Guardian Capital LLC Acquires Shares of 7,895 The Home Depot, Inc. $HD

Key Points

• Guardian Capital LLC disclosed a new fourth-quarter stake in Home Depot, buying 7,895 shares valued at about $2.7 million. The position makes HD its 11th-largest holding and about 2.4% of its portfolio.
• Home Depot remains widely held by institutions, with about 70.86% of shares owned by hedge funds and other institutional investors. Meanwhile, CFO Richard V. Mcphail sold 2,550 shares in a March 4 transaction.
• Wall Street sentiment is mixed but still constructive: analysts currently rate the stock Moderate Buy on average with a target price of $405.66. Home Depot also recently raised its quarterly dividend to $2.33 per share, even as the stock has come under pressure from housing-market concerns and a class-action lawsuit.

Guardian Capital LLC acquired a new stake in shares of The Home Depot, Inc. (NYSE:HD - Free Report) during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 7,895 shares of the home improvement retailer's stock, valued at approximately $2,717,000. Home Depot accounts for 2.4% of Guardian Capital LLC's investment portfolio, making the stock its 11th largest holding.

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in HD. Parvin Asset Management LLC raised its position in Home Depot by 110.0% during the third 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 during the period. Key Capital Management INC purchased a new stake in Home Depot during the fourth quarter valued at approximately $28,000. Financially Speaking Inc purchased a new stake in Home Depot during the third quarter valued at approximately $31,000. Navalign LLC purchased a new stake in Home Depot during the fourth quarter valued at approximately $31,000. Finally, Disciplined Equity Management Inc. purchased a new stake in Home Depot during the fourth quarter valued at approximately $34,000. 70.86% of the stock is currently owned by hedge funds and other institutional investors.

Insider Transactions at Home Depot

In related news, CFO Richard V. Mcphail sold 2,550 shares of the stock in a transaction that occurred on Wednesday, March 4th. The stock was sold at an average price of $368.89, for a total value of $940,669.50. Following the transaction, the chief financial officer owned 44,566 shares of the company's stock, valued at $16,439,951.74. This represents a 5.41% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 0.08% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on the company. Robert W. Baird upped their price objective on Home Depot from $400.00 to $430.00 and gave the company an "outperform" rating in a research report on Tuesday, February 17th. KeyCorp reaffirmed a "sector weight" rating on shares of Home Depot in a research note on Wednesday, February 25th. Evercore cut their target price on Home Depot from $425.00 to $415.00 and set an "outperform" rating on the stock in a research note on Tuesday, March 31st. Daiwa Securities Group upped their target price on Home Depot from $360.00 to $390.00 and gave the company a "neutral" rating in a research note on Thursday, February 26th. Finally, Guggenheim upped their target price on Home Depot from $400.00 to $425.00 and gave the company a "buy" rating in a research note on Wednesday, February 25th. Twenty analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $405.66.

Home Depot News Summary

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

• Positive Sentiment: Telsey Advisory reiterated a Buy rating on Home Depot, suggesting at least one Wall Street firm still sees value in the shares despite recent volatility.
• Positive Sentiment: Some commentary has highlighted Home Depot as a potential beneficiary if housing turnover and mortgage-rate conditions improve, which could support future sales and earnings.
• Neutral Sentiment: Investors are watching Home Depot closely ahead of earnings on May 19, with articles focusing on whether pro demand, digital tools, and repair projects can offset a weaker housing backdrop.
• Neutral Sentiment: Jim Cramer said Home Depot can perform well in a lower-rate environment, but also noted the stock needs stronger housing turnover to really accelerate.
• Negative Sentiment: Sanford C. Bernstein cut its price target on Home Depot to $365 from $390 and kept a Market Perform rating, reflecting a more cautious view on near-term upside.
• Negative Sentiment: A new class-action lawsuit reportedly pressured the stock, adding legal uncertainty at an already sensitive time for investors.
• Negative Sentiment: Recent pre-earnings pullback and broader worries about housing turnover have also weighed on sentiment, helping explain why Home Depot stock has been moving lower.

Home Depot Stock Down 2.3%

Shares of NYSE:HD opened at $297.34 on Friday. The Home Depot, Inc. has a 52-week low of $296.88 and a 52-week high of $426.75. The stock has a market cap of $296.16 billion, a P/E ratio of 20.90, a price-to-earnings-growth ratio of 3.43 and a beta of 1.00. The business's 50 day moving average is $331.77 and its 200 day moving average is $354.39. The company has a quick ratio of 0.26, a current ratio of 1.06 and a debt-to-equity ratio of 3.62.

Home Depot (NYSE:HD - Get Free Report) last announced its quarterly earnings data on Tuesday, February 24th. The home improvement retailer reported $2.72 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.52 by $0.20. Home Depot had a return on equity of 134.32% and a net margin of 8.60%.The company had revenue of $38.20 billion for the quarter, compared to analysts' expectations of $38.01 billion. During the same quarter in the prior year, the firm earned $3.13 earnings per share. Home Depot's revenue was down 3.8% compared to the same quarter last year. Home Depot has set its FY 2026 guidance at 14.230-14.799 EPS. Sell-side analysts predict that The Home Depot, Inc. will post 15.03 EPS for the current year.

Home Depot Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, March 26th. Investors of record on Thursday, March 12th were paid a $2.33 dividend. This represents a $9.32 annualized dividend and a yield of 3.1%. This is an increase from Home Depot's previous quarterly dividend of $2.30. The ex-dividend date of this dividend was Thursday, March 12th. Home Depot's payout ratio is currently 65.50%.

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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