have increased their stakes in Home Depot during the first quarter of 2025. Pictet Asset Management Holding SA, for instance, grew its stake by 18.1% to own 1,240,090 shares of the company's stock [2]. This increase in institutional ownership may provide some support for the stock's price.

Home Depot's recent earnings report showed a mixed performance. The company reported earnings per share (EPS) of $3.56, missing analysts' consensus estimates by $0.03. Despite this, the company's revenue increased by 9.4% year-over-year, indicating strong sales growth. Home Depot also recently announced a quarterly dividend of $2.30 per share, representing a $9.20 annualized dividend and a yield of 2.57% [2].

Analyst ratings for Home Depot have been mixed, with some analysts upgrading their price targets and others maintaining a hold rating. Truist Financial, for example, lifted its price target on Home Depot to $417.00 and gave the stock a "buy" rating [2]. Meanwhile, Royal Bank of Canada reduced its price target to $399.00 and set a "sector perform" rating for the company [2].

In conclusion, while Home Depot's increased short interest may indicate bearish sentiment among some investors, it is essential to consider the overall context, including the company's recent earnings performance and institutional ownership. Investors should closely monitor the company's performance and market sentiment to make informed investment decisions.

References:
[1] https://www.benzinga.com/insights/short-sellers/25/07/46492924/what-does-the-market-think-about-home-depot
[2] https://www.marketbeat.com/instant-alerts/filing-pictet-asset-management-holding-sa-has-45446-million-stock-position-in-the-home-depot-inc-nysehd-2025-07-18/