Geode Capital Management LLC Increases Stake in The Home Depot, Inc. $HD

Key Points

• Geode Capital Management increased its Home Depot stake by 1.5% in the fourth quarter, adding 343,153 shares and bringing its total holdings to 23.76 million shares valued at about $8.15 billion.
• Home Depot reported a slight earnings beat with $3.43 EPS versus $3.41 expected, and revenue of $41.77 billion that was up 4.8% year over year. The company also said U.S. same-store sales grew for a sixth straight quarter, signaling demand may be stabilizing.
• Analysts remain generally constructive, with 20 Buy ratings and a consensus Moderate Buy rating, while Home Depot also announced a quarterly dividend of $2.33 per share payable June 18, implying a 2.9% yield.

Geode Capital Management LLC lifted its stake in shares of The Home Depot, Inc. (NYSE:HD - Free Report) by 1.5% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 23,756,142 shares of the home improvement retailer's stock after buying an additional 343,153 shares during the quarter. Home Depot comprises 0.5% of Geode Capital Management LLC's portfolio, making the stock its 24th largest position. Geode Capital Management LLC owned approximately 2.39% of Home Depot worth $8,151,344,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds and other institutional investors also recently modified their holdings of the stock. King Luther Capital Management Corp increased its position in shares of Home Depot by 0.6% during the fourth quarter. King Luther Capital Management Corp now owns 1,240,478 shares of the home improvement retailer's stock valued at $426,848,000 after buying an additional 7,180 shares during the period. Key Financial Inc increased its position in shares of Home Depot by 2.2% during the fourth quarter. Key Financial Inc now owns 2,940 shares of the home improvement retailer's stock valued at $1,012,000 after buying an additional 62 shares during the period. Steel Grove Capital Advisors LLC increased its position in shares of Home Depot by 41.3% during the fourth quarter. Steel Grove Capital Advisors LLC now owns 2,660 shares of the home improvement retailer's stock valued at $915,000 after buying an additional 777 shares during the period. GHE LLC purchased a new position in shares of Home Depot during the fourth quarter valued at about $788,000. Finally, TrustBank purchased a new position in shares of Home Depot during the fourth quarter valued at about $1,762,000. Hedge funds and other institutional investors own 70.86% of the company's stock.

Key Headlines Impacting Home Depot

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

• Positive Sentiment: TD Cowen said Home Depot delivered solid execution in a challenging market, and although it trimmed its price target, it reiterated a Buy rating, which can help reinforce confidence in the stock. A Bright Spot in Home Depot’s Earnings
• Positive Sentiment: Home Depot’s latest results showed a modest earnings beat and continued strength in its Pro segment, while U.S. same-store sales posted a sixth straight quarter of growth, supporting the view that demand is stabilizing. Home Depot Sales Recovery And Mingledorff’s Deal Strengthen Pro Growth Story
• Positive Sentiment: Home Depot’s acquisition of Mingledorff’s expands its reach in HVAC distribution and deepens its exposure to professional customers, which investors may see as a long-term growth driver. Home Depot Sales Recovery And Mingledorff’s Deal Strengthen Pro Growth Story

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on HD shares. Wall Street Zen cut shares of Home Depot from a "hold" rating to a "sell" rating in a research report on Monday. Guggenheim reiterated a "buy" rating and set a $425.00 price target on shares of Home Depot in a research report on Wednesday, May 20th. The Goldman Sachs Group reduced their price target on shares of Home Depot from $409.00 to $390.00 and set a "buy" rating on the stock in a research report on Wednesday, May 20th. Piper Sandler reduced their price target on shares of Home Depot from $422.00 to $421.00 and set an "overweight" rating on the stock in a research report on Wednesday, May 20th. Finally, KeyCorp reissued a "sector weight" rating on shares of Home Depot in a research note on Wednesday, February 25th. Twenty research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $371.39.

Insider Buying and Selling

In related news, CFO Richard V. Mcphail sold 2,550 shares of the business's stock in a transaction dated Wednesday, March 4th. The shares were 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 $16,439,951.74. The trade was a 5.41% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 0.08% of the stock is owned by insiders.

Home Depot Trading Up 2.5%

NYSE:HD opened at $318.27 on Thursday. The Home Depot, Inc. has a one year low of $289.10 and a one year high of $426.75. The company has a debt-to-equity ratio of 3.23, a current ratio of 1.04 and a quick ratio of 0.28. The company's 50-day simple moving average is $325.37 and its 200 day simple moving average is $350.33. The firm has a market capitalization of $317.00 billion, a P/E ratio of 22.60, a PEG ratio of 3.58 and a beta of 1.00.

Home Depot (NYSE:HD - Get Free Report) last posted its quarterly earnings data on Tuesday, May 19th. The home improvement retailer reported $3.43 EPS for the quarter, topping the consensus estimate of $3.41 by $0.02. Home Depot had a net margin of 8.41% and a return on equity of 117.24%. The business had revenue of $41.77 billion for the quarter, compared to analyst estimates of $41.59 billion. During the same quarter in the previous year, the firm posted $3.56 earnings per share. Home Depot's quarterly revenue was up 4.8% on a year-over-year basis. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. As a group, analysts forecast that The Home Depot, Inc. will post 15.02 EPS for the current fiscal year.

Home Depot Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, June 18th. Investors of record on Thursday, June 4th will be paid a dividend of $2.33 per share. The ex-dividend date of this dividend is Thursday, June 4th. This represents a $9.32 annualized dividend and a yield of 2.9%. Home Depot's payout ratio is presently 66.19%.

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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