Canada Pension Plan Investment Board Purchases New Holdings in The Home Depot, Inc. $HD

Key Points

• Canada Pension Plan Investment Board acquired 2.07 million Home Depot shares in the second quarter, worth approximately $728.5 million and representing about 0.21% of the company. Institutional investors and hedge funds collectively own 70.86% of HD.
• Home Depot exceeded quarterly expectations with $4.92 in adjusted EPS and $47.86 billion in revenue, while revenue rose 5.7% year over year. The company declared a quarterly dividend of $2.33, equivalent to a 2.8% annualized yield.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $375.54 versus the reported share price of $328.52; however, company insiders sold 9,154 shares worth about $3.13 million over the past three months.

Canada Pension Plan Investment Board acquired a new stake in shares of The Home Depot, Inc. (NYSE:HD - Free Report) in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor acquired 2,065,632 shares of the home improvement retailer's stock, valued at approximately $728,507,000. Canada Pension Plan Investment Board owned about 0.21% of Home Depot as of its most recent SEC filing.

A number of other hedge funds also recently added to or reduced their stakes in HD. Curio Wealth LLC lifted its holdings in shares of Home Depot by 13.5% during the fourth quarter. Curio Wealth LLC now owns 218 shares of the home improvement retailer's stock worth $76,000 after purchasing an additional 26 shares during the period. Moneco Advisors LLC increased its stake in Home Depot by 0.3% in the 4th quarter. Moneco Advisors LLC now owns 8,743 shares of the home improvement retailer's stock valued at $3,008,000 after buying an additional 27 shares during the period. Noesis Capital Mangement Corp raised its position in Home Depot by 1.5% during the 4th quarter. Noesis Capital Mangement Corp now owns 1,770 shares of the home improvement retailer's stock worth $609,000 after buying an additional 27 shares during the last quarter. Eubel Brady & Suttman Asset Management Inc. raised its position in Home Depot by 1.3% during the 4th quarter. Eubel Brady & Suttman Asset Management Inc. now owns 2,130 shares of the home improvement retailer's stock worth $733,000 after buying an additional 27 shares during the last quarter. Finally, Mill Capital Management LLC lifted its stake in shares of Home Depot by 0.4% in the 4th quarter. Mill Capital Management LLC now owns 7,377 shares of the home improvement retailer's stock worth $2,538,000 after acquiring an additional 27 shares during the period. 70.86% of the stock is owned by institutional investors and hedge funds.

Home Depot Trading Down 0.5%

Shares of Home Depot stock opened at $328.52 on Tuesday. The Home Depot, Inc. has a 12-month low of $289.10 and a 12-month high of $426.75. The company has a current ratio of 1.08, a quick ratio of 0.31 and a debt-to-equity ratio of 2.64. The stock has a market cap of $327.76 billion, a PE ratio of 22.99, a price-to-earnings-growth ratio of 3.64 and a beta of 0.95. The company has a 50-day moving average of $341.00 and a two-hundred day moving average of $338.03.

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

Home Depot Announces Dividend

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

Wall Street Analyst Weigh In

HD has been the topic of several analyst reports. DA Davidson reaffirmed a "buy" rating and issued a $377.00 target price on shares of Home Depot in a report on Wednesday, August 19th. Guggenheim restated a "buy" rating and issued a $425.00 price objective on shares of Home Depot in a research report on Wednesday, August 19th. Robert W. Baird lowered their price objective on Home Depot from $430.00 to $380.00 and set an "outperform" rating on the stock in a report on Wednesday, May 20th. JPMorgan Chase & Co. dropped their target price on Home Depot from $423.00 to $396.00 and set an "overweight" rating on the stock in a research report on Wednesday, May 20th. Finally, Bank of America assumed coverage on Home Depot in a research note on Tuesday, May 5th. They set a "buy" rating and a $374.00 target price for the company. Eighteen equities research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $375.54.

Insider Activity at Home Depot

In other news, CFO Richard V. Mcphail sold 5,989 shares of the business's stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $348.40, for a total value of $2,086,567.60. Following the completion of the transaction, the chief financial officer directly owned 48,104 shares of the company's stock, valued at $16,759,433.60. The trade was a 11.07% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, EVP Teresa Wynn Roseborough sold 2,455 shares of the firm'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 sale, the executive vice president directly owned 14,061 shares in the company, valued at $4,622,834.97. This represents a 14.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 9,154 shares of company stock valued at $3,132,798. Insiders own 0.08% of the company's stock.

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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