HBK Sorce Advisory LLC Invests $5.32 Million in The Home Depot, Inc. $HD

Key Points

• HBK Sorce Advisory initiated a $5.32 million Home Depot position by purchasing 15,056 shares in the second quarter. Institutional investors collectively own about 70.86% of the company.
• Home Depot exceeded quarterly expectations, reporting $4.92 EPS and $47.86 billion in revenue, up 5.7% year over year. The company also declared a $2.33 quarterly dividend, representing an annualized yield of approximately 2.8%.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and $375.54 average price target, although some targets were reduced and margin pressure remains a concern. CFO Richard McPhail also sold approximately $2.1 million worth of shares.

HBK Sorce Advisory LLC acquired a new position in shares of The Home Depot, Inc. (NYSE:HD - Free Report) in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor acquired 15,056 shares of the home improvement retailer's stock, valued at approximately $5,317,000.

A number of other hedge funds and other institutional investors have also modified their holdings of HD. Advocate Investing Services LLC bought a new position in Home Depot in the fourth quarter valued at approximately $25,000. Zeit Capital LLC bought a new stake in shares of Home Depot during the 2nd quarter worth approximately $26,000. Parvin Asset Management LLC boosted its holdings in shares of 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 buying an additional 33 shares during the last quarter. Cache Advisors LLC acquired a new stake in shares of Home Depot in the 1st quarter valued at approximately $27,000. Finally, Merkkuri Wealth Advisors LLC bought a new position in shares of Home Depot in the first quarter valued at $28,000. Institutional investors and hedge funds 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’s latest quarter showed solid execution: earnings and revenue exceeded consensus estimates, while sales increased year over year. Bank of America characterized the results as resilient despite a difficult housing backdrop. Home Depot Q2 results analysis
• Positive Sentiment: The board declared a quarterly dividend of $2.33 per share, payable September 17 to shareholders of record September 3. The annualized payout implies a yield of approximately 2.8%, supporting the stock’s income appeal. Home Depot declares quarterly dividend
• Positive Sentiment: DA Davidson, Argus and Guggenheim reiterated or assigned “Buy” ratings, indicating continued confidence in Home Depot’s long-term positioning. The company is also expanding nationwide express delivery to make smaller projects more convenient for cautious consumers. DA Davidson buy rating Home Depot expands express delivery
• Neutral Sentiment: Royal Bank of Canada lowered its price target to $342, while KeyCorp maintained a Sector Weight rating. The mixed recommendations suggest limited near-term upside despite the earnings beat. RBC lowers Home Depot price target
• Neutral Sentiment: Home Depot expanded executive responsibilities and awarded restricted stock, changes intended to support leadership continuity but with no immediate earnings impact. Home Depot executive changes
• Negative Sentiment: Reports highlight margin pressure and an uphill sales environment as customers delay or reduce spending on major renovations. This could constrain comparable sales and profitability even after the recent quarterly beat. Home Depot margin pressure Home Depot customer spending concerns
• Negative Sentiment: CFO Richard McPhail sold 5,989 shares worth approximately $2.1 million, reducing his position by 11.1%. While insider sales do not necessarily signal deteriorating fundamentals, the transaction may weigh modestly on sentiment. Home Depot CFO stock sale

Insider Activity

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 transaction of $2,086,567.60. Following the transaction, the chief financial officer owned 48,104 shares in the company, valued at approximately $16,759,433.60. The trade was a 11.07% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.08% of the company's stock.

Analyst Ratings Changes

A number of research analysts have recently commented on HD shares. The Goldman Sachs Group decreased their price objective on shares of Home Depot from $409.00 to $390.00 and set a "buy" rating for the company in a research report on Wednesday, May 20th. Stifel Nicolaus boosted their target price on shares of Home Depot from $320.00 to $340.00 and gave the company a "hold" rating in a research report on Monday, August 17th. Morgan Stanley dropped their price objective on Home Depot from $420.00 to $400.00 and set an "overweight" rating for the company in a report on Wednesday, May 20th. Argus reaffirmed a "buy" rating and set a $400.00 price target on shares of Home Depot in a report on Wednesday. Finally, Weiss Ratings upgraded Home Depot from a "hold (c-)" rating to a "hold (c)" rating in a research report on Tuesday, July 7th. Eighteen analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $375.54.

Home Depot Stock Performance

Home Depot stock opened at $336.04 on Friday. The business has a 50 day moving average of $340.86 and a 200-day moving average of $340.46. The Home Depot, Inc. has a 1 year low of $289.10 and a 1 year high of $426.75. The company has a debt-to-equity ratio of 2.64, a current ratio of 1.08 and a quick ratio of 0.28. The company has a market capitalization of $335.07 billion, a P/E ratio of 23.52, a P/E/G ratio of 3.70 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 business had revenue of $47.86 billion for the quarter, compared to the consensus estimate of $47.24 billion. During the same period last year, the company earned $4.68 EPS. The firm's revenue was up 5.7% compared to the same quarter last year. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. On average, equities research analysts predict that The Home Depot, Inc. will post 14.99 earnings per share for the current year.

Home Depot Announces Dividend

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

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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