Alyeska Investment Group L.P. Sells 496,379 Shares of The Home Depot, Inc. $HD

Key Points

• Alyeska Investment Group cut its Home Depot position by 66.4% in the second quarter, selling 496,379 shares and retaining 251,645 shares valued at approximately $88.75 million.
• Despite Alyeska’s reduction, several other institutional investors increased their holdings, and institutions collectively own 70.86% of Home Depot. Analysts maintain a “Moderate Buy” consensus with an average price target of $375.54.
• Home Depot exceeded quarterly earnings and revenue expectations, reporting $4.92 in EPS and $47.86 billion in revenue, up 5.7% year over year. The company also declared a quarterly dividend of $2.33 per share, representing a 2.9% annualized yield.

Alyeska Investment Group L.P. trimmed its position in shares of The Home Depot, Inc. (NYSE:HD - Free Report) by 66.4% in the 2nd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 251,645 shares of the home improvement retailer's stock after selling 496,379 shares during the quarter. Alyeska Investment Group L.P.'s holdings in Home Depot were worth $88,750,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds have also bought and sold shares of the company. Provident Trust Co. lifted its position in shares of Home Depot by 9.9% during the second quarter. Provident Trust Co. now owns 831,190 shares of the home improvement retailer's stock worth $293,144,000 after purchasing an additional 74,910 shares during the last quarter. Northwestern Mutual Wealth Management Co. lifted its holdings in Home Depot by 5.7% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 336,110 shares of the home improvement retailer's stock valued at $118,539,000 after buying an additional 18,005 shares in the last quarter. Rational Advisors Inc. lifted its holdings in Home Depot by 13.9% during the 2nd quarter. Rational Advisors Inc. now owns 369 shares of the home improvement retailer's stock valued at $130,000 after buying an additional 45 shares in the last quarter. Hennessy Advisors Inc. boosted its position in Home Depot by 12.1% in the 2nd quarter. Hennessy Advisors Inc. now owns 28,640 shares of the home improvement retailer's stock valued at $10,101,000 after buying an additional 3,090 shares during the period. Finally, Spinnaker Trust grew its stake in Home Depot by 0.7% in the 2nd quarter. Spinnaker Trust now owns 43,155 shares of the home improvement retailer's stock worth $15,220,000 after acquiring an additional 282 shares in the last quarter. Institutional investors own 70.86% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts have commented on the company. Mizuho raised their price objective on Home Depot from $385.00 to $390.00 and gave the stock an "outperform" rating in a report on Wednesday, August 19th. TD Cowen reissued a "buy" rating on shares of Home Depot in a research report on Monday, August 10th. Wolfe Research downgraded Home Depot from an "outperform" rating to a "peer perform" rating in a report on Tuesday, June 23rd. Oppenheimer lowered their price objective on shares of Home Depot from $405.00 to $310.00 and set a "market perform" rating for the company in a research note on Monday, May 18th. Finally, Argus reiterated a "buy" rating and set a $400.00 target price on shares of Home Depot in a report on Wednesday, August 19th. Eighteen investment analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, Home Depot has a consensus rating of "Moderate Buy" and a consensus target price of $375.54.

Home Depot Stock Performance

Shares of Home Depot stock opened at $317.79 on Friday. The company has a market capitalization of $317.06 billion, a PE ratio of 22.24, a P/E/G ratio of 3.51 and a beta of 0.95. The company has a debt-to-equity ratio of 2.64, a quick ratio of 0.31 and a current ratio of 1.08. The company has a 50-day simple moving average of $339.90 and a two-hundred day simple moving average of $336.51. The Home Depot, Inc. has a one year low of $289.10 and a one year high of $426.75.

Home Depot (NYSE:HD - Get Free Report) last released its quarterly earnings results on Tuesday, August 18th. The home improvement retailer reported $4.92 earnings per share for the quarter, beating analysts' consensus estimates of $4.73 by $0.19. Home Depot had a net margin of 8.41% and a return on equity of 106.42%. The business had revenue of $47.86 billion for the quarter, compared to analysts' expectations of $47.24 billion. During the same period last year, the business earned $4.68 EPS. The company's revenue was up 5.7% compared to the same quarter last year. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. Research analysts expect that The Home Depot, Inc. will post 15 EPS for the current fiscal year.

Home Depot Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 17th. Stockholders of record on Thursday, September 3rd will be issued a dividend of $2.33 per share. This represents a $9.32 annualized dividend and a dividend yield of 2.9%. The ex-dividend date is Thursday, September 3rd. Home Depot's dividend payout ratio is currently 65.22%.

Home Depot News Roundup

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

• Positive Sentiment: Home Depot’s professional-customer growth and technology investments could support a recovery. The company has expanded its AI-powered Magic Apron tools across U.S. stores, while one analysis argues the stock may be about 15% undervalued if its Pro business gains momentum. Home Depot Could Be 15% Undervalued on Its Pro Growth Narrative
• Neutral Sentiment: Zacks Research raised its fiscal 2027 EPS forecast slightly to $15.03 from $14.95, broadly matching the current consensus estimate of $15.00. However, this isolated increase was accompanied by several reductions to later quarterly and annual forecasts. Home Depot Analyst Estimates
• Neutral Sentiment: Recent operating results remain a support for the shares: Home Depot exceeded quarterly earnings and revenue expectations, with revenue up 5.7% year over year. The key concern is whether that growth can accelerate amid a weak housing environment.
• Negative Sentiment: Mortgage rates have reached a one-year high following a global bond sell-off. Higher borrowing costs can discourage home purchases, renovations and moves, limiting demand for big-ticket projects at Home Depot and Lowe’s. Mortgage Rates Just Hit a One-Year High
• Negative Sentiment: Homeowners remain locked into older, cheaper mortgages, and the probability of moving within 12 months has fallen to a record-low 13.5%. Home Depot reportedly sees “no sign” of a housing turnaround, pressuring near-term sales prospects. Americans Stop Moving as Mortgage Lock-In Persists
• Negative Sentiment: Analysts have cut multiple future EPS estimates, including fiscal 2028 EPS to $16.05 from $16.23 and fiscal 2029 EPS to $17.41 from $17.62. The revisions suggest slower expected growth and weigh on valuation. The Gap Between HD Stock and Its Own Numbers
• Negative Sentiment: Comparisons with Costco and Lowe’s highlight concerns about Home Depot’s relative performance, dividend coverage and competitive position. Bearish options activity, including a proposed bear put spread, further reflects expectations that the stock could remain under pressure. Home Depot Bear Put Spread Could Return 181 Percent

Insider Transactions at Home Depot

In related news, EVP Teresa Roseborough sold 2,455 shares of the company's stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $328.77, for a total transaction of $807,130.35. Following the transaction, the executive vice president directly owned 14,061 shares of the company's stock, valued at $4,622,834.97. This represents a 14.86% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, EVP Michael F. Rowe sold 710 shares of the stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $336.76, for a total value of $239,099.60. Following the completion of the sale, the executive vice president owned 6,838 shares of the company's stock, valued at approximately $2,302,764.88. This trade represents a 9.41% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 9,154 shares of company stock valued at $3,132,798 in the last quarter. 0.08% of the stock is currently owned by corporate insiders.

About Home Depot

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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