The Home Depot, Inc. $HD Shares Sold by Strategic Advisors LLC

Key Points

• Strategic Advisors LLC cut its Home Depot stake by 32% in the second quarter, selling 13,317 shares and retaining 28,286 shares valued at approximately $10.0 million. Institutional investors collectively own 70.86% of the stock.
• Home Depot exceeded quarterly expectations, reporting $4.92 in EPS and $47.86 billion in revenue, with revenue up 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 with an average price target of $375.54, but several firms have reduced their targets. Elevated mortgage rates and pressure on consumer spending remain risks to remodeling demand and future growth.

Strategic Advisors LLC decreased its holdings in shares of The Home Depot, Inc. (NYSE:HD - Free Report) by 32.0% in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 28,286 shares of the home improvement retailer's stock after selling 13,317 shares during the quarter. Home Depot makes up approximately 1.9% of Strategic Advisors LLC's portfolio, making the stock its 12th biggest position. Strategic Advisors LLC's holdings in Home Depot were worth $9,976,000 as of its most recent SEC filing.

Other hedge funds also recently added to or reduced their stakes in the company. Advocacy Wealth Management LLC raised its holdings in Home Depot by 8.3% during the second quarter. Advocacy Wealth Management LLC now owns 3,480 shares of the home improvement retailer's stock worth $1,227,000 after purchasing an additional 268 shares in the last quarter. CTC Alternative Strategies Ltd. acquired a new position in shares of Home Depot in the 2nd quarter valued at $240,000. Benjamin Edwards Inc. grew its position in shares of Home Depot by 0.3% in the 2nd quarter. Benjamin Edwards Inc. now owns 199,705 shares of the home improvement retailer's stock valued at $70,474,000 after buying an additional 660 shares during the last quarter. Provident Trust Co. grew its position in shares of Home Depot by 9.9% in the 2nd quarter. Provident Trust Co. now owns 831,190 shares of the home improvement retailer's stock valued at $293,144,000 after buying an additional 74,910 shares during the last quarter. Finally, Northwestern Mutual Wealth Management Co. raised its stake in Home Depot by 5.7% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 336,110 shares of the home improvement retailer's stock worth $118,539,000 after acquiring an additional 18,005 shares in the last quarter. 70.86% of the stock is currently owned by hedge funds and other institutional investors.

Home Depot Stock Up 0.9%

Home Depot stock opened at $320.94 on Friday. The stock has a 50 day moving average of $339.35 and a two-hundred day moving average of $336.40. The Home Depot, Inc. has a twelve month low of $289.10 and a twelve month high of $426.75. The stock has a market capitalization of $320.20 billion, a price-to-earnings ratio of 22.46, a PEG ratio of 3.50 and a beta of 0.95. The company has a current ratio of 1.08, a quick ratio of 0.31 and a debt-to-equity ratio of 2.64.

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

Home Depot Announces Dividend

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

Key Stories Impacting Home Depot

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

• Positive Sentiment: Retail earnings point to a relatively resilient higher-income consumer. Home Depot and Lowe’s reported solid home-improvement sales, suggesting demand for repairs and larger projects remains healthier than spending at some value-oriented retailers. Retail Earnings Just Exposed a Bigger Divide in the U.S. Consumer Economy
• Positive Sentiment: Analysts at Zacks updated estimates for Home Depot’s fiscal third-quarter earnings, providing a fresh valuation and earnings catalyst following the company’s prior quarterly beat. Home Depot most recently reported earnings of $4.92 per share versus a $4.73 consensus estimate, with revenue also exceeding forecasts. Zacks Research Estimates Home Depot's Q3 Earnings
• Neutral Sentiment: The stock’s valuation is near the middle of its peer group, but analysts question whether its operating performance and growth have fallen behind competitors. This creates potential upside if productivity improves, but also limits enthusiasm until growth reaccelerates. The Gap Between HD Stock And Its Own Numbers
• Negative Sentiment: Mortgage rates recently reached a one-year high following a global bond-market sell-off. Elevated borrowing costs can discourage home purchases, remodeling projects and other large-ticket transactions that drive Home Depot’s sales. Mortgage Rates Just Hit a 1-Year High
• Negative Sentiment: Some investors view weakness in consumer-focused stocks, including Home Depot, as a warning that middle-income households are under pressure. That macro concern could weigh on discretionary home-improvement spending and the broader retail sector. Wall Street worried about GOP in midterms
• Negative Sentiment: One market analysis cited Home Depot’s transition to positive free cash flow in the early 2000s as evidence that growth had slowed, reinforcing concerns that the company’s mature business may offer limited expansion compared with faster-growing retailers. Home Depot stock information

Analysts Set New Price Targets

Several research firms have issued reports on HD. BNP Paribas Exane decreased their price objective on shares of Home Depot from $348.00 to $325.00 and set a "neutral" rating for the company in a research note on Tuesday, May 19th. Wolfe Research cut Home Depot from an "outperform" rating to a "peer perform" rating in a research report on Tuesday, June 23rd. Evercore decreased their target price on Home Depot from $415.00 to $400.00 and set an "outperform" rating for the company in a research report on Wednesday, May 20th. JPMorgan Chase & Co. dropped their price target on Home Depot from $423.00 to $396.00 and set an "overweight" rating on the stock in a research note on Wednesday, May 20th. Finally, Gordon Haskett lifted their price target on Home Depot from $320.00 to $330.00 in a research report on Friday, June 12th. Eighteen investment analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $375.54.

Insider Transactions at Home Depot

In other news, EVP Teresa Roseborough sold 2,455 shares of Home Depot stock in a transaction dated Friday, August 28th. The shares were sold at an average price of $328.77, for a total value of $807,130.35. Following the sale, the executive vice president owned 14,061 shares of the company's stock, valued at $4,622,834.97. The trade was a 14.86% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Michael Rowe sold 710 shares of the business's stock in a transaction dated Wednesday, August 26th. The stock was sold at an average price of $336.76, for a total transaction of $239,099.60. Following the transaction, the executive vice president owned 6,838 shares in the company, 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. In the last quarter, insiders sold 9,154 shares of company stock worth $3,132,798. Company insiders own 0.08% of the company's stock.

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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