Ceredex Value Advisors LLC Acquires Shares of 78,862 The Home Depot, Inc. $HD

Key Points

• Ceredex Value Advisors acquired 78,862 Home Depot shares worth approximately $27.8 million in the second quarter. Hedge funds and institutional investors collectively own 70.86% of HD.
• Home Depot exceeded quarterly expectations with $4.92 earnings per share and $47.86 billion in revenue, up 5.7% year over year. The company also declared a quarterly dividend of $2.33 per share, representing a 2.8% yield.
• Analysts maintain a “Moderate Buy” consensus rating with an average price target of $375.54, although several firms recently lowered their targets. Two executives sold shares, including the CFO’s roughly $2.1 million transaction.

Ceredex Value Advisors LLC acquired a new position in The Home Depot, Inc. (NYSE:HD - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor acquired 78,862 shares of the home improvement retailer's stock, valued at approximately $27,813,000.

Several other institutional investors and hedge funds have also recently modified their holdings of HD. Parvin Asset Management LLC increased its position in shares of Home Depot by 110.0% during the third quarter. Parvin Asset Management LLC now owns 63 shares of the home improvement retailer's stock valued at $26,000 after buying an additional 33 shares during the period. Zeit Capital LLC bought a new stake in Home Depot during the 2nd quarter valued at approximately $26,000. Advocate Investing Services LLC bought a new stake in Home Depot during the 4th quarter valued at approximately $25,000. Cache Advisors LLC purchased a new position in shares of Home Depot during the 1st quarter worth approximately $27,000. Finally, Imprint Wealth LLC purchased a new position in shares of Home Depot during the 3rd quarter worth approximately $34,000. 70.86% of the stock is owned by hedge funds and other institutional investors.

Home Depot Price Performance

HD stock opened at $328.80 on Friday. The company has a debt-to-equity ratio of 2.64, a quick ratio of 0.31 and a current ratio of 1.08. The firm has a 50 day moving average price of $341.07 and a 200-day moving average price of $338.82. The Home Depot, Inc. has a 52-week low of $289.10 and a 52-week high of $426.75. The firm has a market capitalization of $328.04 billion, a price-to-earnings ratio of 23.01, a PEG ratio of 3.69 and a beta of 0.95.

Home Depot (NYSE:HD - Get Free Report) last posted 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 return on equity of 106.42% and a net margin of 8.41%.The company had revenue of $47.86 billion for the quarter, compared to the consensus estimate of $47.24 billion. During the same quarter in the prior year, the business posted $4.68 EPS. The firm's quarterly revenue 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 14.99 EPS for the current fiscal year.

Home Depot Announces Dividend

The business 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 of this dividend is Thursday, September 3rd. Home Depot's dividend payout ratio is currently 65.22%.

Wall Street Analysts Forecast Growth

HD has been the subject of a number of research analyst reports. Telsey Advisory Group lowered their target price on Home Depot from $435.00 to $410.00 and set an "outperform" rating for the company in a research note on Wednesday, May 20th. The Goldman Sachs Group reduced their price target on Home Depot from $409.00 to $390.00 and set a "buy" rating on the stock in a research note on Wednesday, May 20th. Sanford C. Bernstein reiterated a "market perform" rating and issued a $354.00 price objective on shares of Home Depot in a report on Wednesday, August 19th. BNP Paribas Exane lowered their price objective on Home Depot from $348.00 to $325.00 and set a "neutral" rating for the company in a research report on Tuesday, May 19th. Finally, Morgan Stanley dropped their target price on shares of Home Depot from $420.00 to $400.00 and set an "overweight" rating on the stock in a report on Wednesday, May 20th. Eighteen 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 company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $375.54.

Insiders Place Their Bets

In other news, CFO Richard V. Mcphail sold 5,989 shares of Home Depot stock in a transaction dated 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 owned 48,104 shares of the company's stock, valued at $16,759,433.60. The trade was a 11.07% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Michael F. Rowe sold 710 shares of the company's stock in a transaction dated 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 transaction, the executive vice president owned 6,838 shares in the company, valued at approximately $2,302,764.88. The trade was 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.

Trending Headlines about Home Depot

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

• Positive Sentiment: Home Depot expanded its Magic Apron AI assistant to all U.S. stores. The tool provides localized product information, project guidance and store navigation through text, voice, images and multiple languages. With millions of questions handled monthly, the rollout could improve customer service, associate productivity and sales conversion. The Home Depot Expands Magic Apron to Deliver Personalized and Localized In-Store Guidance
• Positive Sentiment: Recent analysis argues that Home Depot is showing its clearest turnaround signal in roughly two years. Analysts remain generally constructive, while the company’s recent quarterly results showed revenue growth and earnings above expectations, potentially positioning HD to benefit disproportionately when housing and remodeling demand recover. Prediction: Home Depot’s Turnaround Could Be Bigger Than Investors Expect
• Positive Sentiment: A comparison with Lowe’s suggests Home Depot may be the stronger housing-recovery play, with its scale, professional-customer exposure and strategic execution differentiating it in a frozen housing market. Home Depot vs. Lowe’s: One Housing Recovery Play Stands Out
• Neutral Sentiment: Home Depot beat second-quarter estimates, but coverage highlights a $685 million tariff refund. Because the refund may be a one-time benefit rather than recurring operating improvement, investors may be discounting part of the earnings upside. Home Depot Beat Q2 Estimates. What Did the $685M Tariff Refund Change?
• Negative Sentiment: Executive Vice President Michael F. Rowe sold 710 shares worth approximately $239,100, reducing his direct holdings by 9.4%. The transaction is relatively small and may be routine, but insider selling can add modest sentiment pressure. SEC Insider Transaction Filing

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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