SCS Capital Management LLC Purchases New Position in The Home Depot, Inc. $HD

Key Points

• SCS Capital Management purchased 9,170 Home Depot shares in the second quarter, valued at approximately $3.23 million. Institutional investors and hedge funds collectively own 70.86% of the stock.
• Home Depot exceeded quarterly expectations, reporting $4.92 EPS and $47.86 billion in revenue, up 5.7% year over year. Analysts maintain a “Moderate Buy” consensus with an average price target of $375.54, while the company declared a $2.33 quarterly dividend.
• Risks include margin pressure and weaker spending on major renovation projects; additionally, CFO Richard McPhail sold 5,989 shares worth about $2.1 million, reducing his holdings by 11.1%.

SCS Capital Management LLC purchased a new stake in The Home Depot, Inc. (NYSE:HD - Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the SEC. The institutional investor purchased 9,170 shares of the home improvement retailer's stock, valued at approximately $3,234,000.

Several other hedge funds have also recently bought and sold shares of the stock. CORDA Investment Management LLC. bought a new stake in shares of Home Depot during the second quarter worth approximately $1,337,000. M3 Wealth Management LLC bought a new position in shares of Home Depot during the second quarter worth approximately $2,526,000. Bank of New York Mellon Corp bought a new position in shares of Home Depot during the second quarter worth approximately $2,777,396,000. Sandro Wealth Management LLC acquired a new stake in Home Depot during the 2nd quarter worth approximately $2,130,000. Finally, Leeward Financial Partners LLC acquired a new stake in Home Depot during the 2nd quarter worth approximately $254,000. 70.86% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

HD has been the topic of a number of research reports. DA Davidson reaffirmed a "buy" rating and issued a $377.00 price objective on shares of Home Depot in a report on Wednesday. KeyCorp reissued a "sector weight" rating on shares of Home Depot in a research report on Wednesday. Guggenheim restated a "buy" rating and issued a $425.00 price target on shares of Home Depot in a research note on Wednesday. Gordon Haskett upped their price target on shares of Home Depot from $320.00 to $330.00 in a research note on Friday, June 12th. Finally, TD Cowen reiterated a "buy" rating on shares of Home Depot in a research note on Monday, August 10th. Eighteen investment 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, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $375.54.

Insiders Place Their Bets

In other Home Depot news, CFO Richard V. Mcphail sold 5,989 shares of the business's stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $348.40, for a total transaction of $2,086,567.60. Following the sale, the chief financial officer directly owned 48,104 shares of the company's stock, valued at $16,759,433.60. The trade was a 11.07% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 0.08% of the stock is owned by insiders.

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

Home Depot Stock Up 0.5%

Shares of NYSE HD opened at $336.04 on Friday. The company has a market cap of $335.07 billion, a price-to-earnings ratio of 23.52, a PEG ratio of 3.70 and a beta of 0.95. The company has a current ratio of 1.08, a quick ratio of 0.28 and a debt-to-equity ratio of 2.64. The stock has a 50-day moving average price of $340.86 and a two-hundred day moving average price of $340.46. The Home Depot, Inc. has a 12 month low of $289.10 and a 12 month high of $426.75.

Home Depot (NYSE:HD - Get Free Report) last issued its earnings results on Tuesday, August 18th. The home improvement retailer reported $4.92 earnings per share 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 for the quarter, compared to analyst estimates of $47.24 billion. During the same quarter last year, the business posted $4.68 earnings per share. The company's quarterly revenue was up 5.7% on a year-over-year basis. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. As a group, analysts forecast that The Home Depot, Inc. will post 14.99 earnings per share for the current fiscal year.

Home Depot Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 17th. Investors of record on Thursday, September 3rd will be given a dividend of $2.33 per share. The ex-dividend date is Thursday, September 3rd. This represents a $9.32 annualized dividend and a yield of 2.8%. Home Depot's dividend payout ratio (DPR) is currently 65.22%.

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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