Northstar Group Inc. Acquires New Shares in The Home Depot, Inc. $HD

Key Points

• Northstar Group acquired 6,320 Home Depot shares in the second quarter, valued at approximately $2.23 million. Institutional investors collectively own 70.86% of HD.
• Home Depot exceeded quarterly expectations, reporting $47.86 billion in revenue and adjusted EPS of $4.92, with revenue up 5.7% year over year. Analysts largely remain positive, with a consensus “Moderate Buy” rating and a $375.54 price target.
• The company declared a quarterly dividend of $2.33 per share, equivalent to $9.32 annually and a 2.8% yield. However, elevated mortgage rates and higher operating costs continue to weigh on major renovation demand and investor sentiment.

Northstar Group Inc. acquired a new position in The Home Depot, Inc. (NYSE:HD - Free Report) in the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor acquired 6,320 shares of the home improvement retailer's stock, valued at approximately $2,229,000.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in HD. Advocate Investing Services LLC bought a new stake in shares of Home Depot in the 4th quarter valued at about $25,000. Parvin Asset Management LLC boosted its stake in shares of Home Depot by 110.0% during the third quarter. Parvin Asset Management LLC now owns 63 shares of the home improvement retailer's stock valued at $26,000 after purchasing an additional 33 shares in the last quarter. Cache Advisors LLC bought a new position in Home Depot in the first quarter worth approximately $27,000. Merkkuri Wealth Advisors LLC purchased a new stake in Home Depot during the first quarter worth $28,000. Finally, Abound Financial LLC purchased a new stake in Home Depot during the fourth quarter worth $29,000. 70.86% of the stock is currently owned by institutional investors.

Home Depot News Summary

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

• Positive Sentiment: Home Depot reported quarterly revenue of $47.86 billion and adjusted earnings of $4.92 per share, exceeding analyst expectations. Revenue increased 5.7% year over year, supported by professional-customer demand, project activity and improved digital fulfillment. Home Depot Q2 Earnings Call Spotlights Pro Momentum and Cost Pressures
• Positive Sentiment: Analysts at BofA, UBS and other firms viewed the results as evidence of stronger execution and potential growth ahead of a broader home-improvement recovery. Several analysts reaffirmed Buy ratings, including DA Davidson, Argus and Guggenheim, with price targets ranging from $377 to $425. Home Depot's Q2 Results Show Solid Execution Amid Tough Housing Backdrop, BofA Says
• Positive Sentiment: The board declared a quarterly dividend of $2.33 per share, payable September 17 to shareholders of record September 3, providing continued income support for investors. The Home Depot Declares Quarterly Dividend of $2.33
• Neutral Sentiment: Home Depot expanded express delivery nationwide from local stores, a move aimed at capturing smaller, convenience-driven projects as customers defer large renovations. Home Depot offers nationwide express delivery from local stores
• Negative Sentiment: Elevated mortgage rates continue to discourage home moves and major remodeling projects, shifting spending toward maintenance rather than higher-ticket purchases. Analysts also warned that a $730 million tariff refund largely offset higher fuel, energy and operating costs, limiting its benefit to earnings. Home Depot’s $730 million tariff refund was largely offset by rising costs
• Negative Sentiment: Investor sentiment remains mixed: RBC lowered its price target to $342 and maintained a Sector Perform rating, while commentary cautioned that the earnings beat does not yet signal a broad housing recovery. Home Depot faces uphill battle amid a growing customer problem

Home Depot Price Performance

NYSE HD opened at $334.28 on Friday. The company has a debt-to-equity ratio of 2.64, a current ratio of 1.08 and a quick ratio of 0.28. The Home Depot, Inc. has a 1 year low of $289.10 and a 1 year high of $426.75. The company has a market cap of $333.32 billion, a price-to-earnings ratio of 23.39, a PEG ratio of 4.49 and a beta of 0.95. The stock's fifty day moving average price is $340.71 and its 200 day moving average price is $340.49.

Home Depot (NYSE:HD - Get Free Report) last issued its quarterly earnings results on Tuesday, August 18th. The home improvement retailer reported $4.92 earnings per share for the quarter, topping the consensus estimate 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 quarter in the prior year, the company earned $4.68 EPS. Home Depot's quarterly 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 14.99 earnings per share for the current year.

Home Depot Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 17th. Shareholders of record on Thursday, September 3rd will be paid a dividend of $2.33 per share. The ex-dividend date is Thursday, September 3rd. This represents a $9.32 dividend on an annualized basis and a dividend yield of 2.8%. Home Depot's dividend payout ratio (DPR) is presently 65.22%.

Analysts Set New Price Targets

A number of research analysts have recently issued reports on HD shares. Mizuho lifted their price target on Home Depot from $385.00 to $390.00 and gave the company an "outperform" rating in a report on Wednesday. BNP Paribas Exane dropped their price objective on Home Depot from $348.00 to $325.00 and set a "neutral" rating on the stock in a research report on Tuesday, May 19th. Wells Fargo & Company boosted their target price on shares of Home Depot from $360.00 to $400.00 and gave the stock an "overweight" rating in a report on Tuesday, August 11th. HSBC decreased their price target on shares of Home Depot from $392.00 to $310.00 and set a "hold" rating for the company in a research report on Wednesday, May 20th. Finally, Citigroup lowered their price target on shares of Home Depot from $450.00 to $400.00 and set a "buy" rating on the stock in a report on Tuesday, May 12th. Eighteen analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Home Depot has a consensus rating of "Moderate Buy" and a consensus price target of $375.54.

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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