Hollencrest Capital Management Trims Stock Position in The Home Depot, Inc. $HD

Key Points

• Hollencrest Capital Management cut its Home Depot stake by 98.2% in the second quarter, selling 99,850 shares and retaining 1,815 shares valued at approximately $640,000. Institutional investors collectively own 70.86% of the company.
• Analysts maintain a generally positive view, with 18 Buy, 13 Hold and one Sell rating, resulting in a “Moderate Buy” consensus and an average price target of $375.54.
• Home Depot exceeded quarterly expectations, reporting $4.92 EPS and $47.86 billion in revenue, up 5.7% year over year. However, housing-market weakness, elevated mortgage rates and recent insider selling remain concerns; the stock opened at $317.79, while the company declared a quarterly dividend of $2.33 per share.

Hollencrest Capital Management lessened its stake in The Home Depot, Inc. (NYSE:HD - Free Report) by 98.2% in the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 1,815 shares of the home improvement retailer's stock after selling 99,850 shares during the quarter. Hollencrest Capital Management's holdings in Home Depot were worth $640,000 as of its most recent SEC filing.

A number of other hedge funds have also recently modified their holdings of the stock. BlackRock Inc. purchased a new position in Home Depot during the second quarter valued at approximately $28,771,247,000. State Street Corp boosted its position in Home Depot by 1.8% in the 4th quarter. State Street Corp now owns 46,925,342 shares of the home improvement retailer's stock worth $16,147,010,000 after purchasing an additional 825,164 shares in the last quarter. Geode Capital Management LLC boosted its position in Home Depot by 1.5% in the 4th quarter. Geode Capital Management LLC now owns 23,756,142 shares of the home improvement retailer's stock worth $8,151,344,000 after purchasing an additional 343,153 shares in the last quarter. Bank of America Corp DE acquired a new stake in shares of Home Depot during the 2nd quarter worth approximately $5,780,468,000. Finally, Charles Schwab Investment Management Inc. grew its stake in shares of Home Depot by 7.8% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 15,471,132 shares of the home improvement retailer's stock worth $5,323,620,000 after purchasing an additional 1,113,114 shares during the period. Hedge funds and other institutional investors own 70.86% of the company's stock.

Wall Street Analyst Weigh In

HD has been the subject of several analyst reports. Wells Fargo & Company boosted their target price on shares of Home Depot from $360.00 to $400.00 and gave the company an "overweight" rating in a research note on Tuesday, August 11th. Telsey Advisory Group dropped their price target on shares of Home Depot from $435.00 to $410.00 and set an "outperform" rating on the stock in a research report on Wednesday, May 20th. BNP Paribas Exane cut their price objective on shares of Home Depot from $348.00 to $325.00 and set a "neutral" rating for the company in a report on Tuesday, May 19th. Royal Bank Of Canada decreased their price objective on shares of Home Depot from $343.00 to $342.00 and set a "sector perform" rating for the company in a research report on Wednesday, August 19th. Finally, Piper Sandler lowered their target price on shares of Home Depot from $422.00 to $421.00 and set an "overweight" rating on the stock in a research note on Wednesday, May 20th. Eighteen analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Home Depot currently has an average rating of "Moderate Buy" and a consensus price target of $375.54.

Trending Headlines about Home Depot

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

• Positive Sentiment: Home Depot’s professional-customer growth and technology investments could support a recovery. The company has expanded its AI-powered Magic Apron tools across U.S. stores, while one analysis argues the stock may be about 15% undervalued if its Pro business gains momentum. Home Depot Could Be 15% Undervalued on Its Pro Growth Narrative
• Neutral Sentiment: Zacks Research raised its fiscal 2027 EPS forecast slightly to $15.03 from $14.95, broadly matching the current consensus estimate of $15.00. However, this isolated increase was accompanied by several reductions to later quarterly and annual forecasts. Home Depot Analyst Estimates
• Neutral Sentiment: Recent operating results remain a support for the shares: Home Depot exceeded quarterly earnings and revenue expectations, with revenue up 5.7% year over year. The key concern is whether that growth can accelerate amid a weak housing environment.
• Negative Sentiment: Mortgage rates have reached a one-year high following a global bond sell-off. Higher borrowing costs can discourage home purchases, renovations and moves, limiting demand for big-ticket projects at Home Depot and Lowe’s. Mortgage Rates Just Hit a One-Year High
• Negative Sentiment: Homeowners remain locked into older, cheaper mortgages, and the probability of moving within 12 months has fallen to a record-low 13.5%. Home Depot reportedly sees “no sign” of a housing turnaround, pressuring near-term sales prospects. Americans Stop Moving as Mortgage Lock-In Persists
• Negative Sentiment: Analysts have cut multiple future EPS estimates, including fiscal 2028 EPS to $16.05 from $16.23 and fiscal 2029 EPS to $17.41 from $17.62. The revisions suggest slower expected growth and weigh on valuation. The Gap Between HD Stock and Its Own Numbers
• Negative Sentiment: Comparisons with Costco and Lowe’s highlight concerns about Home Depot’s relative performance, dividend coverage and competitive position. Bearish options activity, including a proposed bear put spread, further reflects expectations that the stock could remain under pressure. Home Depot Bear Put Spread Could Return 181 Percent

Insider Activity

In related news, EVP Teresa Roseborough sold 2,455 shares of the firm's stock in a transaction dated Friday, August 28th. The shares were sold at an average price of $328.77, for a total value of $807,130.35. Following the transaction, the executive vice president directly owned 14,061 shares of the company's stock, valued at approximately $4,622,834.97. This trade represents a 14.86% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Richard V. Mcphail sold 5,989 shares of Home Depot stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $348.40, for a total value of $2,086,567.60. Following the completion of the sale, 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. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 9,154 shares of company stock worth $3,132,798 over the last 90 days. 0.08% of the stock is currently owned by company insiders.

Home Depot Stock Down 0.2%

Home Depot stock opened at $317.79 on Friday. The company has a debt-to-equity ratio of 2.64, a current ratio of 1.08 and a quick ratio of 0.31. The stock has a market capitalization of $317.06 billion, a PE ratio of 22.24, a price-to-earnings-growth ratio of 3.51 and a beta of 0.95. The business has a 50 day simple moving average of $339.90 and a 200-day simple moving average of $336.51. The Home Depot, Inc. has a 12 month low of $289.10 and a 12 month high of $426.75.

Home Depot (NYSE:HD - Get Free Report) last announced its earnings results on Tuesday, August 18th. The home improvement retailer reported $4.92 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.73 by $0.19. Home Depot had a return on equity of 106.42% and a net margin of 8.41%.The firm had revenue of $47.86 billion for the quarter, compared to analyst estimates of $47.24 billion. During the same quarter last year, the firm posted $4.68 EPS. The business's 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. On average, analysts anticipate that The Home Depot, Inc. will post 15 EPS for the current fiscal year.

Home Depot Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 17th. Shareholders of record on Thursday, September 3rd will be issued a dividend of $2.33 per share. This represents a $9.32 annualized dividend and a yield of 2.9%. The ex-dividend date of this dividend is Thursday, September 3rd. Home Depot's dividend payout ratio (DPR) is presently 65.22%.

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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