Gables Capital Management Inc. Invests $5.59 Million in The Home Depot, Inc. $HD

Key Points

• Gables Capital Management purchased 15,839 Home Depot shares worth approximately $5.59 million, making HD about 2% of its portfolio and its 11th-largest holding. Institutional investors collectively own 70.86% of the company.
• Home Depot exceeded quarterly expectations with $4.92 in EPS and $47.86 billion in revenue, up 5.7% year over year. However, a $685 million tariff refund contributed to results, while high mortgage rates are shifting demand toward smaller projects.
• The company declared a quarterly dividend of $2.33, equivalent to an annualized $9.32 payout and a 2.8% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $375.54, despite several recent target reductions.

Gables Capital Management Inc. bought a new stake in shares of The Home Depot, Inc. (NYSE:HD - Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The firm bought 15,839 shares of the home improvement retailer's stock, valued at approximately $5,586,000. Home Depot accounts for approximately 2.0% of Gables Capital Management Inc.'s holdings, making the stock its 11th largest position.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the stock. BlackRock Inc. acquired a new position in shares of Home Depot during the second quarter valued at approximately $28,771,247,000. Norges Bank acquired a new position in shares of Home Depot during the 4th quarter valued at $4,850,329,000. Bank of New York Mellon Corp bought a new stake in shares of Home Depot in the 2nd quarter worth $2,777,396,000. Wellington Management Group LLP lifted its holdings in shares of Home Depot by 60.8% in the third quarter. Wellington Management Group LLP now owns 10,143,089 shares of the home improvement retailer's stock valued at $4,109,878,000 after buying an additional 3,836,051 shares during the period. Finally, Cardano Risk Management B.V. boosted 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 valued at $1,132,275,000 after buying an additional 2,961,979 shares in the last quarter. 70.86% of the stock is currently owned by institutional investors.

Home Depot Stock Up 0.2%

Home Depot stock opened at $337.97 on Wednesday. The company has a current ratio of 1.08, a quick ratio of 0.31 and a debt-to-equity ratio of 2.64. The Home Depot, Inc. has a 1-year low of $289.10 and a 1-year high of $426.75. The firm's fifty day simple moving average is $341.04 and its 200-day simple moving average is $339.54. The company has a market capitalization of $337.00 billion, a P/E ratio of 23.65, a P/E/G ratio of 3.72 and a beta of 0.95.

Home Depot (NYSE:HD - Get Free Report) last posted its 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. Home Depot had a net margin of 8.41% and a return on equity of 106.42%. The firm had revenue of $47.86 billion for the quarter, compared to the consensus estimate of $47.24 billion. During the same period in the prior year, the business posted $4.68 earnings per share. The business's quarterly revenue was up 5.7% on a year-over-year basis. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. Sell-side analysts forecast that The Home Depot, Inc. will post 14.99 earnings per share for the current fiscal year.

Home Depot Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 17th. Investors of record on Thursday, September 3rd will be paid a $2.33 dividend. The ex-dividend date is Thursday, September 3rd. This represents a $9.32 dividend on an annualized basis and a yield of 2.8%. Home Depot's dividend payout ratio (DPR) is presently 65.22%.

Insider Buying and Selling

In other Home Depot news, CFO Richard V. Mcphail sold 5,989 shares of the business's stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $348.40, for a total transaction of $2,086,567.60. Following the completion of the transaction, the chief financial officer 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.08% of the stock is owned by company insiders.

Home Depot News Roundup

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

Analyst Ratings Changes

A number of brokerages have weighed in on HD. Citigroup cut their price target on shares of Home Depot from $450.00 to $400.00 and set a "buy" rating for the company in a report on Tuesday, May 12th. Royal Bank Of Canada dropped their target price on shares of Home Depot from $343.00 to $342.00 and set a "sector perform" rating on the stock in a report on Wednesday, August 19th. Guggenheim reissued a "buy" rating and set a $425.00 target price on shares of Home Depot in a research note on Wednesday, August 19th. JPMorgan Chase & Co. dropped their price target on Home Depot from $423.00 to $396.00 and set an "overweight" rating on the stock in a report on Wednesday, May 20th. Finally, Telsey Advisory Group cut their price objective on Home Depot from $435.00 to $410.00 and set an "outperform" rating for the company in a research report on Wednesday, May 20th. Eighteen analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $375.54.

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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