Foster & Motley Inc. Makes New $1.12 Million Investment in The Home Depot, Inc. $HD

Key Points

• Foster & Motley invested approximately $1.12 million in Home Depot during the second quarter by purchasing 3,179 shares. Institutional investors collectively own 70.86% of the company.
• Home Depot reported quarterly revenue of $47.86 billion, up 5.7% year over year, while adjusted EPS of $4.92 exceeded analysts’ $4.73 estimate. Growth is being driven mainly by smaller projects as high mortgage rates pressure larger home-improvement purchases.
• The company declared a quarterly dividend of $2.33 per share, or $9.32 annually, representing a 2.8% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $375.54, though a $2.1 million CFO stock sale and a $685 million tariff refund introduce some caution.

Foster & Motley Inc. purchased a new stake in The Home Depot, Inc. (NYSE:HD - Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The firm purchased 3,179 shares of the home improvement retailer's stock, valued at approximately $1,121,000.

Other large investors have also modified their holdings of the company. Advocate Investing Services LLC purchased a new position in Home Depot in the fourth quarter valued at $25,000. Zeit Capital LLC purchased a new stake in Home Depot during the 2nd quarter worth about $26,000. Parvin Asset Management LLC raised its position in Home Depot by 110.0% in the 3rd quarter. Parvin Asset Management LLC now owns 63 shares of the home improvement retailer's stock valued at $26,000 after purchasing an additional 33 shares in the last quarter. Cache Advisors LLC acquired a new stake in Home Depot in the 1st quarter valued at about $27,000. Finally, Merkkuri Wealth Advisors LLC purchased a new position in shares of Home Depot in the 1st quarter valued at about $28,000. Hedge funds and other institutional investors own 70.86% of the company's stock.

Key Home Depot News

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

• Positive Sentiment: Home Depot reported quarterly revenue of $47.86 billion, up 5.7% year over year and above expectations, while adjusted diluted EPS of $4.92 exceeded the $4.73 consensus estimate. The results provided support for the stock, although they did not yet indicate a broad-based recovery in home improvement. Home Depot Q2 estimates and tariff refund
• Positive Sentiment: Management commentary indicated that smaller projects are driving growth as high mortgage rates and housing affordability challenges weigh on larger purchases. This suggests customers remain active, even if demand is shifting toward lower-cost jobs. Home Depot Q2 earnings call transcript
• Positive Sentiment: Home Depot’s 17-year dividend growth streak remains an attraction for income-oriented investors who can collect dividends while waiting for housing and renovation demand to improve. Home Depot dividend streak
• Neutral Sentiment: A $685 million tariff refund contributed to the quarterly outcome, raising concerns that part of the earnings strength may be one-time rather than driven by ongoing operating improvement. Home Depot tariff refund analysis
• Neutral Sentiment: The nationwide launch of three-hour delivery expands Home Depot’s e-commerce and fulfillment capabilities, but its effect on sales and margins remains unproven. Home Depot three-hour delivery
• Neutral Sentiment: Articles highlighting HD’s long-term multibagger returns and ownership by prominent investors may reinforce the company’s appeal, but they are not immediate earnings catalysts. Home Depot long-term returns
• Negative Sentiment: Home Depot’s CFO sold approximately $2.1 million of company stock. While insider selling can reflect personal financial planning, it may weigh modestly on sentiment. Home Depot CFO stock sale

Insider Activity at Home Depot

In other news, CFO Richard V. Mcphail sold 5,989 shares of Home Depot stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $348.40, for a total value of $2,086,567.60. Following the transaction, the chief financial officer directly owned 48,104 shares of the company's stock, valued at $16,759,433.60. The trade was a 11.07% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. 0.08% of the stock is owned by insiders.

Home Depot Stock Up 0.2%

Shares of NYSE HD opened at $337.97 on Wednesday. The stock has a market cap of $337.00 billion, a PE ratio of 23.65, a price-to-earnings-growth ratio of 3.72 and a beta of 0.95. The company has a quick ratio of 0.31, a current ratio of 1.08 and a debt-to-equity ratio of 2.64. The Home Depot, Inc. has a 52-week low of $289.10 and a 52-week high of $426.75. The business has a 50-day moving average price of $341.04 and a 200 day moving average price of $339.54.

Home Depot (NYSE:HD - Get Free Report) last released its quarterly earnings results on Tuesday, August 18th. The home improvement retailer reported $4.92 EPS for the quarter, topping the consensus estimate of $4.73 by $0.19. The company had revenue of $47.86 billion for the quarter, compared to analyst estimates of $47.24 billion. Home Depot had a return on equity of 106.42% and a net margin of 8.41%.The firm's revenue was up 5.7% compared to the same quarter last year. During the same quarter in the previous year, the company posted $4.68 earnings per share. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. Equities research analysts forecast that The Home Depot, Inc. will post 14.99 earnings per share for the current year.

Home Depot Announces Dividend

The firm 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. The ex-dividend date is Thursday, September 3rd. This represents a $9.32 dividend on an annualized basis and a dividend yield of 2.8%. Home Depot's dividend payout ratio (DPR) is 65.22%.

Wall Street Analyst Weigh In

HD has been the topic of several analyst reports. KeyCorp reaffirmed a "sector weight" rating on shares of Home Depot in a report on Wednesday, August 19th. Jefferies Financial Group reiterated a "buy" rating and set a $398.00 price target on shares of Home Depot in a report on Tuesday, August 18th. UBS Group lowered their price target on shares of Home Depot from $430.00 to $420.00 and set a "buy" rating for the company in a report on Wednesday, August 19th. Gordon Haskett increased their price objective on shares of Home Depot from $320.00 to $330.00 in a research report on Friday, June 12th. Finally, Morgan Stanley reduced their price objective on shares of Home Depot from $420.00 to $400.00 and set an "overweight" rating on the stock in a report on Wednesday, May 20th. Eighteen analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $375.54.

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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