Legal & General Group Plc Makes New $1.95 Billion Investment in The Home Depot, Inc. $HD

Key Points

• Legal & General Group Plc acquired 5.54 million Home Depot shares worth approximately $1.95 billion in the second quarter, giving it a 0.56% stake. Institutional investors collectively own 70.86% of the company.
• Home Depot exceeded quarterly expectations, reporting $4.92 EPS and $47.86 billion in revenue, with revenue up 5.7% year over year. The company also declared a quarterly dividend of $2.33 per share, representing a 2.8% annualized yield.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $375.54, although several firms recently lowered their targets. Meanwhile, insiders sold 9,154 shares worth about $3.13 million over the past three months.

Legal & General Group Plc bought a new stake in The Home Depot, Inc. (NYSE:HD - Free Report) in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund bought 5,540,102 shares of the home improvement retailer's stock, valued at approximately $1,953,883,000. Legal & General Group Plc owned 0.56% of Home Depot at the end of the most recent quarter.

Several other large investors also recently modified their holdings of HD. Advocate Investing Services LLC bought a new position in shares of Home Depot during the 4th quarter valued at about $25,000. Zeit Capital LLC bought a new stake in Home Depot during the 2nd quarter worth approximately $26,000. Parvin Asset Management LLC raised its holdings in Home Depot by 110.0% during the 3rd quarter. Parvin Asset Management LLC now owns 63 shares of the home improvement retailer's stock worth $26,000 after buying an additional 33 shares during the period. Cache Advisors LLC acquired a new stake in Home Depot during the 1st quarter worth approximately $27,000. Finally, Merkkuri Wealth Advisors LLC acquired a new stake in Home Depot during the 1st quarter worth approximately $28,000. 70.86% of the stock is currently owned by institutional investors.

Home Depot Price Performance

Shares of HD opened at $328.52 on Tuesday. The stock has a market capitalization of $327.76 billion, a P/E ratio of 22.99, a P/E/G ratio of 3.64 and a beta of 0.95. The Home Depot, Inc. has a twelve month low of $289.10 and a twelve month high of $426.75. The company has a 50 day moving average of $341.00 and a 200-day moving average of $338.03. The company has a quick ratio of 0.31, a current ratio of 1.08 and a debt-to-equity ratio of 2.64.

Home Depot (NYSE:HD - Get Free Report) last posted its quarterly earnings data 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 net margin of 8.41% and a return on equity of 106.42%. The company 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 earnings per share. 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. As a group, equities research analysts forecast that The Home Depot, Inc. will post 15 EPS for the current fiscal year.

Home Depot Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 17th. Shareholders of record on Thursday, September 3rd will be given 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 yield of 2.8%. Home Depot's payout ratio is 65.22%.

Analyst Ratings Changes

Several research firms have recently weighed in on HD. Royal Bank Of Canada reduced their price target on shares of Home Depot from $343.00 to $342.00 and set a "sector perform" rating for the company in a report on Wednesday, August 19th. HSBC dropped their price objective on shares of Home Depot from $392.00 to $310.00 and set a "hold" rating on the stock in a report on Wednesday, May 20th. Argus reaffirmed a "buy" rating and issued a $400.00 target price on shares of Home Depot in a research note on Wednesday, August 19th. JPMorgan Chase & Co. reduced their target price on shares of Home Depot from $423.00 to $396.00 and set an "overweight" rating for the company in a research note on Wednesday, May 20th. Finally, Wall Street Zen upgraded Home Depot from a "sell" rating to a "hold" rating in a report on Tuesday, June 2nd. Eighteen research 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 stock has an average rating of "Moderate Buy" and an average price target of $375.54.

Insiders Place Their Bets

In related news, EVP Michael F. Rowe sold 710 shares of Home Depot stock in a transaction dated Wednesday, August 26th. The stock was sold at an average price of $336.76, for a total value of $239,099.60. Following the sale, the executive vice president owned 6,838 shares of the company's stock, valued at approximately $2,302,764.88. The trade was a 9.41% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Richard V. Mcphail sold 5,989 shares of the company's 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 sale, the chief financial officer owned 48,104 shares in the company, valued at $16,759,433.60. The trade was a 11.07% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 9,154 shares of company stock valued at $3,132,798 in the last three months. 0.08% of the stock is currently owned by corporate insiders.

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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