Advisors Capital Management LLC Invests $57.89 Million in The Home Depot, Inc. $HD

Key Points

• Advisors Capital Management initiated a $57.89 million position in Home Depot by purchasing 164,134 shares during the second quarter. Institutional investors collectively own 70.86% of the company.
• Home Depot exceeded quarterly expectations, reporting $4.92 in EPS and $47.86 billion in revenue, with revenue up 5.7% year over year. The company also declared a quarterly dividend of $2.33 per share, representing a 2.8% annualized yield.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and an average price target of $375.54 versus a recent share price of $328.80; however, executives recently sold shares, including the CFO’s roughly $2.09 million transaction.

Advisors Capital Management LLC bought a new stake in The Home Depot, Inc. (NYSE:HD - Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the SEC. The firm bought 164,134 shares of the home improvement retailer's stock, valued at approximately $57,887,000.

Other institutional investors also recently modified their holdings of the company. MJP Associates Inc. ADV acquired a new position in Home Depot during the 2nd quarter worth approximately $1,167,000. PCM Encore LLC bought a new stake in shares of Home Depot during the second quarter worth about $1,530,000. Trillium Asset Management LLC acquired a new position in Home Depot in the 2nd quarter valued at approximately $27,374,000. Altman Advisors Inc. acquired a new stake in Home Depot in the second quarter valued at $1,762,000. Finally, Clay Northam Wealth Management LLC acquired a new stake in shares of Home Depot in the second quarter valued at about $319,000. Institutional investors and hedge funds own 70.86% of the company's stock.

Home Depot Price Performance

Home Depot stock opened at $328.80 on Friday. The Home Depot, Inc. has a 12 month low of $289.10 and a 12 month high of $426.75. The company has a current ratio of 1.08, a quick ratio of 0.31 and a debt-to-equity ratio of 2.64. The business's 50 day simple moving average is $341.07 and its 200 day simple moving average is $338.82. The company has a market cap of $328.04 billion, a price-to-earnings ratio of 23.01, a PEG ratio of 3.69 and a beta of 0.95.

Home Depot (NYSE:HD - Get Free Report) last released its earnings results on Tuesday, August 18th. The home improvement retailer reported $4.92 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.73 by $0.19. Home Depot had a return on equity of 106.42% and a net margin of 8.41%.The business had revenue of $47.86 billion during the quarter, compared to the consensus estimate of $47.24 billion. During the same period last year, the business posted $4.68 earnings per share. The business's revenue for the quarter was up 5.7% on a year-over-year basis. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. Sell-side analysts forecast that The Home Depot, Inc. will post 14.99 EPS for the current year.

Home Depot Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 17th. Stockholders of record on Thursday, September 3rd will be given a $2.33 dividend. The ex-dividend date is Thursday, September 3rd. This represents a $9.32 annualized dividend and a dividend yield of 2.8%. Home Depot's payout ratio is 65.22%.

More Home Depot News

Here are the key news stories impacting Home Depot this week:

• Positive Sentiment: Home Depot expanded its Magic Apron AI assistant to all U.S. stores. The tool provides localized product information, project guidance and store navigation through text, voice, images and multiple languages. With millions of questions handled monthly, the rollout could improve customer service, associate productivity and sales conversion. The Home Depot Expands Magic Apron to Deliver Personalized and Localized In-Store Guidance
• Positive Sentiment: Recent analysis argues that Home Depot is showing its clearest turnaround signal in roughly two years. Analysts remain generally constructive, while the company’s recent quarterly results showed revenue growth and earnings above expectations, potentially positioning HD to benefit disproportionately when housing and remodeling demand recover. Prediction: Home Depot’s Turnaround Could Be Bigger Than Investors Expect
• Positive Sentiment: A comparison with Lowe’s suggests Home Depot may be the stronger housing-recovery play, with its scale, professional-customer exposure and strategic execution differentiating it in a frozen housing market. Home Depot vs. Lowe’s: One Housing Recovery Play Stands Out
• Neutral Sentiment: Home Depot beat second-quarter estimates, but coverage highlights a $685 million tariff refund. Because the refund may be a one-time benefit rather than recurring operating improvement, investors may be discounting part of the earnings upside. Home Depot Beat Q2 Estimates. What Did the $685M Tariff Refund Change?
• Negative Sentiment: Executive Vice President Michael F. Rowe sold 710 shares worth approximately $239,100, reducing his direct holdings by 9.4%. The transaction is relatively small and may be routine, but insider selling can add modest sentiment pressure. SEC Insider Transaction Filing

Insider Transactions at Home Depot

In other news, CFO Richard V. Mcphail sold 5,989 shares of Home Depot stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $348.40, for a total transaction of $2,086,567.60. Following the completion of the sale, the chief financial officer owned 48,104 shares in the company, valued at approximately $16,759,433.60. This trade represents a 11.07% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Michael F. Rowe sold 710 shares of the firm's stock in a transaction that occurred on Wednesday, August 26th. The shares were sold at an average price of $336.76, for a total transaction of $239,099.60. Following the completion of the sale, the executive vice president directly owned 6,838 shares in the company, valued at $2,302,764.88. This represents a 9.41% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.08% of the stock is owned by insiders.

Wall Street Analyst Weigh In

HD has been the subject of several recent analyst reports. Robert W. Baird decreased their price objective on shares of Home Depot from $430.00 to $380.00 and set an "outperform" rating for the company in a research report on Wednesday, May 20th. Citigroup cut their target price on shares of Home Depot from $450.00 to $400.00 and set a "buy" rating on the stock in a research note on Tuesday, May 12th. Royal Bank Of Canada reduced their price target on shares of Home Depot from $343.00 to $342.00 and set a "sector perform" rating for the company in a report on Wednesday, August 19th. Evercore decreased their price target on shares of Home Depot from $415.00 to $400.00 and set an "outperform" rating for the company in a research note on Wednesday, May 20th. Finally, UBS Group dropped their price objective on shares of Home Depot from $430.00 to $420.00 and set a "buy" rating on the stock in a report on Wednesday, August 19th. Eighteen equities research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Home Depot currently has an average rating of "Moderate Buy" and an average target price of $375.54.

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.

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