Merit Financial Group LLC Increases Stake in The Home Depot, Inc. $HD

Key Points

• Merit Financial Group increased its Home Depot stake by 24.1% in the second quarter, bringing its holdings to 100,902 shares valued at approximately $35.6 million. Institutional investors collectively own 70.86% of HD.
• Home Depot’s latest quarterly results modestly beat expectations, with earnings of $3.43 per share and revenue of $41.77 billion, up 4.8% year over year. The company declared a quarterly dividend of $2.33 per share, representing a 2.7% yield.
• Analysts maintain a generally positive outlook, with an overall “Moderate Buy” rating and a consensus price target of $373.18 versus the stock’s reported $341.39 price. However, leadership uncertainty, weak housing activity and cautious consumer renovation spending remain risks.

Merit Financial Group LLC lifted its position in The Home Depot, Inc. (NYSE:HD - Free Report) by 24.1% in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 100,902 shares of the home improvement retailer's stock after acquiring an additional 19,584 shares during the quarter. Merit Financial Group LLC's holdings in Home Depot were worth $35,586,000 at the end of the most recent reporting period.

A number of other large investors have also recently made changes to their positions in HD. Curio Wealth LLC raised its position in Home Depot by 13.5% in the 4th quarter. Curio Wealth LLC now owns 218 shares of the home improvement retailer's stock worth $76,000 after purchasing an additional 26 shares during the period. Alesco Advisors LLC boosted its position in shares of Home Depot by 3.2% during the fourth quarter. Alesco Advisors LLC now owns 866 shares of the home improvement retailer's stock valued at $298,000 after buying an additional 27 shares during the period. Canandaigua National Trust Co of Florida boosted its position in shares of Home Depot by 1.3% during the fourth quarter. Canandaigua National Trust Co of Florida now owns 2,178 shares of the home improvement retailer's stock valued at $749,000 after buying an additional 27 shares during the period. Moneco Advisors LLC grew its stake in shares of Home Depot by 0.3% during the fourth quarter. Moneco Advisors LLC now owns 8,743 shares of the home improvement retailer's stock valued at $3,008,000 after buying an additional 27 shares during the last quarter. Finally, Noesis Capital Mangement Corp grew its stake in shares of Home Depot by 1.5% during the fourth quarter. Noesis Capital Mangement Corp now owns 1,770 shares of the home improvement retailer's stock valued at $609,000 after buying an additional 27 shares during the last quarter. 70.86% of the stock is owned by hedge funds and other institutional investors.

Home Depot Trading Down 0.6%

HD opened at $341.39 on Friday. 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 stock's fifty day moving average is $338.62 and its two-hundred day moving average is $341.87. The company has a market capitalization of $340.41 billion, a P/E ratio of 24.25, a PEG ratio of 4.13 and a beta of 0.95. 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 issued its earnings results on Tuesday, May 19th. The home improvement retailer reported $3.43 earnings per share for the quarter, topping the consensus estimate of $3.41 by $0.02. Home Depot had a return on equity of 117.24% and a net margin of 8.41%.The business had revenue of $41.77 billion during the quarter, compared to analysts' expectations of $41.59 billion. During the same period in the prior year, the business earned $3.56 EPS. The business's revenue for the quarter was up 4.8% compared to the same quarter last year. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. Analysts forecast that The Home Depot, Inc. will post 15.01 earnings per share for the current year.

Home Depot Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, June 18th. Shareholders of record on Thursday, June 4th were issued a dividend of $2.33 per share. This represents a $9.32 annualized dividend and a yield of 2.7%. The ex-dividend date was Thursday, June 4th. Home Depot's dividend payout ratio is presently 66.19%.

Analyst Ratings Changes

HD has been the subject of a number of research analyst reports. Wells Fargo & Company raised their price target on Home Depot from $360.00 to $400.00 and gave the stock an "overweight" rating in a research note on Tuesday. Argus cut their price objective on Home Depot from $425.00 to $400.00 and set a "buy" rating on the stock in a research report on Thursday, May 21st. Morgan Stanley reduced their target price on Home Depot from $420.00 to $400.00 and set an "overweight" rating on the stock in a research note on Wednesday, May 20th. Wall Street Zen upgraded Home Depot from a "sell" rating to a "hold" rating in a research report on Tuesday, June 2nd. Finally, UBS Group lowered their target price 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. Eighteen 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, Home Depot currently has an average rating of "Moderate Buy" and a consensus price target of $373.18.

Key Headlines Impacting Home Depot

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

• Positive Sentiment: Wells Fargo raised its price target for Home Depot (HD) to $400, indicating potential upside from current levels. Wells Fargo Raises Home Depot Price Target
• Positive Sentiment: Analysts at Zacks see a possibility that Home Depot will again exceed earnings expectations, citing its history of positive surprises and favorable earnings indicators. Estimates for the upcoming quarter call for approximately $4.73 in earnings per share and $47.24 billion in revenue. Home Depot Earnings Surprise Outlook
• Positive Sentiment: The bankruptcy filing of a smaller hardware rival could modestly benefit Home Depot by reducing competition, although the broader home-improvement market remains pressured by weak housing activity and cautious renovation spending. Hardware Rival Files for Bankruptcy
• Neutral Sentiment: Wall Street is focused on Home Depot’s second-quarter operating metrics beyond revenue and earnings, including customer traffic, comparable-store sales, margins and guidance for the remainder of fiscal 2026. Home Depot Q2 Key Metrics Preview
• Negative Sentiment: CEO, Chair and President Ted Decker is taking a temporary medical leave expected to last several months. CFO Richard McPhail and Executive Vice President Ann-Marie Campbell will oversee the company, but the timing—just days before earnings—adds leadership uncertainty and could amplify the market’s reaction to guidance. Home Depot CEO Medical Leave
• Negative Sentiment: Rising fuel costs may pressure consumers and increase transportation and operating expenses across retail, while the sluggish housing market continues to delay larger do-it-yourself and professional renovation projects. Rising Fuel Costs and Home Depot
• Negative Sentiment: Bernstein maintained a Hold rating, and some analysts argue the stock is already priced for a housing and consumer-spending recovery ahead of confirmation in the upcoming report. Bernstein Maintains Hold Rating

Home Depot 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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