The Home Depot, Inc. $HD Shares Sold by Fundsmith Investment Services LTD.

Key Points

• Fundsmith Investment Services LTD. reduced its Home Depot stake by 33.7% in the fourth quarter, selling 4,730 shares and leaving it with 9,321 shares worth about $3.21 million.
• Home Depot reported better-than-expected quarterly results, with EPS of $3.43 versus $3.41 estimated and revenue of $41.77 billion, up 4.8% year over year. The company also guided FY 2026 EPS at 14.690-15.278.
• The stock was up 2.1% to $336.85, while analysts maintained a Moderate Buy consensus despite several target price cuts. Home Depot also announced a quarterly dividend of $2.33 per share, implying a 2.8% yield.

Fundsmith Investment Services LTD. cut its holdings in The Home Depot, Inc. (NYSE:HD - Free Report) by 33.7% during the fourth quarter, according to its most recent Form 13F filing with the SEC. The fund owned 9,321 shares of the home improvement retailer's stock after selling 4,730 shares during the period. Home Depot accounts for about 0.1% of Fundsmith Investment Services LTD.'s portfolio, making the stock its 22nd largest holding. Fundsmith Investment Services LTD.'s holdings in Home Depot were worth $3,207,000 at the end of the most recent quarter.

Several other hedge funds also recently added to or reduced their stakes in the business. Norges Bank acquired a new stake in shares of Home Depot during the 4th quarter worth about $4,850,329,000. Wellington Management Group LLP lifted its position in Home Depot by 60.8% in the third quarter. Wellington Management Group LLP now owns 10,143,089 shares of the home improvement retailer's stock valued at $4,109,878,000 after buying an additional 3,836,051 shares during the last quarter. Cardano Risk Management B.V. lifted its position in Home Depot by 901.5% in the fourth quarter. Cardano Risk Management B.V. now owns 3,290,540 shares of the home improvement retailer's stock valued at $1,132,275,000 after buying an additional 2,961,979 shares during the last quarter. Parnassus Investments LLC boosted its stake in Home Depot by 712.3% during the fourth quarter. Parnassus Investments LLC now owns 2,080,538 shares of the home improvement retailer's stock worth $715,913,000 after buying an additional 1,824,409 shares during the period. Finally, Vanguard Group Inc. increased its position in shares of Home Depot by 1.3% during the fourth quarter. Vanguard Group Inc. now owns 99,635,779 shares of the home improvement retailer's stock valued at $34,284,672,000 after acquiring an additional 1,325,748 shares during the last quarter. 70.86% of the stock is currently owned by hedge funds and other institutional investors.

Home Depot Stock Up 2.1%

Shares of NYSE:HD opened at $336.85 on Wednesday. The firm has a 50 day simple moving average of $322.91 and a 200-day simple moving average of $346.83. The Home Depot, Inc. has a twelve month low of $289.10 and a twelve month high of $426.75. The company has a current ratio of 1.04, a quick ratio of 0.28 and a debt-to-equity ratio of 3.23. The company has a market capitalization of $335.88 billion, a PE ratio of 23.92, a P/E/G ratio of 3.81 and a beta of 0.97.

Home Depot (NYSE:HD - Get Free Report) last released its quarterly earnings data on Tuesday, May 19th. The home improvement retailer reported $3.43 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.41 by $0.02. The company had revenue of $41.77 billion during the quarter, compared to the consensus estimate of $41.59 billion. Home Depot had a net margin of 8.41% and a return on equity of 117.24%. Home Depot's revenue for the quarter was up 4.8% on a year-over-year basis. During the same quarter in the prior year, the firm posted $3.56 earnings per share. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. On average, equities analysts predict that The Home Depot, Inc. will post 15.01 EPS for the current fiscal year.

Home Depot Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, June 18th. Investors of record on Thursday, June 4th will be given a $2.33 dividend. The ex-dividend date is Thursday, June 4th. This represents a $9.32 annualized dividend and a yield of 2.8%. Home Depot's dividend payout ratio is 66.19%.

Analyst Upgrades and Downgrades

A number of analysts have issued reports on HD shares. Robert W. Baird cut 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. Wells Fargo & Company dropped their price objective on Home Depot from $375.00 to $360.00 and set an "overweight" rating for the company in a research note on Wednesday, May 20th. Stifel Nicolaus cut their price objective on Home Depot from $375.00 to $320.00 and set a "hold" rating on the stock in a report on Monday, May 18th. HSBC decreased their target price on Home Depot from $392.00 to $310.00 and set a "hold" rating on the stock in a research note on Wednesday, May 20th. Finally, Weiss Ratings raised Home Depot from a "hold (c-)" rating to a "hold (c)" rating in a research report on Tuesday, June 9th. Nineteen analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $371.71.

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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