Magellan Asset Management Ltd Acquires New Position in The Home Depot, Inc. $HD

Key Points

• Magellan Asset Management initiated a Home Depot position of 14,775 shares worth approximately $5.2 million in the second quarter. Institutional investors and hedge funds collectively own 70.86% of the company.
• Home Depot reported quarterly earnings of $4.92 per share on $47.86 billion in revenue, beating estimates and representing 5.7% year-over-year revenue growth. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $375.54.
• Company executives recently sold shares, including CFO Richard McPhail’s approximately $2.1 million sale and EVP Michael Rowe’s roughly $239,000 sale. Home Depot also declared a quarterly dividend of $2.33 per share, equivalent to a 2.8% annual yield.

Magellan Asset Management Ltd bought a new position in The Home Depot, Inc. (NYSE:HD - Free Report) during the second quarter, according to its most recent Form 13F filing with the SEC. The firm bought 14,775 shares of the home improvement retailer's stock, valued at approximately $5,211,000.

Other institutional investors and hedge funds have also made changes to their positions in the company. Gator Capital Management LLC purchased a new stake in Home Depot during the 4th quarter valued at approximately $3,693,000. King Luther Capital Management Corp grew its stake in shares of Home Depot by 0.6% in the 4th 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 purchasing an additional 7,180 shares during the last quarter. E Fund Management Co. Ltd. acquired a new position in shares of Home Depot in the second quarter valued at approximately $3,915,000. Thompson Siegel & Walmsley LLC increased its holdings in shares of Home Depot by 320.4% in the fourth quarter. Thompson Siegel & Walmsley LLC now owns 11,292 shares of the home improvement retailer's stock valued at $3,886,000 after purchasing an additional 8,606 shares during the period. Finally, Sarasin & Partners LLP raised its stake in shares of Home Depot by 4.0% during the second quarter. Sarasin & Partners LLP now owns 687,219 shares of the home improvement retailer's stock worth $242,368,000 after purchasing an additional 26,357 shares during the last quarter. 70.86% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In related news, CFO Richard V. Mcphail sold 5,989 shares of the firm's stock in a transaction dated Wednesday, August 19th. The shares were 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 $16,759,433.60. This trade represents 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 available at this link. Also, EVP Michael F. Rowe sold 710 shares of the business's stock in a transaction dated Wednesday, August 26th. The stock was sold at an average price of $336.76, for a total transaction of $239,099.60. Following the sale, the executive vice president directly owned 6,838 shares in the company, valued at approximately $2,302,764.88. This represents a 9.41% decrease in their position. The SEC filing for this sale provides additional information. 0.08% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on HD shares. Wells Fargo & Company increased their price target on Home Depot from $360.00 to $400.00 and gave the stock an "overweight" rating in a report on Tuesday, August 11th. Stifel Nicolaus upped their price objective on shares of Home Depot from $320.00 to $340.00 and gave the stock a "hold" rating in a research report on Monday, August 17th. Piper Sandler reduced their target price on shares of Home Depot from $422.00 to $421.00 and set an "overweight" rating for the company in a research note on Wednesday, May 20th. Morgan Stanley dropped their price target on shares of Home Depot from $420.00 to $400.00 and set an "overweight" rating on the stock in a research note on Wednesday, May 20th. Finally, JPMorgan Chase & Co. cut their price target on shares of Home Depot from $423.00 to $396.00 and set an "overweight" rating for the company in a report on Wednesday, May 20th. Eighteen investment analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $375.54.

Key Home Depot News

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

• Positive Sentiment: Home Depot reported fiscal second-quarter sales of $47.86 billion, up 5.7% year over year and its strongest comparable-sales growth since 2022. Adjusted earnings of $4.92 per share exceeded the $4.73 analyst consensus, reinforcing the view that the retailer’s turnaround is gaining traction. The Home Depot Posts Record Sales Growth Amid CEO Leave
• Positive Sentiment: The company expanded its Magic Apron AI shopping assistant to every U.S. store. The tool provides localized product information, project guidance and store navigation through text, voice, images and multiple languages. Its potential to improve customer service, employee productivity and conversion rates supports the long-term growth narrative. The Home Depot Expands Magic Apron
• Neutral Sentiment: Analysts and recent commentary see significant upside if housing and remodeling demand recover, with Home Depot’s scale and professional-customer base viewed as competitive advantages. However, the stock remains below its 50-day and 200-day moving averages, indicating that investors have not fully embraced the turnaround thesis. Home Depot Turnaround Could Be Bigger Than Investors Expect
• Neutral Sentiment: Although Home Depot beat quarterly estimates, a reported $685 million tariff refund may have boosted results. Investors could discount part of the earnings strength if the benefit is viewed as nonrecurring. Home Depot Beat Q2 Estimates
• Negative Sentiment: CEO Ted Decker is on temporary medical leave, creating uncertainty around leadership even as operating performance improves. Separately, EVP Michael Rowe sold 710 shares valued at approximately $239,100, a relatively small transaction but a modest negative sentiment signal. Home Depot EVP Michael Rowe Sells Shares

Home Depot Trading Up 0.4%

Shares of HD stock opened at $329.80 on Friday. The business's fifty day moving average price is $340.97 and its 200 day moving average price is $338.75. The firm has a market capitalization of $329.04 billion, a PE ratio of 23.08, a P/E/G ratio of 3.64 and a beta of 0.95. 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 Home Depot, Inc. has a 1-year low of $289.10 and a 1-year high of $426.75.

Home Depot (NYSE:HD - Get Free Report) last released its earnings results on Tuesday, August 18th. The home improvement retailer reported $4.92 EPS for the quarter, beating analysts' consensus estimates of $4.73 by $0.19. The company had revenue of $47.86 billion during the quarter, compared to the consensus estimate of $47.24 billion. Home Depot had a return on equity of 106.42% and a net margin of 8.41%.Home Depot's quarterly revenue was up 5.7% compared to the same quarter last year. During the same quarter last year, the company earned $4.68 earnings per share. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. As a group, sell-side analysts forecast that The Home Depot, Inc. will post 15 EPS for the current fiscal year.

Home Depot Announces Dividend

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