Pincus Capital Management LP Invests $1.88 Million in The Home Depot, Inc. $HD

Key Points

• Pincus Capital Management LP initiated a new position in Home Depot in the fourth quarter, buying 5,473 shares valued at about $1.88 million. The stake represents roughly 1.3% of its portfolio.
• Home Depot reported better-than-expected quarterly results, with EPS of $3.43 versus estimates of $3.41 and revenue of $41.77 billion, up 4.8% year over year. The company also reaffirmed guidance for FY 2026 EPS of 14.690 to 15.278.
• The company declared a quarterly dividend of $2.33 per share, payable June 18, for an annualized yield of about 3.0%. Meanwhile, analysts remain broadly positive, with a consensus rating of Moderate Buy and an average price target of $371.39.

Pincus Capital Management LP bought a new position in shares of The Home Depot, Inc. (NYSE:HD - Free Report) in the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor bought 5,473 shares of the home improvement retailer's stock, valued at approximately $1,883,000. Home Depot accounts for about 1.3% of Pincus Capital Management LP's holdings, making the stock its 18th largest holding.

Other hedge funds have also made changes to their positions in the company. 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 worth $26,000 after buying an additional 33 shares during the period. Financially Speaking Inc acquired a new stake in shares of Home Depot during the third quarter worth about $31,000. Key Capital Management INC acquired a new stake in shares of Home Depot during the fourth quarter worth about $28,000. Imprint Wealth LLC acquired a new stake in shares of Home Depot during the third quarter worth about $34,000. Finally, Navalign LLC acquired a new stake in shares of Home Depot during the fourth quarter worth about $31,000. Institutional investors and hedge funds own 70.86% of the company's stock.

Insider Activity

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

Home Depot Price Performance

HD stock opened at $310.58 on Tuesday. The firm has a 50 day moving average of $324.35 and a 200-day moving average of $349.17. The Home Depot, Inc. has a 12-month low of $289.10 and a 12-month high of $426.75. The company has a current ratio of 1.04, a quick ratio of 0.28 and a debt-to-equity ratio of 3.23. The company has a market cap of $309.68 billion, a price-to-earnings ratio of 22.06, a PEG ratio of 3.66 and a beta of 1.00.

Home Depot (NYSE:HD - Get Free Report) last posted its quarterly earnings results on Tuesday, May 19th. The home improvement retailer reported $3.43 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.41 by $0.02. Home Depot had a net margin of 8.41% and a return on equity of 117.24%. The company had revenue of $41.77 billion during the quarter, compared to the consensus estimate of $41.59 billion. During the same period last year, the firm earned $3.56 EPS. The company's revenue for the quarter was up 4.8% 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 expect that The Home Depot, Inc. will post 15.02 EPS for the current fiscal year.

Home Depot Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, June 18th. Stockholders of record on Thursday, June 4th will be given a dividend of $2.33 per share. This represents a $9.32 dividend on an annualized basis and a dividend yield of 3.0%. The ex-dividend date is Thursday, June 4th. Home Depot's dividend payout ratio (DPR) is presently 66.19%.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on HD. Piper Sandler decreased their target price on shares of Home Depot from $422.00 to $421.00 and set an "overweight" rating for the company in a research note on Wednesday, May 20th. Telsey Advisory Group decreased their target price on shares of Home Depot from $435.00 to $410.00 and set an "outperform" rating for the company in a research note on Wednesday, May 20th. Argus decreased their target price on shares of Home Depot from $425.00 to $400.00 and set a "buy" rating for the company in a research note on Thursday, May 21st. Guggenheim restated a "buy" rating and issued a $425.00 price objective on shares of Home Depot in a research report on Wednesday, May 20th. Finally, Sanford C. Bernstein restated a "market perform" rating and issued a $346.00 price objective on shares of Home Depot in a research report on Wednesday, May 20th. Nineteen research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Home Depot currently has an average rating of "Moderate Buy" and a consensus price target of $371.39.

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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