Northwestern Mutual Wealth Management Co. Boosts Stake in The Home Depot, Inc. $HD

Key Points

• Northwestern Mutual Wealth Management sharply increased its Home Depot stake by 215.4% in Q4, ending with 1.25 million shares valued at about $429.6 million.
• Wall Street sentiment remains mixed but generally positive: Home Depot has a Moderate Buy consensus, with an average price target of $405.66 even as some firms cut targets and others raised them.
• The company’s latest quarter beat expectations on both earnings and revenue, and Home Depot also raised its quarterly dividend to $2.33 per share, equal to an annualized yield of about 3.1%.

Northwestern Mutual Wealth Management Co. lifted its position in shares of The Home Depot, Inc. (NYSE:HD - Free Report) by 215.4% during the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 1,248,615 shares of the home improvement retailer's stock after buying an additional 852,719 shares during the period. Northwestern Mutual Wealth Management Co. owned about 0.13% of Home Depot worth $429,648,000 as of its most recent SEC filing.

A number of other large investors also recently added to or reduced their stakes in the business. Silphium Asset Management Ltd increased its position in Home Depot by 77.2% during the 3rd quarter. Silphium Asset Management Ltd now owns 13,544 shares of the home improvement retailer's stock valued at $5,488,000 after buying an additional 5,900 shares in the last quarter. Truist Financial Corp increased its position in Home Depot by 0.3% during the 3rd quarter. Truist Financial Corp now owns 1,095,113 shares of the home improvement retailer's stock valued at $443,729,000 after buying an additional 3,608 shares in the last quarter. Atlantic Union Bankshares Corp increased its position in Home Depot by 59.9% during the 3rd quarter. Atlantic Union Bankshares Corp now owns 107,438 shares of the home improvement retailer's stock valued at $43,533,000 after buying an additional 40,232 shares in the last quarter. Carnegie Investment Counsel increased its position in Home Depot by 24.8% during the 4th quarter. Carnegie Investment Counsel now owns 108,306 shares of the home improvement retailer's stock valued at $37,268,000 after buying an additional 21,545 shares in the last quarter. Finally, Savvy Advisors Inc. increased its position in Home Depot by 36.0% during the 4th quarter. Savvy Advisors Inc. now owns 19,478 shares of the home improvement retailer's stock valued at $6,703,000 after buying an additional 5,152 shares in the last quarter. Hedge funds and other institutional investors own 70.86% of the company's stock.

Wall Street Analyst Weigh In

Several analysts have commented on the company. Royal Bank Of Canada increased their target price on Home Depot from $363.00 to $377.00 and gave the company a "sector perform" rating in a research note on Wednesday, February 25th. Gordon Haskett cut their target price on Home Depot from $395.00 to $330.00 in a research note on Friday, May 8th. Jefferies Financial Group increased their target price on Home Depot from $424.00 to $454.00 and gave the company a "buy" rating in a research note on Tuesday, February 24th. Robert W. Baird increased their target price on Home Depot from $400.00 to $430.00 and gave the company an "outperform" rating in a research note on Tuesday, February 17th. Finally, Truist Financial dropped their price target on Home Depot from $424.00 to $394.00 and set a "buy" rating on the stock in a research note on Wednesday. Twenty research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Home Depot has a consensus rating of "Moderate Buy" and an average price target of $405.66.

Home Depot Stock Performance

HD stock opened at $297.34 on Friday. The company has a market cap of $296.16 billion, a P/E ratio of 20.90, a price-to-earnings-growth ratio of 3.51 and a beta of 1.00. The company has a debt-to-equity ratio of 3.62, a current ratio of 1.06 and a quick ratio of 0.26. The stock's fifty day moving average price is $331.77 and its 200-day moving average price is $354.39. The Home Depot, Inc. has a 1 year low of $296.88 and a 1 year high of $426.75.

Home Depot (NYSE:HD - Get Free Report) last released its earnings results on Tuesday, February 24th. The home improvement retailer reported $2.72 earnings per share for the quarter, beating the consensus estimate of $2.52 by $0.20. The company had revenue of $38.20 billion for the quarter, compared to the consensus estimate of $38.01 billion. Home Depot had a return on equity of 134.32% and a net margin of 8.60%.Home Depot's quarterly revenue was down 3.8% compared to the same quarter last year. During the same period in the previous year, the business earned $3.13 earnings per share. Home Depot has set its FY 2026 guidance at 14.230-14.799 EPS. On average, equities analysts forecast that The Home Depot, Inc. will post 15.03 earnings per share for the current year.

Home Depot Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, March 26th. Investors of record on Thursday, March 12th were given a dividend of $2.33 per share. This represents a $9.32 annualized dividend and a yield of 3.1%. This is a boost from Home Depot's previous quarterly dividend of $2.30. The ex-dividend date was Thursday, March 12th. Home Depot's dividend payout ratio (DPR) is presently 65.50%.

Trending Headlines about Home Depot

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

• Positive Sentiment: Telsey Advisory reiterated a Buy rating on Home Depot, suggesting at least one Wall Street firm still sees value in the shares despite recent volatility.
• Positive Sentiment: Some commentary has highlighted Home Depot as a potential beneficiary if housing turnover and mortgage-rate conditions improve, which could support future sales and earnings.
• Neutral Sentiment: Investors are watching Home Depot closely ahead of earnings on May 19, with articles focusing on whether pro demand, digital tools, and repair projects can offset a weaker housing backdrop.
• Neutral Sentiment: Jim Cramer said Home Depot can perform well in a lower-rate environment, but also noted the stock needs stronger housing turnover to really accelerate.
• Negative Sentiment: Sanford C. Bernstein cut its price target on Home Depot to $365 from $390 and kept a Market Perform rating, reflecting a more cautious view on near-term upside.
• Negative Sentiment: A new class-action lawsuit reportedly pressured the stock, adding legal uncertainty at an already sensitive time for investors.
• Negative Sentiment: Recent pre-earnings pullback and broader worries about housing turnover have also weighed on sentiment, helping explain why Home Depot stock has been moving lower.

Insiders Place Their Bets

In related news, CFO Richard V. Mcphail sold 2,550 shares of Home Depot stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $368.89, for a total transaction of $940,669.50. Following the transaction, the chief financial officer directly owned 44,566 shares in the company, valued at approximately $16,439,951.74. The trade was a 5.41% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 0.08% of the company's stock.

Home Depot Company 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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