Bank OZK Makes New Investment in The Home Depot, Inc. $HD

Key Points

• Bank OZK initiated a Home Depot position in the second quarter by purchasing 4,159 shares valued at approximately $1.47 million. Institutional investors collectively own 70.86% of Home Depot.
• Home Depot’s latest quarterly results beat expectations, with EPS of $4.92 and revenue of $47.86 billion, up 5.7% year over year. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $375.54.
• Despite strong results and a 2.8%–2.9% dividend yield, weak DIY demand and elevated mortgage rates continue to weigh on major renovation projects; recent insider sales also modestly affected sentiment.

Bank OZK bought a new position in shares of The Home Depot, Inc. (NYSE:HD - Free Report) in the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor bought 4,159 shares of the home improvement retailer's stock, valued at approximately $1,467,000.

A number of other institutional investors also recently modified their holdings of HD. Bank of Nova Scotia acquired a new position in Home Depot in the second quarter worth about $118,723,000. Gator Capital Management LLC acquired a new stake in Home Depot during the fourth quarter valued at approximately $3,693,000. AFT Forsyth & Company Inc. acquired a new stake in Home Depot during the second quarter valued at approximately $1,896,000. King Luther Capital Management Corp grew its stake in shares of 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 valued at $426,848,000 after purchasing an additional 7,180 shares during the period. Finally, E Fund Management Co. Ltd. acquired a new position in shares of Home Depot in the 2nd quarter worth approximately $3,915,000. Institutional investors own 70.86% of the company's stock.

Key Home Depot News

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

• Positive Sentiment: Home Depot is expanding its AI-powered Magic Apron tools across all U.S. stores. The technology provides localized product searches and project assistance, potentially improving customer engagement and supporting the company’s “Pro” growth strategy. Some analysis estimates the stock could be roughly 15% undervalued if that growth narrative gains traction. Home Depot Could Be 15% Undervalued On Its Pro Growth Narrative
• Positive Sentiment: The retailer’s latest quarterly results exceeded expectations, with earnings of $4.92 per share versus the $4.73 consensus and revenue of $47.86 billion, up 5.7% year over year. Analysts maintain a “Moderate Buy” consensus rating and an average price target above the current trading level.
• Positive Sentiment: Home Depot is scheduled to pay a quarterly dividend of $2.33 per share on September 17 to shareholders of record on September 3. The annualized dividend is $9.32, representing a yield of approximately 2.8%.
• Neutral Sentiment: Chief Financial Officer Richard McPhail and merchandising executive Billy Bastek will present at the Goldman Sachs Global Consumer and Retail Conference on September 15. Investors may look for updated commentary on demand, housing trends, and the professional business. The Home Depot to Present at the Goldman Sachs Global Consumer and Retail Conference
• Negative Sentiment: High mortgage rates continue to discourage homeowners from moving, with the probability of changing residences reaching a record-low 13.5%. Home Depot reportedly sees “no sign” of a housing-market turnaround, which weighs on renovation and big-ticket project demand. Americans Stop Moving as Mortgage Lock-In Persists
• Negative Sentiment: DIY demand remains weak as consumers defer larger home-improvement projects. Digital sales, broader category gains, and higher big-ticket sales provide some offset, but continued consumer caution is a near-term concern. Home Depot Faces Weak DIY Demand
• Negative Sentiment: Executive Vice President Teresa Wynn Roseborough sold 2,455 shares valued at approximately $807,000, reducing her direct ownership by 14.86%. While a single insider sale does not establish a trend, it may add modest pressure to investor sentiment. Teresa Wynn Roseborough Sells Shares of Home Depot

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on the stock. Argus reiterated a "buy" rating and issued a $400.00 target price on shares of Home Depot in a research note on Wednesday, August 19th. Truist Financial boosted their price objective on Home Depot from $369.00 to $373.00 and gave the stock a "buy" rating in a research note on Wednesday, August 19th. Wall Street Zen upgraded Home Depot from a "sell" rating to a "hold" rating in a research note on Tuesday, June 2nd. Mizuho lifted their price target on Home Depot from $385.00 to $390.00 and gave the company an "outperform" rating in a report on Wednesday, August 19th. Finally, The Goldman Sachs Group decreased their price objective on shares of Home Depot from $409.00 to $390.00 and set a "buy" rating on the stock in a report on Wednesday, May 20th. Eighteen research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Home Depot currently has an average rating of "Moderate Buy" and an average price target of $375.54.

Insider Buying and Selling

In related news, EVP Michael F. Rowe sold 710 shares of Home Depot stock in a transaction on Wednesday, August 26th. The stock was 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 of the company's stock, valued at $2,302,764.88. The trade was a 9.41% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Teresa Wynn Roseborough sold 2,455 shares of the stock in a transaction dated Friday, August 28th. The shares were sold at an average price of $328.77, for a total value of $807,130.35. Following the completion of the transaction, the executive vice president directly owned 14,061 shares in the company, valued at $4,622,834.97. The trade was a 14.86% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 9,154 shares of company stock valued at $3,132,798 over the last three months. Company insiders own 0.08% of the company's stock.

Home Depot Price Performance

Home Depot stock opened at $319.70 on Wednesday. The business's 50-day simple moving average is $340.90 and its 200 day simple moving average is $337.53. The company has a quick ratio of 0.31, a current ratio of 1.08 and a debt-to-equity ratio of 2.64. The stock has a market cap of $318.96 billion, a price-to-earnings ratio of 22.37, a P/E/G ratio of 3.61 and a beta of 0.96. The Home Depot, Inc. has a 12-month low of $289.10 and a 12-month high of $426.75.

Home Depot (NYSE:HD - Get Free Report) last issued its earnings results on Tuesday, August 18th. The home improvement retailer reported $4.92 earnings per share (EPS) for the quarter, beating 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 company had revenue of $47.86 billion for the quarter, compared to analyst estimates of $47.24 billion. During the same quarter last year, the firm earned $4.68 EPS. The company'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. As a group, research analysts anticipate that The Home Depot, Inc. will post 15 earnings per share for the current year.

Home Depot Announces Dividend

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. 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 (DPR) is currently 65.22%.

Home Depot 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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