Cullen Frost Bankers Inc. Lowers Stake in The Home Depot, Inc. $HD

Key Points

• Cullen Frost Bankers Inc. reduced its Home Depot stake by 12% in the fourth quarter, selling 24,223 shares and leaving it with 178,464 shares valued at about $61.4 million.
• Home Depot posted better-than-expected quarterly results, with EPS of $3.43 on revenue of $41.77 billion, and revenue rose 4.8% from a year earlier.
• The company raised its quarterly dividend to $2.33 per share and reaffirmed fiscal 2026 guidance, even as analysts remain mixed with a consensus rating of “Moderate Buy.”

Cullen Frost Bankers Inc. cut its position in shares of The Home Depot, Inc. (NYSE:HD - Free Report) by 12.0% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 178,464 shares of the home improvement retailer's stock after selling 24,223 shares during the quarter. Cullen Frost Bankers Inc.'s holdings in Home Depot were worth $61,409,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also modified their holdings of the company. Parvin Asset Management LLC grew its holdings 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 worth $26,000 after buying an additional 33 shares in the last quarter. Financially Speaking Inc purchased a new stake in shares of Home Depot during the third quarter worth about $31,000. Key Capital Management INC acquired a new stake in shares of Home Depot in the fourth quarter worth approximately $28,000. Imprint Wealth LLC acquired a new stake in shares of Home Depot in the third quarter worth approximately $34,000. Finally, Navalign LLC acquired a new stake in shares of Home Depot in the fourth quarter worth approximately $31,000. 70.86% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

In other news, CFO Richard V. Mcphail sold 2,550 shares of the company's stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $368.89, for a total value of $940,669.50. Following the completion of the transaction, the chief financial officer directly owned 44,566 shares in the company, valued at approximately $16,439,951.74. This represents a 5.41% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 0.08% of the stock is owned by corporate insiders.

Analyst Ratings Changes

HD has been the topic of several research analyst reports. Zacks Research raised shares of Home Depot from a "strong sell" rating to a "hold" rating in a research report on Monday, February 9th. Wall Street Zen raised shares of Home Depot from a "sell" rating to a "hold" rating in a research report on Sunday. Sanford C. Bernstein decreased their target price on shares of Home Depot from $390.00 to $365.00 and set a "market perform" rating on the stock in a research report on Thursday, May 14th. DA Davidson set a $377.00 target price on shares of Home Depot in a research report on Tuesday. Finally, Daiwa Securities Group raised their target price on shares of Home Depot from $360.00 to $390.00 and gave the stock a "neutral" rating in a research report on Thursday, February 26th. Twenty investment analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $392.45.

Home Depot Trading Up 0.8%

Shares of HD stock opened at $302.23 on Wednesday. The stock has a market cap of $301.03 billion, a price-to-earnings ratio of 21.24, a price-to-earnings-growth ratio of 3.46 and a beta of 1.00. The company has a quick ratio of 0.26, a current ratio of 1.06 and a debt-to-equity ratio of 3.62. The Home Depot, Inc. has a fifty-two week low of $289.10 and a fifty-two week high of $426.75. The firm's 50 day moving average price is $329.41 and its two-hundred day moving average price is $353.04.

Home Depot (NYSE:HD - Get Free Report) last announced its quarterly earnings results on Tuesday, May 19th. The home improvement retailer reported $3.43 earnings per share for the quarter, beating analysts' consensus estimates of $3.41 by $0.02. The firm had revenue of $41.77 billion for the quarter, compared to analysts' expectations of $41.59 billion. Home Depot had a net margin of 8.60% and a return on equity of 134.32%. Home Depot's revenue was up 4.8% compared to the same quarter last year. During the same period in the previous year, the company posted $3.56 earnings per share. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. On average, analysts anticipate that The Home Depot, Inc. will post 15.02 EPS for the current year.

Home Depot Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, March 26th. Stockholders of record on Thursday, March 12th were paid a dividend of $2.33 per share. This is an increase from Home Depot's previous quarterly dividend of $2.30. This represents a $9.32 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date was Thursday, March 12th. Home Depot's payout ratio is 65.50%.

Key Home Depot News

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

• Positive Sentiment: Home Depot beat Wall Street’s estimates on both earnings and revenue, reporting EPS of $3.43 on sales of $41.77 billion, helped by steady demand from professional customers and smaller DIY projects. Home Depot beats quarterly sales estimates on steady demand
• Positive Sentiment: The company reaffirmed its fiscal 2026 guidance, which reassured investors worried about a slowdown in home-improvement spending. Home Depot's stock rises as the full-year outlook was kept intact, a relief for worried investors
• Neutral Sentiment: Comparable sales rose 0.6% overall and 0.4% in the U.S., showing modest growth but also confirming that demand is improving only gradually. The Home Depot Announces First Quarter Fiscal 2026 Results; Reaffirms Fiscal 2026 Guidance
• Neutral Sentiment: Management said consumers are still feeling pressure from higher gas prices and affordability concerns, and the company noted that stronger second-half growth may depend more on normal storm activity than on a broad consumer recovery. Home Depot CFO: 'No question' consumers feel the effects of high gas prices, affordability pressures
• Negative Sentiment: Several analysts trimmed price targets after the report, reflecting caution about slower housing-related spending and limited near-term growth. Home Depot price target updates

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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