Baker Avenue Asset Management LP Raises Stock Position in The Home Depot, Inc. $HD

Key Points

• Baker Avenue Asset Management increased its Home Depot stake by 11.5% in the fourth quarter, adding 3,627 shares to bring its total to 35,098 shares worth about $12.1 million.
• Home Depot reported quarterly earnings of $3.43 per share, slightly beating estimates, while revenue of $41.77 billion also came in above expectations and rose 4.8% year over year.
• The company declared a quarterly dividend of $2.33 per share, payable June 18, and several analysts maintained generally positive views, with the stock carrying a Moderate Buy consensus rating.

Baker Avenue Asset Management LP boosted its holdings in The Home Depot, Inc. (NYSE:HD - Free Report) by 11.5% in the fourth quarter, according to its most recent filing with the SEC. The institutional investor owned 35,098 shares of the home improvement retailer's stock after buying an additional 3,627 shares during the period. Baker Avenue Asset Management LP's holdings in Home Depot were worth $12,077,000 as of its most recent SEC filing.

Other institutional investors have also bought and sold shares of the company. Silphium Asset Management Ltd lifted its holdings in shares of Home Depot by 77.2% in the 3rd quarter. Silphium Asset Management Ltd now owns 13,544 shares of the home improvement retailer's stock valued at $5,488,000 after acquiring an additional 5,900 shares during the last quarter. Truist Financial Corp raised its position in Home Depot by 0.3% in the 3rd quarter. Truist Financial Corp now owns 1,095,113 shares of the home improvement retailer's stock worth $443,729,000 after purchasing an additional 3,608 shares during the period. Atlantic Union Bankshares Corp raised its position in Home Depot by 59.9% in the 3rd quarter. Atlantic Union Bankshares Corp now owns 107,438 shares of the home improvement retailer's stock worth $43,533,000 after purchasing an additional 40,232 shares during the period. King Luther Capital Management Corp raised its position in Home Depot by 0.6% in the 4th quarter. King Luther Capital Management Corp now owns 1,240,478 shares of the home improvement retailer's stock worth $426,848,000 after purchasing an additional 7,180 shares during the period. Finally, Carnegie Investment Counsel raised its position in Home Depot by 24.8% in the 4th quarter. Carnegie Investment Counsel now owns 108,306 shares of the home improvement retailer's stock worth $37,268,000 after purchasing an additional 21,545 shares during the period. Hedge funds and other institutional investors own 70.86% of the company's stock.

Home Depot Stock Performance

Shares of NYSE:HD opened at $318.27 on Thursday. The firm has a market cap of $317.00 billion, a PE ratio of 22.60, a price-to-earnings-growth ratio of 3.58 and a beta of 1.00. The firm's 50 day simple moving average is $325.37 and its 200-day simple moving average is $350.33. The Home Depot, Inc. has a one year low of $289.10 and a one year high of $426.75. The company has a debt-to-equity ratio of 3.23, a quick ratio of 0.28 and a current ratio of 1.04.

Home Depot (NYSE:HD - Get Free Report) last issued its earnings results on Tuesday, May 19th. The home improvement retailer reported $3.43 EPS for the quarter, topping analysts' consensus estimates of $3.41 by $0.02. The business had revenue of $41.77 billion for the quarter, compared to analyst estimates of $41.59 billion. Home Depot had a net margin of 8.41% and a return on equity of 117.24%. The company's quarterly revenue was up 4.8% compared to the same quarter last year. During the same period last year, the company posted $3.56 earnings per share. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. As a group, equities analysts predict that The Home Depot, Inc. will post 15.02 EPS for the current year.

Home Depot Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, June 18th. Stockholders of record on Thursday, June 4th will be given a dividend of $2.33 per share. The ex-dividend date of this dividend is Thursday, June 4th. This represents a $9.32 dividend on an annualized basis and a dividend yield of 2.9%. Home Depot's dividend payout ratio (DPR) is 66.19%.

Key Headlines Impacting Home Depot

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

• Positive Sentiment: TD Cowen said Home Depot delivered solid execution in a challenging market, and although it trimmed its price target, it reiterated a Buy rating, which can help reinforce confidence in the stock. A Bright Spot in Home Depot’s Earnings
• Positive Sentiment: Home Depot’s latest results showed a modest earnings beat and continued strength in its Pro segment, while U.S. same-store sales posted a sixth straight quarter of growth, supporting the view that demand is stabilizing. Home Depot Sales Recovery And Mingledorff’s Deal Strengthen Pro Growth Story
• Positive Sentiment: Home Depot’s acquisition of Mingledorff’s expands its reach in HVAC distribution and deepens its exposure to professional customers, which investors may see as a long-term growth driver. Home Depot Sales Recovery And Mingledorff’s Deal Strengthen Pro Growth Story

Insider Activity at Home Depot

In other news, CFO Richard V. Mcphail sold 2,550 shares of the firm's stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $368.89, for a total transaction of $940,669.50. Following the transaction, the chief financial officer directly owned 44,566 shares of the company's stock, valued at approximately $16,439,951.74. This trade represents a 5.41% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Company insiders own 0.08% of the company's stock.

Analyst Upgrades and Downgrades

HD has been the topic of a number of recent analyst reports. BNP Paribas Exane reduced their price objective on shares of Home Depot from $348.00 to $325.00 and set a "neutral" rating on the stock in a research report on Tuesday, May 19th. Argus reduced their price objective on shares of Home Depot from $425.00 to $400.00 and set a "buy" rating on the stock in a research report on Thursday, May 21st. TD Cowen reduced their price objective on shares of Home Depot from $450.00 to $375.00 and set a "buy" rating on the stock in a research report on Wednesday, May 20th. Telsey Advisory Group reduced their price objective on shares of Home Depot from $435.00 to $410.00 and set an "outperform" rating on the stock in a research report on Wednesday, May 20th. Finally, Guggenheim reissued a "buy" rating and issued a $425.00 price objective on shares of Home Depot in a research report on Wednesday, May 20th. Twenty analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, Home Depot presently has a consensus rating of "Moderate Buy" and an average target price of $371.39.

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.

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