Compass Financial Management LLC Buys New Position in The Home Depot, Inc. $HD

Key Points

• Compass Financial Management initiated a Home Depot position worth approximately $1.24 million, while institutional investors collectively own 70.86% of the company’s shares.
• Home Depot exceeded quarterly expectations, reporting $4.92 in EPS 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 2.9% annualized yield.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $375.54, though concerns include elevated mortgage rates, pressure on discretionary spending, and recent insider stock sales.

Compass Financial Management LLC purchased a new position in shares of The Home Depot, Inc. (NYSE:HD - Free Report) in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 3,520 shares of the home improvement retailer's stock, valued at approximately $1,238,000.

Other institutional investors and hedge funds have also bought and sold shares of the company. BlackRock Inc. purchased a new position in Home Depot during the 2nd quarter worth $28,771,247,000. Bank of America Corp DE purchased a new stake in shares of Home Depot in the second quarter valued at about $5,780,468,000. Norges Bank purchased a new stake in shares of Home Depot in the fourth quarter valued at about $4,850,329,000. Bank of New York Mellon Corp bought a new position in shares of Home Depot during the second quarter valued at about $2,777,396,000. Finally, Corient Private Wealth LP bought a new position in shares of Home Depot during the second quarter valued at about $390,913,000. 70.86% of the stock is owned by hedge funds and other institutional investors.

Home Depot Price Performance

Shares of NYSE:HD opened at $320.94 on Monday. The company has a market capitalization of $320.20 billion, a P/E ratio of 22.46, a price-to-earnings-growth ratio of 3.53 and a beta of 0.95. The company's 50-day moving average is $339.35 and its 200 day moving average is $336.02. 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 Home Depot, Inc. has a fifty-two week low of $289.10 and a fifty-two week high of $426.75.

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

Home Depot Dividend Announcement

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 given a dividend of $2.33 per share. This represents a $9.32 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date of this dividend is Thursday, September 3rd. Home Depot's dividend payout ratio is currently 65.22%.

Analysts Set New Price Targets

A number of brokerages have issued reports on HD. Argus reaffirmed a "buy" rating and issued a $400.00 price objective on shares of Home Depot in a research report on Wednesday, August 19th. Oppenheimer decreased their price objective on shares of Home Depot from $405.00 to $310.00 and set a "market perform" rating for the company in a research note on Monday, May 18th. Piper Sandler dropped their target price on shares of Home Depot from $422.00 to $421.00 and set an "overweight" rating on the stock in a research report on Wednesday, May 20th. DA Davidson restated a "buy" rating and issued a $377.00 target price on shares of Home Depot in a research note on Wednesday, August 19th. Finally, Evercore reduced their target price on Home Depot from $415.00 to $400.00 and set an "outperform" rating for the company 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 assigned a Sell rating to the company's stock. According to MarketBeat.com, Home Depot currently has an average rating of "Moderate Buy" and an average price target of $375.54.

Insider Transactions at Home Depot

In other Home Depot news, EVP Michael F. Rowe sold 710 shares of the 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 transaction, the executive vice president directly owned 6,838 shares of the company's stock, valued at approximately $2,302,764.88. This represents 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 accessible through this link. Also, CFO Richard V. Mcphail sold 5,989 shares of the firm'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 sale, the chief financial officer directly owned 48,104 shares of the company's stock, valued at $16,759,433.60. This represents a 11.07% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 9,154 shares of company stock worth $3,132,798 in the last quarter. Insiders own 0.08% of the company's stock.

Key Headlines Impacting Home Depot

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

• Positive Sentiment: Retail earnings point to a relatively resilient higher-income consumer. Home Depot and Lowe’s reported solid home-improvement sales, suggesting demand for repairs and larger projects remains healthier than spending at some value-oriented retailers. Retail Earnings Just Exposed a Bigger Divide in the U.S. Consumer Economy
• Positive Sentiment: Analysts at Zacks updated estimates for Home Depot’s fiscal third-quarter earnings, providing a fresh valuation and earnings catalyst following the company’s prior quarterly beat. Home Depot most recently reported earnings of $4.92 per share versus a $4.73 consensus estimate, with revenue also exceeding forecasts. Zacks Research Estimates Home Depot's Q3 Earnings
• Neutral Sentiment: The stock’s valuation is near the middle of its peer group, but analysts question whether its operating performance and growth have fallen behind competitors. This creates potential upside if productivity improves, but also limits enthusiasm until growth reaccelerates. The Gap Between HD Stock And Its Own Numbers
• Negative Sentiment: Mortgage rates recently reached a one-year high following a global bond-market sell-off. Elevated borrowing costs can discourage home purchases, remodeling projects and other large-ticket transactions that drive Home Depot’s sales. Mortgage Rates Just Hit a 1-Year High
• Negative Sentiment: Some investors view weakness in consumer-focused stocks, including Home Depot, as a warning that middle-income households are under pressure. That macro concern could weigh on discretionary home-improvement spending and the broader retail sector. Wall Street worried about GOP in midterms
• Negative Sentiment: One market analysis cited Home Depot’s transition to positive free cash flow in the early 2000s as evidence that growth had slowed, reinforcing concerns that the company’s mature business may offer limited expansion compared with faster-growing retailers. Home Depot stock information

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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