Bessemer Group Inc. Trims Position in The Home Depot, Inc. $HD

Key Points

• Bessemer Group Inc. reduced its Home Depot stake by 4.5% in the fourth quarter, though it still held 551,414 shares valued at about $189.7 million. Overall, institutional investors continue to own a large majority of the stock.
• Home Depot’s CFO Richard V. Mcphail sold 2,550 shares in March, a transaction worth about $940,670, trimming his direct holdings by 5.41%. Insiders now own just 0.08% of the company.
• The company recently reported quarterly EPS of $2.72, beating estimates, while revenue came in slightly above expectations at $38.2 billion. Home Depot also raised its quarterly dividend to $2.33 per share, and analysts still rate the stock a Moderate Buy despite some lowered price targets.

Bessemer Group Inc. cut its position in The Home Depot, Inc. (NYSE:HD - Free Report) by 4.5% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 551,414 shares of the home improvement retailer's stock after selling 25,774 shares during the period. Bessemer Group Inc. owned about 0.06% of Home Depot worth $189,742,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also recently modified their holdings of HD. Parvin Asset Management LLC increased its stake in shares of Home Depot by 110.0% in the third quarter. Parvin Asset Management LLC now owns 63 shares of the home improvement retailer's stock worth $26,000 after purchasing an additional 33 shares in the last quarter. Key Capital Management INC purchased a new stake in shares of Home Depot in the fourth quarter worth $28,000. Financially Speaking Inc purchased a new stake in shares of Home Depot in the third quarter worth $31,000. Navalign LLC purchased a new stake in shares of Home Depot in the fourth quarter worth $31,000. Finally, Disciplined Equity Management Inc. purchased a new stake in shares of Home Depot in the fourth quarter worth $34,000. 70.86% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In related news, CFO Richard V. Mcphail sold 2,550 shares of the firm's stock in a transaction 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 completion of 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 transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 0.08% of the company's stock.

Home Depot Stock Performance

HD opened at $304.46 on Friday. The stock has a market capitalization of $303.25 billion, a price-to-earnings ratio of 21.40, a PEG ratio of 3.49 and a beta of 1.00. The company has a fifty day moving average of $333.21 and a 200 day moving average of $354.79. The Home Depot, Inc. has a fifty-two week low of $299.27 and a fifty-two week high of $426.75. The company has a debt-to-equity ratio of 3.62, a quick ratio of 0.26 and a current ratio of 1.06.

Home Depot (NYSE:HD - Get Free Report) last posted its earnings results on Tuesday, February 24th. The home improvement retailer reported $2.72 earnings per share for the quarter, beating the consensus estimate of $2.52 by $0.20. The company had revenue of $38.20 billion during the quarter, compared to analysts' expectations of $38.01 billion. Home Depot had a net margin of 8.60% and a return on equity of 134.32%. Home Depot's quarterly revenue was down 3.8% on a year-over-year basis. During the same period last year, the company posted $3.13 earnings per share. Home Depot has set its FY 2026 guidance at 14.230-14.799 EPS. As a group, sell-side analysts forecast that The Home Depot, Inc. will post 15.03 earnings per share for the current fiscal year.

Home Depot Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, March 26th. Investors of record on Thursday, March 12th were paid a dividend of $2.33 per share. The ex-dividend date of this dividend was Thursday, March 12th. This is a positive change from Home Depot's previous quarterly dividend of $2.30. This represents a $9.32 annualized dividend and a yield of 3.1%. Home Depot's dividend payout ratio is 65.50%.

Key Headlines Impacting Home Depot

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

• Positive Sentiment: Telsey Advisory reiterated its Buy rating on Home Depot, adding to the view that the company remains a quality name ahead of earnings. Telsey Advisory Sticks to Their Buy Rating for Home Depot (HD)
• Positive Sentiment: Several market comments pointed to improving spring demand, stronger Pro customer activity, and continued big-ticket sales momentum, which could help offset housing-market weakness. Analyst Reaffirms Buy on Home Depot, Citing Resilient Spring Demand, Pro Strength, and Big-Ticket Sales Momentum
• Positive Sentiment: Mortgage rates moved to five-week highs, but reports noted that homebuyers are still returning, which is a constructive sign for home-improvement demand and HD’s long-term sales outlook. Mortgage Rates Hit Five-Week Highs—But Homebuyers Are Returning, Boosting Home Depot, Lowe's And Other Builders
• Neutral Sentiment: Investors are focused on Home Depot’s upcoming first-quarter earnings on May 19, with analysts watching whether sales growth, Pro demand, and digital tools can offset continued pressure from the weak housing market. Home Depot to Post Q1 Earnings: Is Now the Right Time to Invest?
• Neutral Sentiment: Wall Street cut some price targets, including Sanford C. Bernstein and Truist, but both firms kept constructive ratings overall, suggesting valuation concerns rather than a major change in the long-term outlook. Price target updates on Home Depot
• Negative Sentiment: Home Depot has been hit by a pre-earnings pullback as investors worry that housing turnover remains too weak to drive a near-term acceleration in DIY spending. Blue-Chip Stock Seeing a Pre-Earnings Pullback
• Negative Sentiment: Broader housing-sector weakness continues to weigh on sentiment, with analysts noting that Home Depot’s business is sensitive to slower housing turnover and higher rates. Jim Cramer on Home Depot: “It Needs Housing Turnover”

Analysts Set New Price Targets

HD has been the subject of a number of analyst reports. Citigroup reduced their price objective on shares of Home Depot from $450.00 to $400.00 and set a "buy" rating for the company in a research note on Tuesday. Gordon Haskett reduced their price objective on shares of Home Depot from $395.00 to $330.00 in a research note on Friday, May 8th. Wolfe Research increased their price objective on shares of Home Depot from $413.00 to $414.00 and gave the stock an "outperform" rating in a research note on Wednesday, February 25th. Piper Sandler reduced their price objective on shares of Home Depot from $441.00 to $422.00 and set an "overweight" rating for the company in a research note on Monday, February 23rd. Finally, Jefferies Financial Group increased their price objective on shares of Home Depot from $424.00 to $454.00 and gave the stock a "buy" rating in a research note on Tuesday, February 24th. Twenty investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Home Depot presently has an average rating of "Moderate Buy" and an average price target of $405.69.

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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