Davidson Investment Advisors Lowers Holdings in The Home Depot, Inc. $HD

Key Points

• Davidson Investment Advisors reduced its Home Depot stake by 5.9% in the second quarter, selling 3,831 shares and retaining 61,101 shares valued at approximately $21.5 million. Institutional investors collectively own 70.86% of HD.
• Analyst sentiment remains broadly positive, with 18 Buy, 13 Hold and one Sell rating; the consensus is “Moderate Buy” with an average price target of $373.18, despite several recent target cuts.
• Home Depot reported quarterly EPS of $3.43 and revenue of $41.77 billion, slightly exceeding estimates, and pays a $2.33 quarterly dividend—equivalent to a 2.8% yield. However, high interest rates, weak housing activity and margin pressures continue to weigh on the outlook.

Davidson Investment Advisors lowered its stake in shares of The Home Depot, Inc. (NYSE:HD - Free Report) by 5.9% in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 61,101 shares of the home improvement retailer's stock after selling 3,831 shares during the quarter. Davidson Investment Advisors' holdings in Home Depot were worth $21,549,000 at the end of the most recent quarter.

Other large investors have also modified their holdings of the company. Norges Bank purchased a new stake in Home Depot in the fourth quarter valued at approximately $4,850,329,000. Wellington Management Group LLP increased its position in Home Depot by 60.8% during the third quarter. Wellington Management Group LLP now owns 10,143,089 shares of the home improvement retailer's stock worth $4,109,878,000 after purchasing an additional 3,836,051 shares during the last quarter. Cardano Risk Management B.V. raised its stake in Home Depot by 901.5% during the fourth quarter. Cardano Risk Management B.V. now owns 3,290,540 shares of the home improvement retailer's stock worth $1,132,275,000 after purchasing an additional 2,961,979 shares during the period. Diamant Asset Management Inc. raised its stake in Home Depot by 33,026.3% during the first quarter. Diamant Asset Management Inc. now owns 2,342,026 shares of the home improvement retailer's stock worth $770,269,000 after purchasing an additional 2,334,956 shares during the period. Finally, J. Stern & Co. LLP raised its stake in Home Depot by 14,869.3% during the fourth quarter. J. Stern & Co. LLP now owns 2,232,521 shares of the home improvement retailer's stock worth $768,210,000 after purchasing an additional 2,217,607 shares during the period. 70.86% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

HD has been the topic of a number of research analyst reports. Oppenheimer lowered 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. Wells Fargo & Company upped their price objective on Home Depot from $360.00 to $400.00 and gave the stock an "overweight" rating in a report on Tuesday, August 11th. Robert W. Baird cut their target price on Home Depot from $430.00 to $380.00 and set an "outperform" rating on the stock in a research report on Wednesday, May 20th. Weiss Ratings upgraded Home Depot from a "hold (c-)" rating to a "hold (c)" rating in a report on Tuesday, July 7th. Finally, Evercore lowered their price target on Home Depot from $415.00 to $400.00 and set an "outperform" rating for the company in a research 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 issued a Sell rating to the company. According to data from MarketBeat.com, Home Depot has a consensus rating of "Moderate Buy" and an average price target of $373.18.

Home Depot Stock Performance

Home Depot stock opened at $338.21 on Friday. The stock's 50 day moving average price is $339.17 and its 200 day moving average price is $341.85. The firm has a market capitalization of $337.23 billion, a PE ratio of 24.02, a price-to-earnings-growth ratio of 4.08 and a beta of 0.95. The company has a debt-to-equity ratio of 3.23, a quick ratio of 0.28 and a current ratio of 1.04. The Home Depot, Inc. has a one year low of $289.10 and a one year high of $426.75.

Home Depot (NYSE:HD - Get Free Report) last released its quarterly earnings results on Tuesday, May 19th. The home improvement retailer reported $3.43 earnings per share for the quarter, topping analysts' consensus estimates of $3.41 by $0.02. The firm had revenue of $41.77 billion during the quarter, compared to analysts' expectations of $41.59 billion. Home Depot had a return on equity of 117.24% and a net margin of 8.41%.Home Depot's quarterly revenue was up 4.8% compared to the same quarter last year. During the same quarter in the prior year, the business earned $3.56 EPS. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. As a group, sell-side analysts expect that The Home Depot, Inc. will post 15 EPS for the current fiscal year.

Home Depot Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, June 18th. Stockholders of record on Thursday, June 4th were paid a $2.33 dividend. The ex-dividend date was Thursday, June 4th. This represents a $9.32 annualized dividend and a dividend yield of 2.8%. Home Depot's dividend payout ratio is 66.19%.

Key Stories Impacting Home Depot

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

• Positive Sentiment: Analysts expect second-quarter sales and earnings growth, supported by continued momentum among professional customers (“Pros”) and gains in digital sales. Wells Fargo also raised its price target to $400, suggesting potential upside if Home Depot delivers a solid report. Home Depot to Post Q2 Earnings Wells Fargo Raises Home Depot Price Target
• Positive Sentiment: Home Depot’s long record of dividend payments may provide support for income-focused investors, while the bankruptcy filing of a smaller hardware rival could modestly reinforce the company’s scale and competitive position. Home Depot Dividend Streak Hardware Rival Files Chapter 11
• Neutral Sentiment: The company’s finance chief Richard McPhail and another senior executive will help manage operations during Decker’s absence. The arrangement limits immediate disruption, but investors may seek more clarity on the duration of the leave and its effect on strategy. Home Depot Executives Step Up During CEO Leave
• Negative Sentiment: Oppenheimer and other analysts caution that second-quarter results may show little evidence of a recovery. High interest rates, weak housing activity, margin pressure and rising fuel costs are weighing on renovation demand and retailer expenses. Home Depot and Lowe’s Results Face Macro Pressures
• Negative Sentiment: Several previews argue that HD may already be priced for a recovery, increasing the risk of a negative reaction if sales, margins or management guidance disappoint. Bernstein has maintained a Hold rating. Home Depot Q2 Earnings Preview Bernstein Maintains Hold Rating

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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