Rakuten Investment Management Inc. Makes New $57.15 Million Investment in The Home Depot, Inc. $HD

Key Points

• Rakuten Investment Management bought 162,910 Home Depot shares worth approximately $57.15 million in the second quarter. Institutional investors collectively own 70.86% of the company.
• Home Depot beat quarterly expectations with $4.92 EPS and $47.86 billion in revenue, while revenue rose 5.7% year over year. The company also declared a $2.33 quarterly dividend, equivalent to a 2.9% annual yield.
• Analysts maintain a “Moderate Buy” consensus rating with an average price target of $375.54, although two executive vice presidents recently sold shares and the stock opened at $318.63, below its moving averages.

Rakuten Investment Management Inc. bought a new stake in The Home Depot, Inc. (NYSE:HD - Free Report) in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm bought 162,910 shares of the home improvement retailer's stock, valued at approximately $57,150,000.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Advocate Investing Services LLC purchased a new position in Home Depot during the 4th quarter valued at about $25,000. Zeit Capital LLC purchased a new stake in Home Depot during the second quarter worth about $26,000. Parvin Asset Management LLC lifted its position 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 purchasing an additional 33 shares in the last quarter. Cache Advisors LLC acquired a new stake in shares of Home Depot during the first quarter worth about $27,000. Finally, Merkkuri Wealth Advisors LLC purchased a new position in shares of Home Depot in the first quarter valued at approximately $28,000. Hedge funds and other institutional investors own 70.86% of the company's stock.

Home Depot Price Performance

Shares of NYSE HD opened at $318.63 on Thursday. The stock's 50-day simple moving average is $340.43 and its 200-day simple moving average is $337.03. The firm has a market capitalization of $317.89 billion, a PE ratio of 22.30, a price-to-earnings-growth ratio of 3.52 and a beta of 0.95. The Home Depot, Inc. has a fifty-two week low of $289.10 and a fifty-two 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.

Home Depot (NYSE:HD - Get Free Report) last announced its quarterly earnings results 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. The firm had revenue of $47.86 billion during the quarter, compared to the consensus estimate of $47.24 billion. Home Depot had a return on equity of 106.42% and a net margin of 8.41%.The firm's quarterly revenue was up 5.7% compared to the same quarter last year. During the same period in the prior year, the company posted $4.68 earnings per share. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. As a group, equities research analysts forecast that The Home Depot, Inc. will post 15 EPS for the current fiscal year.

Home Depot Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 17th. Stockholders of record on Thursday, September 3rd will be issued a $2.33 dividend. The ex-dividend date is Thursday, September 3rd. This represents a $9.32 annualized dividend and a dividend yield of 2.9%. Home Depot's dividend payout ratio is presently 65.22%.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on HD shares. Wells Fargo & Company upped their target price on shares of Home Depot from $360.00 to $400.00 and gave the stock an "overweight" rating in a research note on Tuesday, August 11th. KeyCorp reaffirmed a "sector weight" rating on shares of Home Depot in a research report on Wednesday, August 19th. Sanford C. Bernstein reiterated a "market perform" rating and issued a $354.00 price objective on shares of Home Depot in a research note on Wednesday, August 19th. Mizuho boosted their target price on Home Depot from $385.00 to $390.00 and gave the stock an "outperform" rating in a research note on Wednesday, August 19th. Finally, Truist Financial upped their price target on Home Depot from $369.00 to $373.00 and gave the stock a "buy" rating in a report on Wednesday, August 19th. Eighteen equities research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Home Depot presently has a consensus rating of "Moderate Buy" and a consensus target price of $375.54.

Home Depot News Roundup

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

• Positive Sentiment: Home Depot’s AI-powered Magic Apron tools are now available across U.S. stores, providing localized product search and project assistance. The technology could improve customer engagement and support the company’s professional-customer growth strategy. Home Depot Could Be 15% Undervalued On Its Pro Growth Narrative
• Positive Sentiment: Zacks Research modestly raised its fiscal 2027 EPS forecast for HD to $15.03 from $14.95, while analysts continue to project earnings growth through fiscal 2029. The company also recently exceeded quarterly EPS and revenue expectations, offering some fundamental support. Home Depot Faces Weak DIY Demand
• Positive Sentiment: A regional competitor, Earl May, reportedly plans to close roughly one-quarter of its stores. While the impact is likely limited, store closures could reduce competition in some local markets. Earl May Closing Stores

Insider Activity at Home Depot

In related news, EVP Teresa Wynn Roseborough sold 2,455 shares of Home Depot stock in a transaction on Friday, August 28th. The shares were sold at an average price of $328.77, for a total transaction of $807,130.35. Following the sale, the executive vice president directly owned 14,061 shares in the company, valued at $4,622,834.97. This trade represents a 14.86% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Michael F. Rowe sold 710 shares of the business's stock in a transaction on Wednesday, August 26th. The shares were sold at an average price of $336.76, for a total transaction of $239,099.60. Following the completion of the sale, the executive vice president directly owned 6,838 shares of the company's stock, valued at approximately $2,302,764.88. This trade represents a 9.41% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 9,154 shares of company stock valued at $3,132,798 in the last ninety days. 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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