Clearbridge Investments LLC Cuts Stock Holdings in The Home Depot, Inc. $HD

Key Points

• Clearbridge Investments reduced its Home Depot stake by 4.4% in the fourth quarter, selling 61,382 shares and leaving it with 1.34 million shares valued at about $461.2 million.
• Home Depot’s latest earnings beat Wall Street estimates, with EPS of $3.43 and revenue of $41.77 billion, while revenue rose 4.8% year over year.
• Analysts remain mostly constructive despite price target cuts: the stock has a Moderate Buy consensus with an average target price of $371.36, and Home Depot also declared a quarterly dividend of $2.33 per share.

Clearbridge Investments LLC trimmed its stake in shares of The Home Depot, Inc. (NYSE:HD - Free Report) by 4.4% in the 4th quarter, according to its most recent disclosure with the SEC. The institutional investor owned 1,340,404 shares of the home improvement retailer's stock after selling 61,382 shares during the period. Clearbridge Investments LLC owned 0.13% of Home Depot worth $461,233,000 at the end of the most recent quarter.

Several other institutional investors also recently bought and sold shares of the stock. SouthState Bank Corp grew its stake in Home Depot by 0.3% during the fourth quarter. SouthState Bank Corp now owns 59,683 shares of the home improvement retailer's stock valued at $20,537,000 after acquiring an additional 174 shares in the last quarter. Capital World Investors lifted its position in Home Depot by 1.6% during the fourth quarter. Capital World Investors now owns 13,147,117 shares of the home improvement retailer's stock valued at $4,524,166,000 after purchasing an additional 201,694 shares during the last quarter. Capital International Sarl lifted its position in Home Depot by 23.5% during the fourth quarter. Capital International Sarl now owns 63,580 shares of the home improvement retailer's stock valued at $21,878,000 after purchasing an additional 12,098 shares during the last quarter. Capital International Ltd. CA lifted its position in Home Depot by 29.8% during the fourth quarter. Capital International Ltd. CA now owns 31,347 shares of the home improvement retailer's stock valued at $10,787,000 after purchasing an additional 7,200 shares during the last quarter. Finally, Capital International Inc. CA lifted its position in Home Depot by 4.3% during the fourth quarter. Capital International Inc. CA now owns 150,368 shares of the home improvement retailer's stock valued at $51,742,000 after purchasing an additional 6,187 shares during the last quarter. 70.86% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

HD has been the subject of several research reports. Citigroup lowered 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 report on Tuesday, May 12th. DA Davidson lowered their price objective on shares of Home Depot from $445.00 to $377.00 and set a "buy" rating for the company in a research report on Tuesday, May 19th. KeyCorp reiterated a "sector weight" rating on shares of Home Depot in a research report on Wednesday, February 25th. Weiss Ratings lowered shares of Home Depot from a "hold (c)" rating to a "hold (c-)" rating in a research report on Tuesday, May 26th. Finally, Wolfe Research reiterated an "outperform" rating and set a $365.00 price objective on shares of Home Depot in a research report on Tuesday, May 19th. Nineteen investment analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $371.36.

Home Depot Price Performance

Home Depot stock opened at $310.73 on Friday. The firm has a 50-day moving average price of $322.95 and a 200-day moving average price of $347.74. The firm has a market capitalization of $309.83 billion, a PE ratio of 22.07, a price-to-earnings-growth ratio of 3.59 and a beta of 0.97. The company has a current ratio of 1.04, a quick ratio of 0.28 and a debt-to-equity ratio of 3.23. 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 released its earnings results on Tuesday, May 19th. The home improvement retailer reported $3.43 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.41 by $0.02. The firm had revenue of $41.77 billion during the quarter, compared to analyst estimates of $41.59 billion. Home Depot had a net margin of 8.41% and a return on equity of 117.24%. The business's revenue was up 4.8% on a year-over-year basis. During the same quarter last year, the business earned $3.56 EPS. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. As a group, equities research analysts forecast that The Home Depot, Inc. will post 15.01 EPS for the current year.

Home Depot Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, June 18th. Stockholders of record on Thursday, June 4th will be issued a $2.33 dividend. This represents a $9.32 annualized dividend and a dividend yield of 3.0%. The ex-dividend date is Thursday, June 4th. Home Depot's dividend payout ratio (DPR) is 66.19%.

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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