Insiders At Home Depot Sold US$4.5m In Stock, Alluding To Potential Weakness

The fact that multiple The Home Depot, Inc. (NYSE:HD) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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Home Depot Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Executive VP, Teresa Roseborough, sold US$2.0m worth of shares at a price of US$369 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$395. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 24% of Teresa Roseborough's holding.

Over the last year we saw more insider selling of Home Depot shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Home Depot NYSE:HD Insider Trading Volume October 3rd 2025

If you are like me, then you will not want to miss this freelist of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insiders At Home Depot Have Sold Stock Recently

The last three months saw significant insider selling at Home Depot. Specifically, insiders ditched US$1.2m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Home Depot insiders own about US$227m worth of shares (which is 0.06% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

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What Might The Insider Transactions At Home Depot Tell Us?

Insiders haven't bought Home Depot stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Home Depot. While conducting our analysis, we found that Home Depot has 2 warning signs and it would be unwise to ignore these.

But note: Home Depot may not be the best stock to buy. So take a peek at this freelist of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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