North Star Asset Management Inc. Acquires Shares of 6,646 The Home Depot, Inc. $HD

Key Points

• North Star Asset Management initiated a Home Depot position by purchasing 6,646 shares valued at approximately $2.34 million. Institutional investors collectively own 70.86% of the company’s stock.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating and an average price target of $375.54. Home Depot also exceeded quarterly earnings and revenue estimates, reporting $4.92 in EPS and $47.86 billion in revenue.
• Company insiders sold 9,154 shares worth about $3.13 million during the latest quarter, while Home Depot declared a quarterly dividend of $2.33 per share, representing a 2.9% annualized yield.

North Star Asset Management Inc. purchased a new position in shares of The Home Depot, Inc. (NYSE:HD - Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund purchased 6,646 shares of the home improvement retailer's stock, valued at approximately $2,344,000.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Bank of Nova Scotia bought a new position in Home Depot in the second quarter worth approximately $118,723,000. Gator Capital Management LLC bought a new position in shares of Home Depot in the 4th quarter worth $3,693,000. AFT Forsyth & Company Inc. bought a new position in shares of Home Depot in the 2nd quarter worth $1,896,000. King Luther Capital Management Corp lifted its stake in shares of Home Depot by 0.6% during the 4th quarter. King Luther Capital Management Corp now owns 1,240,478 shares of the home improvement retailer's stock worth $426,848,000 after purchasing an additional 7,180 shares during the last quarter. Finally, E Fund Management Co. Ltd. bought a new stake in Home Depot during the second quarter valued at about $3,915,000. 70.86% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on the stock. Jefferies Financial Group reiterated a "buy" rating and issued a $398.00 target price on shares of Home Depot in a report on Tuesday, August 18th. DA Davidson reaffirmed a "buy" rating and set a $377.00 price target on shares of Home Depot in a research report on Wednesday, August 19th. Wolfe Research lowered Home Depot from an "outperform" rating to a "peer perform" rating in a report on Tuesday, June 23rd. Stifel Nicolaus upped their target price on Home Depot from $320.00 to $340.00 and gave the company a "hold" rating in a research report on Monday, August 17th. Finally, Guggenheim reiterated a "buy" rating and issued a $425.00 price target on shares of Home Depot in a research note on Wednesday, August 19th. Eighteen research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Home Depot has a consensus rating of "Moderate Buy" and a consensus target price of $375.54.

Insider Buying and Selling at Home Depot

In other news, 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. This represents a 11.07% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Michael F. Rowe sold 710 shares of the firm's 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 directly owned 6,838 shares in the company, valued at approximately $2,302,764.88. This trade represents a 9.41% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 9,154 shares of company stock worth $3,132,798. Insiders own 0.08% of the company's stock.

Key Headlines Impacting Home Depot

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

• Positive Sentiment: Home Depot’s AI-powered Magic Apron tools are now available across U.S. stores, providing localized product search and project assistance. The technology could improve customer engagement and support the company’s professional-customer growth strategy. Home Depot Could Be 15% Undervalued On Its Pro Growth Narrative
• Positive Sentiment: Zacks Research modestly raised its fiscal 2027 EPS forecast for HD to $15.03 from $14.95, while analysts continue to project earnings growth through fiscal 2029. The company also recently exceeded quarterly EPS and revenue expectations, offering some fundamental support. Home Depot Faces Weak DIY Demand
• Positive Sentiment: A regional competitor, Earl May, reportedly plans to close roughly one-quarter of its stores. While the impact is likely limited, store closures could reduce competition in some local markets. Earl May Closing Stores

Home Depot Price Performance

NYSE HD opened at $318.63 on Thursday. The stock's fifty day moving average price is $340.43 and its 200 day moving average price is $337.03. The Home Depot, Inc. has a 1 year low of $289.10 and a 1 year high of $426.75. 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 company has a market cap of $317.89 billion, a price-to-earnings ratio of 22.30, a PEG ratio of 3.52 and a beta of 0.95.

Home Depot (NYSE:HD - Get Free Report) last announced its quarterly earnings data on Tuesday, August 18th. The home improvement retailer reported $4.92 earnings per share 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 business had revenue of $47.86 billion for the quarter, compared to analyst estimates of $47.24 billion. During the same period in the prior year, the company earned $4.68 earnings per share. The company'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. As a group, equities research analysts forecast that The Home Depot, Inc. will post 15 earnings per share for the current year.

Home Depot Announces Dividend

The business 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. 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 currently 65.22%.

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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