Employees Retirement System of Texas Boosts Stock Position in The Home Depot, Inc. $HD

Key Points

• Employees Retirement System of Texas increased its stake in The Home Depot by 24.5% in Q3 to 280,162 shares (about $113.52 million), making HD its 19th largest holding and ~0.9% of the fund's portfolio.
• Home Depot beat Q4 expectations with $2.72 EPS vs. $2.52 expected and $38.2B revenue, set FY‑2026 EPS guidance of 14.230–14.799, and raised the quarterly dividend to $2.33 (annualized $9.32, ~2.8% yield).
• Analyst sentiment remains broadly positive — the consensus is a “Moderate Buy” with an average target of $416 (notable targets range from Citi's $450 to JPMorgan's $423), while institutional ownership stands at about 70.9%.

Employees Retirement System of Texas grew its holdings in shares of The Home Depot, Inc. (NYSE:HD - Free Report) by 24.5% in the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 280,162 shares of the home improvement retailer's stock after buying an additional 55,211 shares during the quarter. Home Depot accounts for about 0.9% of Employees Retirement System of Texas' investment portfolio, making the stock its 19th largest holding. Employees Retirement System of Texas' holdings in Home Depot were worth $113,519,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds have also made changes to their positions in the stock. Financially Speaking Inc acquired a new position in Home Depot during the 3rd quarter worth $31,000. Sagard Holdings Management Inc. acquired a new stake in shares of Home Depot in the 2nd quarter valued at about $29,000. Dougherty Wealth Advisers LLC acquired a new stake in shares of Home Depot in the 3rd quarter valued at about $38,000. AXS Investments LLC bought a new position in shares of Home Depot during the third quarter worth about $38,000. Finally, Marquette Asset Management LLC acquired a new position in Home Depot in the third quarter worth about $38,000. Institutional investors and hedge funds own 70.86% of the company's stock.

Analysts Set New Price Targets

Several analysts have issued reports on HD shares. Citigroup upped their price objective on Home Depot from $407.00 to $450.00 and gave the company a "buy" rating in a research note on Thursday, February 12th. JPMorgan Chase & Co. lowered their price target on Home Depot from $444.00 to $423.00 and set an "overweight" rating for the company in a report on Wednesday, November 19th. Zacks Research raised Home Depot from a "strong sell" rating to a "hold" rating in a research report on Monday, February 9th. Piper Sandler reduced their price objective on Home Depot from $441.00 to $422.00 and set an "overweight" rating on the stock in a research note on Monday, February 23rd. Finally, Wall Street Zen downgraded shares of Home Depot from a "hold" rating to a "sell" rating in a report on Friday, November 28th. Twenty analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Home Depot currently has an average rating of "Moderate Buy" and an average target price of $416.00.

Home Depot Stock Performance

HD stock opened at $338.88 on Friday. The Home Depot, Inc. has a 1 year low of $326.31 and a 1 year high of $426.75. The stock has a market capitalization of $337.36 billion, a price-to-earnings ratio of 23.81, a PEG ratio of 12.61 and a beta of 1.09. The company has a debt-to-equity ratio of 3.62, a quick ratio of 0.26 and a current ratio of 1.06. The stock's fifty day moving average is $373.95 and its two-hundred day moving average is $377.29.

Home Depot (NYSE:HD - Get Free Report) last released its quarterly earnings results on Tuesday, February 24th. The home improvement retailer reported $2.72 EPS for the quarter, topping the consensus estimate of $2.52 by $0.20. The business had revenue of $38.20 billion during the quarter, compared to analyst estimates of $38.01 billion. Home Depot had a net margin of 8.60% and a return on equity of 134.32%. The company's quarterly revenue was down 3.8% on a year-over-year basis. During the same quarter in the prior year, the firm earned $3.13 earnings per share. Home Depot has set its FY 2026 guidance at 14.230-14.799 EPS. On average, research analysts predict that The Home Depot, Inc. will post 15.13 EPS for the current year.

Home Depot Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, March 26th. Shareholders of record on Thursday, March 12th will be given a $2.33 dividend. This is a positive change from Home Depot's previous quarterly dividend of $2.30. The ex-dividend date is Thursday, March 12th. This represents a $9.32 annualized dividend and a yield of 2.8%. Home Depot's payout ratio is currently 64.65%.

Insider Activity at Home Depot

In other news, CFO Richard V. Mcphail sold 2,550 shares of Home Depot stock in a transaction that occurred on Wednesday, March 4th. The stock was sold at an average price of $368.89, for a total transaction of $940,669.50. Following the sale, the chief financial officer owned 44,566 shares of the company's stock, valued at approximately $16,439,951.74. The trade was a 5.41% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, EVP Teresa Wynn Roseborough sold 2,872 shares of the business's stock in a transaction that occurred on Friday, December 26th. The stock was sold at an average price of $348.52, for a total value of $1,000,949.44. Following the transaction, the executive vice president owned 13,196 shares of the company's stock, valued at approximately $4,599,069.92. This represents a 17.87% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.10% of the stock is currently owned by company insiders.

Home Depot News Summary

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

• Positive Sentiment: Q4 results beat expectations and management reiterated cautious FY guidance while increasing the quarterly dividend, supporting cash-flow confidence and long-term upside. MarketBeat: Home Depot stock keeps falling — analysts say the upside is still there
• Positive Sentiment: Operational investments aimed at professional customers (acquisitions, specialty products, an AI quoting tool and a new real-time delivery tracker for large/pro orders) should support steadier, higher-margin revenue even if DIY demand softens. TheStreet: Home Depot launches real-time delivery tracker
• Positive Sentiment: Analysts remain constructive overall — multiple firms raised targets after the quarter and consensus still skews toward Buy, leaving upside potential if housing or rates improve. MarketBeat: analyst coverage
• Neutral Sentiment: Long-term performance studies show Home Depot has delivered strong multi-year returns, which may comfort dividend and buy-and-hold investors but doesn’t prevent near-term volatility tied to housing. Benzinga: 15‑year returns
• Negative Sentiment: High-profile loss-prevention incidents (the so‑called “pretty privilege” tests and other viral stories) have generated negative publicity and investor concern about brand risk and store operations. TipRanks: “Pretty Privilege” tests send Home Depot stock slumping
• Negative Sentiment: Coverage notes softer home-improvement demand as higher mortgage rates and weak housing turnover cool renovation spending — a direct hit to Home Depot’s core markets and valuation. Yahoo Finance: Assessing Home Depot valuation
• Negative Sentiment: Zacks has trimmed multiple near-term and FY estimates and keeps a Hold stance, signaling analyst caution on earnings growth — a headwind for sentiment until data or guidance improves.
• Negative Sentiment: Political headlines (comments by a former CEO supporting a polarizing energy plan) have added volatility and may deter some investors sensitive to reputational or governance risk. TipRanks: former CEO backs Trump energy plan

About Home Depot

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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