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

Key Points

• Magellan Asset Management dramatically increased its Home Depot stake in the fourth quarter, boosting holdings by 5,678.3% to 10,401 shares valued at about $3.58 million.
• Institutional interest in Home Depot remains strong overall, with large investors like Vanguard, Geode Capital, and Norges Bank also adding or initiating positions; hedge funds and other institutional investors now own 70.86% of the stock.
• Home Depot reported better-than-expected quarterly results, with EPS of $3.43 and revenue of $41.77 billion, while analysts still maintain a Moderate Buy consensus and average price target of $371.36 despite some recent target cuts.

Magellan Asset Management Ltd grew its position in The Home Depot, Inc. (NYSE:HD - Free Report) by 5,678.3% in the 4th quarter, according to its most recent disclosure with the SEC. The fund owned 10,401 shares of the home improvement retailer's stock after buying an additional 10,221 shares during the period. Magellan Asset Management Ltd's holdings in Home Depot were worth $3,579,000 as of its most recent SEC filing.

Several other large investors have also bought and sold shares of the company. Vanguard Group Inc. raised its holdings in Home Depot by 1.3% in the fourth quarter. Vanguard Group Inc. now owns 99,635,779 shares of the home improvement retailer's stock worth $34,284,672,000 after buying an additional 1,325,748 shares during the last quarter. Geode Capital Management LLC raised its holdings in Home Depot by 1.5% in the fourth quarter. Geode Capital Management LLC now owns 23,756,142 shares of the home improvement retailer's stock worth $8,151,344,000 after buying an additional 343,153 shares during the last quarter. Norges Bank purchased a new position in Home Depot in the fourth quarter worth about $4,850,329,000. Capital Research Global Investors raised its holdings in Home Depot by 0.3% in the third quarter. Capital Research Global Investors now owns 11,400,133 shares of the home improvement retailer's stock worth $4,619,229,000 after buying an additional 30,739 shares during the last quarter. Finally, Wellington Management Group LLP raised its holdings in Home Depot by 60.8% in the third quarter. Wellington Management Group LLP now owns 10,143,089 shares of the home improvement retailer's stock worth $4,109,878,000 after buying an additional 3,836,051 shares during the last quarter. 70.86% of the stock is owned by hedge funds and other institutional investors.

Home Depot News Summary

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

• Negative Sentiment: A TipRanks article says Home Depot is slipping as a new major competitor emerges, adding to concerns that the company may face more pricing and traffic pressure in an already challenging market. Home Depot Stock NYSE: HD Slips as New Major Competitor Emerges
• Neutral Sentiment: Jefferies slightly lowered its price target on Home Depot to $360 from $361 while keeping a Buy rating, signaling continued analyst support even though the stock may have limited near-term upside from current levels. Jefferies Adjusts Price Target on Home Depot to $360 From $361, Maintains Buy Rating
• Neutral Sentiment: Recent commentary from The Motley Fool highlighted that Home Depot remains a cyclical business tied to household balance sheets and consumer confidence, but also noted its strength with professional customers, suggesting a mixed outlook rather than a clear catalyst. 3 Things to Know About Home Depot Stock Before You Buy
• Positive Sentiment: Analyst coverage and recent articles have pointed to meaningful upside potential for Home Depot (HD) if valuation support and better housing trends materialize, which could help limit downside and attract dip buyers. How High Can Home Depot’s Stock (HD) Price Rise?

Home Depot Stock Performance

Shares of HD stock opened at $310.30 on Friday. The company has a 50 day moving average price of $323.38 and a 200-day moving average price of $348.00. The company has a quick ratio of 0.28, a current ratio of 1.04 and a debt-to-equity ratio of 3.23. The firm has a market capitalization of $309.41 billion, a PE ratio of 22.04, a P/E/G ratio of 3.61 and a beta of 0.97. The Home Depot, Inc. has a 52 week low of $289.10 and a 52 week high of $426.75.

Home Depot (NYSE:HD - Get Free Report) last announced its earnings results on Tuesday, May 19th. The home improvement retailer reported $3.43 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.41 by $0.02. The company had revenue of $41.77 billion during the quarter, compared to analyst estimates of $41.59 billion. Home Depot had a net margin of 8.41% and a return on equity of 117.24%. The firm's quarterly revenue was up 4.8% compared to the same quarter last year. During the same period in the previous year, the business posted $3.56 earnings per share. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. As a group, equities research analysts expect that The Home Depot, Inc. will post 15.01 earnings per share for the current year.

Home Depot Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, June 18th. Investors of record on Thursday, June 4th will be given a dividend of $2.33 per share. This represents a $9.32 annualized dividend and a yield of 3.0%. The ex-dividend date is Thursday, June 4th. Home Depot's payout ratio is 66.19%.

Analysts Set New Price Targets

A number of brokerages have recently commented on HD. UBS Group reduced their price target on shares of Home Depot from $450.00 to $430.00 and set a "buy" rating for the company in a research note on Wednesday, May 20th. Daiwa Securities Group lifted their price target on shares of Home Depot from $360.00 to $390.00 and gave the stock a "neutral" rating in a research note on Thursday, February 26th. Oppenheimer reduced their price target on shares of Home Depot from $405.00 to $310.00 and set a "market perform" rating for the company in a research note on Monday, May 18th. Mizuho reduced their price target on shares of Home Depot from $415.00 to $385.00 and set an "outperform" rating for the company in a research note on Wednesday, May 20th. Finally, Wolfe Research reiterated an "outperform" rating and issued a $365.00 price target on shares of Home Depot in a research note on Tuesday, May 19th. Nineteen research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $371.36.

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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