Bank of Nova Scotia Invests $118.72 Million in The Home Depot, Inc. $HD

Key Points

• Bank of Nova Scotia acquired 336,631 Home Depot shares in the second quarter, valued at approximately $118.72 million. Institutional investors collectively own 70.86% of the company.
• Home Depot reported quarterly revenue of $47.86 billion, up 5.7% year over year, and adjusted earnings of $4.92 per share, exceeding analyst expectations. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $375.54.
• The company declared a quarterly dividend of $2.33 per share, equivalent to $9.32 annually and a 2.8% yield, while executives recently sold shares and CEO Ted Decker’s medical leave adds leadership uncertainty.

Bank of Nova Scotia acquired a new stake in The Home Depot, Inc. (NYSE:HD - Free Report) during the second quarter, according to its most recent Form 13F filing with the SEC. The fund acquired 336,631 shares of the home improvement retailer's stock, valued at approximately $118,723,000.

Several other institutional investors and hedge funds also recently made changes to their positions in HD. BlackRock Inc. acquired a new position in Home Depot in the second quarter valued at approximately $28,771,247,000. Norges Bank acquired a new position in shares of Home Depot during the 4th quarter valued at $4,850,329,000. Bank of New York Mellon Corp acquired a new position in shares of Home Depot during the 2nd quarter valued at $2,777,396,000. Wellington Management Group LLP boosted its stake in Home Depot by 60.8% during the third quarter. Wellington Management Group LLP now owns 10,143,089 shares of the home improvement retailer's stock worth $4,109,878,000 after acquiring an additional 3,836,051 shares in the last quarter. Finally, Cardano Risk Management B.V. boosted its stake in Home Depot by 901.5% during the fourth quarter. Cardano Risk Management B.V. now owns 3,290,540 shares of the home improvement retailer's stock worth $1,132,275,000 after acquiring an additional 2,961,979 shares in the last quarter. Institutional investors own 70.86% of the company's stock.

Analysts Set New Price Targets

Several equities research analysts have weighed in on HD shares. Wall Street Zen raised shares of Home Depot from a "sell" rating to a "hold" rating in a research note on Tuesday, June 2nd. Piper Sandler dropped their price objective on shares of Home Depot from $422.00 to $421.00 and set an "overweight" rating on the stock in a report on Wednesday, May 20th. Mizuho increased their price objective on shares of Home Depot from $385.00 to $390.00 and gave the stock an "outperform" rating in a research report on Wednesday, August 19th. Gordon Haskett raised their target price on Home Depot from $320.00 to $330.00 in a research note on Friday, June 12th. Finally, KeyCorp reaffirmed a "sector weight" rating on shares of Home Depot in a research report on Wednesday, August 19th. Eighteen equities research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Home Depot currently has a consensus rating of "Moderate Buy" and an average price target of $375.54.

Insider Activity at Home Depot

In related news, CFO Richard V. Mcphail sold 5,989 shares of Home Depot stock in a transaction on 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 sale, the chief financial officer directly owned 48,104 shares in the company, valued at approximately $16,759,433.60. This trade represents a 11.07% 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. Also, EVP Michael F. Rowe sold 710 shares of the business's stock in a transaction on Wednesday, August 26th. The stock was sold at an average price of $336.76, for a total value of $239,099.60. Following the completion of the transaction, the executive vice president directly owned 6,838 shares in the company, valued at approximately $2,302,764.88. This represents a 9.41% decrease in their position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.08% of the company's stock.

Home Depot Stock Performance

Shares of HD stock opened at $329.80 on Friday. The firm has a 50-day moving average of $340.97 and a 200-day moving average of $338.75. The company has a market cap of $329.04 billion, a P/E ratio of 23.08, a P/E/G ratio of 3.64 and a beta of 0.95. The company has a debt-to-equity ratio of 2.64, a current ratio of 1.08 and a quick ratio of 0.31. 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, topping the consensus estimate 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 in the previous year, the company earned $4.68 earnings per share. The firm's revenue for the quarter 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. Equities research analysts forecast that The Home Depot, Inc. will post 15 EPS for the current fiscal year.

Home Depot Announces Dividend

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

Key Headlines Impacting Home Depot

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

• Positive Sentiment: Home Depot reported fiscal second-quarter sales of $47.86 billion, up 5.7% year over year and its strongest comparable-sales growth since 2022. Adjusted earnings of $4.92 per share exceeded the $4.73 analyst consensus, reinforcing the view that the retailer’s turnaround is gaining traction. The Home Depot Posts Record Sales Growth Amid CEO Leave
• Positive Sentiment: The company expanded its Magic Apron AI shopping assistant to every U.S. store. The tool provides localized product information, project guidance and store navigation through text, voice, images and multiple languages. Its potential to improve customer service, employee productivity and conversion rates supports the long-term growth narrative. The Home Depot Expands Magic Apron
• Neutral Sentiment: Analysts and recent commentary see significant upside if housing and remodeling demand recover, with Home Depot’s scale and professional-customer base viewed as competitive advantages. However, the stock remains below its 50-day and 200-day moving averages, indicating that investors have not fully embraced the turnaround thesis. Home Depot Turnaround Could Be Bigger Than Investors Expect
• Neutral Sentiment: Although Home Depot beat quarterly estimates, a reported $685 million tariff refund may have boosted results. Investors could discount part of the earnings strength if the benefit is viewed as nonrecurring. Home Depot Beat Q2 Estimates
• Negative Sentiment: CEO Ted Decker is on temporary medical leave, creating uncertainty around leadership even as operating performance improves. Separately, EVP Michael Rowe sold 710 shares valued at approximately $239,100, a relatively small transaction but a modest negative sentiment signal. Home Depot EVP Michael Rowe Sells Shares

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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