The Home Depot, Inc. $HD Shares Sold by Washington Trust Bank

Key Points

• Washington Trust Bank cut its Home Depot stake by 15.1% in the second quarter, selling 6,584 shares and retaining 37,096 shares valued at approximately $13.1 million. Institutional investors collectively own 70.86% of the company.
• Home Depot exceeded quarterly expectations, reporting $4.92 in adjusted EPS and $47.86 billion in revenue, up 5.7% year over year. The company also declared a quarterly dividend of $2.33 per share, representing a 2.9% annualized yield.
• The outlook remains mixed: analysts maintain a “Moderate Buy” consensus with a $375.54 price target, but high mortgage rates, weak housing activity and downward revisions to future EPS estimates could limit growth.

Washington Trust Bank trimmed its stake in shares of The Home Depot, Inc. (NYSE:HD - Free Report) by 15.1% in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 37,096 shares of the home improvement retailer's stock after selling 6,584 shares during the period. Home Depot comprises about 0.9% of Washington Trust Bank's holdings, making the stock its 28th biggest position. Washington Trust Bank's holdings in Home Depot were worth $13,083,000 at the end of the most recent reporting period.

Several other institutional investors have also modified their holdings of HD. Bank of Nova Scotia acquired a new position in Home Depot in the second quarter valued at $118,723,000. Gator Capital Management LLC purchased a new position in shares of Home Depot during the 4th quarter worth about $3,693,000. AFT Forsyth & Company Inc. purchased a new position in shares of Home Depot during the 2nd quarter worth about $1,896,000. Field & Main Bank acquired a new stake in shares of Home Depot in the second quarter worth approximately $6,286,000. Finally, King Luther Capital Management Corp boosted its position in shares of Home Depot by 0.6% in the fourth quarter. King Luther Capital Management Corp now owns 1,240,478 shares of the home improvement retailer's stock worth $426,848,000 after acquiring an additional 7,180 shares during the last quarter. Hedge funds and other institutional investors own 70.86% of the company's stock.

Insider Buying and Selling

In other news, EVP Michael F. Rowe sold 710 shares of the firm'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 completion of the sale, the executive vice president directly owned 6,838 shares in the company, valued at $2,302,764.88. This trade represents a 9.41% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Teresa Roseborough sold 2,455 shares of the firm's 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. This represents a 14.86% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 9,154 shares of company stock valued at $3,132,798 in the last quarter. Company insiders own 0.08% of the company's stock.

Home Depot News Summary

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

• Positive Sentiment: Home Depot’s professional-customer growth and technology investments could support a recovery. The company has expanded its AI-powered Magic Apron tools across U.S. stores, while one analysis argues the stock may be about 15% undervalued if its Pro business gains momentum. Home Depot Could Be 15% Undervalued on Its Pro Growth Narrative
• Neutral Sentiment: Zacks Research raised its fiscal 2027 EPS forecast slightly to $15.03 from $14.95, broadly matching the current consensus estimate of $15.00. However, this isolated increase was accompanied by several reductions to later quarterly and annual forecasts. Home Depot Analyst Estimates
• Neutral Sentiment: Recent operating results remain a support for the shares: Home Depot exceeded quarterly earnings and revenue expectations, with revenue up 5.7% year over year. The key concern is whether that growth can accelerate amid a weak housing environment.
• Negative Sentiment: Mortgage rates have reached a one-year high following a global bond sell-off. Higher borrowing costs can discourage home purchases, renovations and moves, limiting demand for big-ticket projects at Home Depot and Lowe’s. Mortgage Rates Just Hit a One-Year High
• Negative Sentiment: Homeowners remain locked into older, cheaper mortgages, and the probability of moving within 12 months has fallen to a record-low 13.5%. Home Depot reportedly sees “no sign” of a housing turnaround, pressuring near-term sales prospects. Americans Stop Moving as Mortgage Lock-In Persists
• Negative Sentiment: Analysts have cut multiple future EPS estimates, including fiscal 2028 EPS to $16.05 from $16.23 and fiscal 2029 EPS to $17.41 from $17.62. The revisions suggest slower expected growth and weigh on valuation. The Gap Between HD Stock and Its Own Numbers
• Negative Sentiment: Comparisons with Costco and Lowe’s highlight concerns about Home Depot’s relative performance, dividend coverage and competitive position. Bearish options activity, including a proposed bear put spread, further reflects expectations that the stock could remain under pressure. Home Depot Bear Put Spread Could Return 181 Percent

Home Depot Stock Down 0.2%

NYSE HD opened at $317.79 on Friday. The stock has a market cap of $317.06 billion, a PE ratio of 22.24, a P/E/G ratio of 3.51 and a beta of 0.95. The Home Depot, Inc. has a fifty-two week low of $289.10 and a fifty-two week high of $426.75. The business has a 50 day moving average price of $339.90 and a two-hundred day moving average price of $336.51. The company has a quick ratio of 0.31, a current ratio of 1.08 and a debt-to-equity ratio of 2.64.

Home Depot (NYSE:HD - Get Free Report) last issued its quarterly earnings data on Tuesday, August 18th. The home improvement retailer reported $4.92 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.73 by $0.19. The company had revenue of $47.86 billion during the quarter, compared to the consensus estimate of $47.24 billion. Home Depot had a net margin of 8.41% and a return on equity of 106.42%. Home Depot's revenue for the quarter was up 5.7% on a year-over-year basis. During the same quarter last year, the company earned $4.68 earnings per share. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. As a group, sell-side analysts predict that The Home Depot, Inc. will post 15 EPS for the current fiscal year.

Home Depot Dividend Announcement

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

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on HD. Weiss Ratings raised shares of Home Depot from a "hold (c-)" rating to a "hold (c)" rating in a research note on Tuesday, July 7th. UBS Group dropped their price objective on Home Depot from $430.00 to $420.00 and set a "buy" rating for the company in a report on Wednesday, August 19th. KeyCorp reaffirmed a "sector weight" rating on shares of Home Depot in a research report on Wednesday, August 19th. Piper Sandler reduced their price target on shares of Home Depot from $422.00 to $421.00 and set an "overweight" rating on the stock in a research report on Wednesday, May 20th. Finally, The Goldman Sachs Group cut their target price on shares of Home Depot from $409.00 to $390.00 and set a "buy" rating on the stock in a research note on Wednesday, May 20th. Eighteen investment analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $375.54.

About Home Depot

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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