Saratoga Research & Investment Management Has $31.45 Million Stock Position in The Home Depot, Inc. $HD

Key Points

• Saratoga Research & Investment Management trimmed its Home Depot stake by 4.5% in the fourth quarter, but still held 91,391 shares worth about $31.45 million.
• Wall Street sentiment remains mixed: several firms cut price targets, but the consensus rating is still Moderate Buy with an average target price of $405.66.
• Home Depot recently reported earnings and raised its dividend: it beat EPS estimates, posted quarterly revenue of $38.2 billion, and increased its quarterly payout to $2.33 per share, implying a 3.1% yield.

Saratoga Research & Investment Management trimmed its position in The Home Depot, Inc. (NYSE:HD - Free Report) by 4.5% in the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 91,391 shares of the home improvement retailer's stock after selling 4,283 shares during the quarter. Home Depot comprises approximately 1.6% of Saratoga Research & Investment Management's holdings, making the stock its 19th largest position. Saratoga Research & Investment Management's holdings in Home Depot were worth $31,448,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also modified their holdings of the company. Parvin Asset Management LLC lifted its stake in shares of Home Depot by 110.0% in 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 last quarter. Key Capital Management INC acquired a new stake in shares of Home Depot in the fourth quarter worth $28,000. Financially Speaking Inc acquired a new stake in shares of Home Depot in the third quarter worth $31,000. Navalign LLC acquired a new stake in shares of Home Depot in the fourth quarter worth $31,000. Finally, Disciplined Equity Management Inc. acquired a new position in Home Depot during the 4th quarter valued at $34,000. 70.86% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several research firms recently commented on HD. Piper Sandler cut 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 Friday. Weiss Ratings reiterated a "hold (c+)" rating on shares of Home Depot in a research note on Friday, March 27th. BNP Paribas Exane cut their target price on shares of Home Depot from $391.00 to $348.00 and set a "neutral" rating for the company in a research note on Tuesday, March 24th. Wells Fargo & Company cut their target price on shares of Home Depot from $420.00 to $375.00 and set an "overweight" rating for the company in a research note on Thursday. Finally, Wall Street Zen upgraded shares of Home Depot from a "sell" rating to a "hold" rating in a research note on Sunday. Twenty equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Home Depot presently has a consensus rating of "Moderate Buy" and an average target price of $405.66.

Home Depot Trading Down 2.3%

Shares of Home Depot stock opened at $297.34 on Friday. The firm has a market capitalization of $296.16 billion, a PE ratio of 20.90, a price-to-earnings-growth ratio of 3.43 and a beta of 1.00. The company has a debt-to-equity ratio of 3.62, a current ratio of 1.06 and a quick ratio of 0.26. The company's fifty day moving average price is $331.77 and its two-hundred day moving average price is $354.39. The Home Depot, Inc. has a 52-week low of $296.88 and a 52-week high of $426.75.

Home Depot (NYSE:HD - Get Free Report) last announced its quarterly earnings results on Tuesday, February 24th. The home improvement retailer reported $2.72 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.52 by $0.20. The firm had revenue of $38.20 billion for the quarter, compared to analyst estimates of $38.01 billion. Home Depot had a net margin of 8.60% and a return on equity of 134.32%. The business's revenue for the quarter was down 3.8% on a year-over-year basis. During the same quarter in the previous year, the firm posted $3.13 EPS. Home Depot has set its FY 2026 guidance at 14.230-14.799 EPS. On average, analysts expect that The Home Depot, Inc. will post 15.03 EPS for the current year.

Home Depot Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, March 26th. Shareholders of record on Thursday, March 12th were issued a $2.33 dividend. This is a boost from Home Depot's previous quarterly dividend of $2.30. The ex-dividend date of this dividend was Thursday, March 12th. This represents a $9.32 annualized dividend and a yield of 3.1%. Home Depot's payout ratio is presently 65.50%.

More Home Depot News

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

• Positive Sentiment: Telsey Advisory reiterated a Buy rating on Home Depot, suggesting at least one Wall Street firm still sees value in the shares despite recent volatility.
• Positive Sentiment: Some commentary has highlighted Home Depot as a potential beneficiary if housing turnover and mortgage-rate conditions improve, which could support future sales and earnings.
• Neutral Sentiment: Investors are watching Home Depot closely ahead of earnings on May 19, with articles focusing on whether pro demand, digital tools, and repair projects can offset a weaker housing backdrop.
• Neutral Sentiment: Jim Cramer said Home Depot can perform well in a lower-rate environment, but also noted the stock needs stronger housing turnover to really accelerate.
• Negative Sentiment: Sanford C. Bernstein cut its price target on Home Depot to $365 from $390 and kept a Market Perform rating, reflecting a more cautious view on near-term upside.
• Negative Sentiment: A new class-action lawsuit reportedly pressured the stock, adding legal uncertainty at an already sensitive time for investors.
• Negative Sentiment: Recent pre-earnings pullback and broader worries about housing turnover have also weighed on sentiment, helping explain why Home Depot stock has been moving lower.

Insider Transactions at Home Depot

In other Home Depot news, CFO Richard V. Mcphail sold 2,550 shares of the business's stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $368.89, for a total value of $940,669.50. Following the sale, the chief financial officer owned 44,566 shares of the company's stock, valued at $16,439,951.74. The trade was a 5.41% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. 0.08% of the stock is owned by company insiders.

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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