The Home Depot, Inc. $HD Shares Sold by Smead Capital Management Inc.

Key Points

• Smead Capital Management Inc. has reduced its stake in Home Depot by 8.6%, currently holding 460,325 shares, valued at approximately $168.7 million, which makes it the firm's 19th largest holding.
• Home Depot reported $4.68 earnings per share for the last quarter, slightly missing analysts' expectations of $4.69, with a total revenue of $45.28 billion.
• The company declared a quarterly dividend of $2.30 per share, representing an annual yield of 2.3%, with the dividend payout ratio set at 62.50%.

Smead Capital Management Inc. reduced its stake in The Home Depot, Inc. (NYSE:HD - Free Report) by 8.6% in the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 460,325 shares of the home improvement retailer's stock after selling 43,550 shares during the quarter. Home Depot makes up approximately 2.9% of Smead Capital Management Inc.'s investment portfolio, making the stock its 19th largest position. Smead Capital Management Inc.'s holdings in Home Depot were worth $168,705,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds have also recently modified their holdings of the company. State of Wyoming boosted its holdings in Home Depot by 45.8% in the 1st quarter. State of Wyoming now owns 971 shares of the home improvement retailer's stock valued at $356,000 after purchasing an additional 305 shares during the last quarter. TD Capital Management LLC raised its position in shares of Home Depot by 30.3% during the 1st quarter. TD Capital Management LLC now owns 666 shares of the home improvement retailer's stock valued at $244,000 after buying an additional 155 shares during the period. Trexquant Investment LP raised its position in shares of Home Depot by 509.1% during the 1st quarter. Trexquant Investment LP now owns 104,458 shares of the home improvement retailer's stock valued at $38,283,000 after buying an additional 87,308 shares during the period. Gerber Kawasaki Wealth & Investment Management lifted its holdings in Home Depot by 0.9% in the first quarter. Gerber Kawasaki Wealth & Investment Management now owns 38,091 shares of the home improvement retailer's stock valued at $13,960,000 after acquiring an additional 324 shares during the last quarter. Finally, Itau Unibanco Holding S.A. purchased a new position in Home Depot in the first quarter worth approximately $2,678,000. Hedge funds and other institutional investors own 70.86% of the company's stock.

Home Depot Price Performance

HD stock traded down $0.36 during midday trading on Tuesday, hitting $406.41. 2,104,211 shares of the stock were exchanged, compared to its average volume of 3,536,280. The Home Depot, Inc. has a fifty-two week low of $326.31 and a fifty-two week high of $439.37. The company has a debt-to-equity ratio of 4.31, a quick ratio of 0.34 and a current ratio of 1.15. The stock's 50-day moving average price is $381.41 and its 200-day moving average price is $370.83. The stock has a market cap of $404.53 billion, a price-to-earnings ratio of 27.61, a PEG ratio of 3.86 and a beta of 1.00.

Home Depot (NYSE:HD - Get Free Report) last issued its quarterly earnings data on Tuesday, August 19th. The home improvement retailer reported $4.68 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.69 by ($0.01). The company had revenue of $45.28 billion during the quarter, compared to analysts' expectations of $45.43 billion. Home Depot had a net margin of 8.86% and a return on equity of 193.99%. The firm's revenue was up 4.9% compared to the same quarter last year. During the same quarter in the prior year, the company earned $4.60 earnings per share. Home Depot has set its FY 2025 guidance at 14.940-14.940 EPS. Research analysts predict that The Home Depot, Inc. will post 15.13 earnings per share for the current year.

Home Depot Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 18th. Shareholders of record on Thursday, September 4th will be paid a dividend of $2.30 per share. The ex-dividend date is Thursday, September 4th. This represents a $9.20 annualized dividend and a yield of 2.3%. Home Depot's dividend payout ratio is currently 62.50%.

Insider Buying and Selling

In other news, CFO Richard V. Mcphail sold 3,369 shares of Home Depot stock in a transaction dated Wednesday, August 20th. The stock was sold at an average price of $403.66, for a total value of $1,359,930.54. Following the transaction, the chief financial officer directly owned 45,455 shares of the company's stock, valued at $18,348,365.30. The trade was a 6.90% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, EVP Angie Brown sold 1,000 shares of the company's stock in a transaction on Wednesday, August 20th. The stock was sold at an average price of $404.07, for a total transaction of $404,070.00. Following the sale, the executive vice president directly owned 3,837 shares of the company's stock, valued at approximately $1,550,416.59. This trade represents a 20.67% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 46,532 shares of company stock worth $18,648,987. Corporate insiders own 0.10% of the company's stock.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on the company. Evercore ISI set a $400.00 target price on Home Depot and gave the stock an "outperform" rating in a research note on Thursday, May 22nd. Mizuho raised their price objective on Home Depot from $435.00 to $450.00 and gave the stock an "outperform" rating in a research report on Wednesday, August 20th. DA Davidson reaffirmed a "buy" rating and issued a $450.00 price objective on shares of Home Depot in a research note on Tuesday, August 19th. Telsey Advisory Group reaffirmed an "outperform" rating and set a $455.00 target price on shares of Home Depot in a research note on Tuesday, August 19th. Finally, JPMorgan Chase & Co. decreased their price objective on Home Depot from $460.00 to $452.00 and set an "overweight" rating for the company in a research note on Wednesday, August 20th. One investment analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat, Home Depot has a consensus rating of "Moderate Buy" and a consensus target price of $432.52.

Home Depot Company Profile

The Home Depot, Inc operates as a home improvement retailer in the United States and internationally. It sells various building materials, home improvement products, lawn and garden products, and décor products, as well as facilities maintenance, repair, and operations products. The company also offers installation services for flooring, water heaters, bath, garage doors, cabinets, cabinet makeovers, countertops, sheds, furnaces and central air systems, and windows.