Pallas Capital Advisors LLC Takes Position in The Home Depot, Inc. $HD

Key Points

• Pallas Capital Advisors initiated a Home Depot position by purchasing 7,737 shares valued at approximately $2.73 million. Institutional investors own about 70.9% of the company.
• Home Depot exceeded quarterly expectations, reporting $4.92 EPS and $47.86 billion in revenue, with revenue up 5.7% year over year. Analysts maintain a “Moderate Buy” consensus and an average price target of $375.54.
• The company declared a quarterly dividend of $2.33 per share, representing a 2.8% annualized yield, while CFO Richard McPhail sold approximately $2.1 million in stock and analysts noted ongoing margin and renovation-spending pressures.

Pallas Capital Advisors LLC purchased a new position in The Home Depot, Inc. (NYSE:HD - Free Report) during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund purchased 7,737 shares of the home improvement retailer's stock, valued at approximately $2,729,000.

Several other large investors have also recently made changes to their positions in the company. Advocate Investing Services LLC purchased a new position in Home Depot in the 4th quarter valued at $25,000. Zeit Capital LLC purchased a new stake in shares of Home Depot during the second quarter worth $26,000. Parvin Asset Management LLC grew its holdings 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 worth $26,000 after buying an additional 33 shares in the last quarter. Cache Advisors LLC acquired a new stake in shares of Home Depot in the first quarter valued at about $27,000. Finally, Merkkuri Wealth Advisors LLC purchased a new position in shares of Home Depot in the first quarter worth about $28,000. 70.86% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling at Home Depot

In other news, CFO Richard V. Mcphail sold 5,989 shares of the firm's stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $348.40, for a total transaction of $2,086,567.60. Following the completion of the sale, the chief financial officer owned 48,104 shares in the company, valued at $16,759,433.60. This trade represents a 11.07% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.08% of the stock is currently owned by company insiders.

Home Depot Trading Up 0.1%

Shares of HD stock opened at $336.04 on Monday. The company's 50-day moving average price is $340.86 and its 200-day moving average price is $340.20. The company has a current ratio of 1.08, a quick ratio of 0.31 and a debt-to-equity ratio of 2.64. The stock has a market cap of $335.07 billion, a price-to-earnings ratio of 23.52, a PEG ratio of 3.70 and a beta of 0.95. The Home Depot, Inc. has a twelve month low of $289.10 and a twelve month high of $426.75.

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 (EPS) for the quarter, beating analysts' consensus estimates of $4.73 by $0.19. Home Depot had a net margin of 8.41% and a return on equity of 106.42%. The firm had revenue of $47.86 billion during the quarter, compared to analyst estimates of $47.24 billion. During the same quarter in the prior year, the firm posted $4.68 earnings per share. 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 analysts predict that The Home Depot, Inc. will post 14.99 earnings per share for the current year.

Home Depot Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 17th. Stockholders of record on Thursday, September 3rd will be paid a $2.33 dividend. The ex-dividend date of this dividend is Thursday, September 3rd. This represents a $9.32 annualized dividend and a dividend yield of 2.8%. Home Depot's dividend payout ratio is 65.22%.

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on the stock. Piper Sandler lowered their price target on shares of Home Depot from $422.00 to $421.00 and set an "overweight" rating on the stock in a research report on Wednesday, May 20th. Mizuho increased their price objective on shares of Home Depot from $385.00 to $390.00 and gave the company an "outperform" rating in a report on Wednesday. Gordon Haskett raised their target price on shares of Home Depot from $320.00 to $330.00 in a research note on Friday, June 12th. UBS Group lowered their target price on Home Depot from $430.00 to $420.00 and set a "buy" rating on the stock in a report on Wednesday. Finally, Telsey Advisory Group dropped their price target on Home Depot from $435.00 to $410.00 and set an "outperform" rating for the company in a research report on Wednesday, May 20th. Eighteen analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $375.54.

Key Home Depot News

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

• Positive Sentiment: Home Depot’s latest quarter showed solid execution: earnings and revenue exceeded consensus estimates, while sales increased year over year. Bank of America characterized the results as resilient despite a difficult housing backdrop. Home Depot Q2 results analysis
• Positive Sentiment: The board declared a quarterly dividend of $2.33 per share, payable September 17 to shareholders of record September 3. The annualized payout implies a yield of approximately 2.8%, supporting the stock’s income appeal. Home Depot declares quarterly dividend
• Positive Sentiment: DA Davidson, Argus and Guggenheim reiterated or assigned “Buy” ratings, indicating continued confidence in Home Depot’s long-term positioning. The company is also expanding nationwide express delivery to make smaller projects more convenient for cautious consumers. DA Davidson buy rating Home Depot expands express delivery
• Neutral Sentiment: Royal Bank of Canada lowered its price target to $342, while KeyCorp maintained a Sector Weight rating. The mixed recommendations suggest limited near-term upside despite the earnings beat. RBC lowers Home Depot price target
• Neutral Sentiment: Home Depot expanded executive responsibilities and awarded restricted stock, changes intended to support leadership continuity but with no immediate earnings impact. Home Depot executive changes
• Negative Sentiment: Reports highlight margin pressure and an uphill sales environment as customers delay or reduce spending on major renovations. This could constrain comparable sales and profitability even after the recent quarterly beat. Home Depot margin pressure Home Depot customer spending concerns
• Negative Sentiment: CFO Richard McPhail sold 5,989 shares worth approximately $2.1 million, reducing his position by 11.1%. While insider sales do not necessarily signal deteriorating fundamentals, the transaction may weigh modestly on sentiment. Home Depot CFO stock sale

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.

Want to see what other hedge funds are holding HD? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for The Home Depot, Inc. (NYSE:HD - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source