Principle Wealth Partners LLC Purchases New Stake in The Home Depot, Inc. $HD

Key Points

• Principle Wealth Partners LLC acquired 41,298 Home Depot shares during the second quarter, valued at approximately $14.6 million. 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 revenue up 5.7% year over year. The company also declared a $2.33 quarterly dividend, representing an annualized yield of about 2.8%.
• Analyst sentiment remains generally positive, with a consensus “Moderate Buy” rating and $375.54 target price, although margin pressure, cautious consumer spending and a $2.1 million CFO stock sale remain potential headwinds.

Principle Wealth Partners LLC purchased a new stake in shares of The Home Depot, Inc. (NYSE:HD - Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the SEC. The firm purchased 41,298 shares of the home improvement retailer's stock, valued at approximately $14,565,000.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in the stock. Advocate Investing Services LLC bought a new position in shares of Home Depot in the fourth quarter valued at about $25,000. Zeit Capital LLC bought a new stake in shares of Home Depot during the 2nd quarter worth about $26,000. Parvin Asset Management LLC boosted its holdings in shares of Home Depot by 110.0% during the 3rd 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. Cache Advisors LLC acquired a new position in Home Depot in the 1st quarter valued at about $27,000. Finally, Merkkuri Wealth Advisors LLC acquired a new position in Home Depot in the 1st quarter valued at about $28,000. 70.86% of the stock is owned by institutional investors.

Key Headlines Impacting Home Depot

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

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on HD shares. Wall Street Zen upgraded shares of Home Depot from a "sell" rating to a "hold" rating in a research report on Tuesday, June 2nd. Robert W. Baird decreased their target price on Home Depot from $430.00 to $380.00 and set an "outperform" rating on the stock in a research report on Wednesday, May 20th. JPMorgan Chase & Co. decreased their target price on Home Depot from $423.00 to $396.00 and set an "overweight" rating on the stock in a research report on Wednesday, May 20th. Argus reiterated a "buy" rating and set a $400.00 target price on shares of Home Depot in a research note on Wednesday, August 19th. Finally, KeyCorp reissued a "sector weight" rating on shares of Home Depot in a report on Wednesday, August 19th. Eighteen research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $375.54.

Home Depot Price Performance

NYSE:HD opened at $336.04 on Monday. The Home Depot, Inc. has a 52 week low of $289.10 and a 52 week high of $426.75. 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 firm's 50-day simple moving average is $340.86 and its 200 day simple moving average is $340.20. The firm has a market cap of $335.07 billion, a price-to-earnings ratio of 23.52, a P/E/G ratio of 3.70 and a beta of 0.95.

Home Depot (NYSE:HD - Get Free Report) last posted 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 the consensus estimate of $47.24 billion. During the same quarter in the previous year, the firm posted $4.68 EPS. The business's revenue for the quarter 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. As a group, sell-side analysts predict that The Home Depot, Inc. will post 14.99 earnings per share for the current year.

Home Depot Announces Dividend

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

Insider Activity

In related 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 sale, the chief financial officer owned 48,104 shares of the company's stock, valued at $16,759,433.60. This represents a 11.07% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Company insiders own 0.08% of the company's stock.

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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