Plato Investment Management Ltd Invests $7.80 Million in The Home Depot, Inc. $HD

Key Points

• Plato Investment Management acquired 22,240 Home Depot shares worth approximately $7.8 million during the second quarter. Institutional investors collectively own 70.86% of the company.
• Home Depot exceeded quarterly expectations, reporting $4.92 in EPS and $47.86 billion in revenue, with sales up 5.7% year over year. The company also declared a $2.33-per-share quarterly dividend, representing an annualized yield of about 2.8%.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $375.54, although several brokerages recently lowered targets amid margin pressure and weaker demand for large renovation projects. CFO Richard McPhail also sold roughly $2.1 million in shares.

Plato Investment Management Ltd acquired a new stake in The Home Depot, Inc. (NYSE:HD - Free Report) during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor acquired 22,240 shares of the home improvement retailer's stock, valued at approximately $7,798,000.

Several other hedge funds and other institutional investors have also made changes to their positions in the business. Gator Capital Management LLC purchased a new position in shares of Home Depot in the 4th quarter valued at $3,693,000. King Luther Capital Management Corp raised its stake in 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 acquiring an additional 7,180 shares in the last quarter. Thompson Siegel & Walmsley LLC lifted its position in Home Depot by 320.4% in the fourth quarter. Thompson Siegel & Walmsley LLC now owns 11,292 shares of the home improvement retailer's stock valued at $3,886,000 after acquiring an additional 8,606 shares during the last quarter. Sarasin & Partners LLP lifted its position in Home Depot by 4.0% in the second quarter. Sarasin & Partners LLP now owns 687,219 shares of the home improvement retailer's stock valued at $242,368,000 after acquiring an additional 26,357 shares during the last quarter. Finally, Capital International Inc. CA boosted its stake in Home Depot by 4.3% in the fourth quarter. Capital International Inc. CA now owns 150,368 shares of the home improvement retailer's stock valued at $51,742,000 after acquiring an additional 6,187 shares in the last quarter. Institutional investors and hedge funds own 70.86% of the company's stock.

Insider Buying and Selling

In other Home Depot news, CFO Richard V. Mcphail sold 5,989 shares of the stock in a transaction that occurred on Wednesday, August 19th. The stock was 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 directly owned 48,104 shares of the company's stock, valued at approximately $16,759,433.60. This trade represents a 11.07% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.08% of the stock is currently owned by corporate insiders.

Home Depot Trading Up 0.1%

Shares of Home Depot stock opened at $336.04 on Monday. The company has a debt-to-equity ratio of 2.64, a quick ratio of 0.31 and a current ratio of 1.08. The company has a market capitalization of $335.07 billion, a P/E ratio of 23.52, a PEG ratio of 3.70 and a beta of 0.95. The Home Depot, Inc. has a 1 year low of $289.10 and a 1 year high of $426.75. The company's fifty day moving average is $340.86 and its two-hundred day moving average is $340.20.

Home Depot (NYSE:HD - Get Free Report) last announced its earnings results on Tuesday, August 18th. The home improvement retailer reported $4.92 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 business had revenue of $47.86 billion during the quarter, compared to analysts' expectations of $47.24 billion. During the same period in the prior year, the company earned $4.68 earnings per share. The business's revenue was up 5.7% compared to the same quarter last year. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. 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 of this dividend is Thursday, September 3rd. This represents a $9.32 annualized dividend and a yield of 2.8%. Home Depot's dividend payout ratio is currently 65.22%.

Home Depot News Roundup

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

Analysts Set New Price Targets

Several brokerages have issued reports on HD. Morgan Stanley dropped their price objective on Home Depot from $420.00 to $400.00 and set an "overweight" rating on the stock in a report on Wednesday, May 20th. Stifel Nicolaus boosted their target price on Home Depot from $320.00 to $340.00 and gave the company a "hold" rating in a report on Monday, August 17th. Citigroup decreased their target price on Home Depot from $450.00 to $400.00 and set a "buy" rating for the company in a research report on Tuesday, May 12th. Telsey Advisory Group dropped their price target on Home Depot from $435.00 to $410.00 and set an "outperform" rating on the stock in a research note on Wednesday, May 20th. Finally, Oppenheimer cut their price target on Home Depot from $405.00 to $310.00 and set a "market perform" rating on the stock in a research report on Monday, May 18th. Eighteen research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $375.54.

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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