The Home Depot, Inc. $HD Stock: Sterling Capital Management LLC Decreases Stake

Key Points

• Sterling Capital Management reduced its Home Depot stake by 58.7% in the third quarter, selling 74,586 shares and retaining 52,543 shares valued at approximately $14.95 million. Institutional investors collectively own 70.86% of the company.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $375.93. Home Depot’s latest quarterly results exceeded expectations, reporting $4.92 in EPS and $47.86 billion in revenue.
• Home Depot shares recently traded at $319.73, while the company declared a quarterly dividend of $2.33, equivalent to a $9.32 annualized payout and a 2.9% yield. Ongoing risks include elevated mortgage rates, weak housing activity and recent insider selling.

Sterling Capital Management LLC lowered its position in shares of The Home Depot, Inc. (NYSE:HD - Free Report) by 58.7% in the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 52,543 shares of the home improvement retailer's stock after selling 74,586 shares during the quarter. Sterling Capital Management LLC's holdings in Home Depot were worth $14,948,000 at the end of the most recent quarter.

Other hedge funds have also recently modified their holdings of the company. Zeit Capital LLC purchased a new position in shares of Home Depot during the second quarter valued at approximately $26,000. Merkkuri Wealth Advisors LLC bought a new stake in shares of Home Depot in the first quarter worth approximately $28,000. Principia Wealth Advisory LLC raised its stake in Home Depot by 60.4% during the 2nd quarter. Principia Wealth Advisory LLC now owns 85 shares of the home improvement retailer's stock valued at $30,000 after buying an additional 32 shares during the last quarter. Networth Advisors LLC lifted its holdings in Home Depot by 54.1% in the first quarter. Networth Advisors LLC now owns 94 shares of the home improvement retailer's stock valued at $31,000 after acquiring an additional 33 shares during the period. Finally, Navigoe LLC purchased a new position in shares of Home Depot in the second quarter worth approximately $32,000. Institutional investors own 70.86% of the company's stock.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on HD. TD Cowen reissued a "buy" rating on shares of Home Depot in a research report on Monday, August 10th. Wells Fargo & Company lifted their target price on Home Depot from $360.00 to $400.00 and gave the company an "overweight" rating in a research report on Tuesday, August 11th. DA Davidson reissued a "buy" rating and set a $377.00 price target on shares of Home Depot in a report on Wednesday, August 19th. Mizuho lifted their price objective on Home Depot from $385.00 to $390.00 and gave the company an "outperform" rating in a research report on Wednesday, August 19th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Home Depot in a research report on Friday, October 2nd. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, thirteen have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $375.93.

Trending Headlines about Home Depot

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

• Positive Sentiment: Home Depot is developing the “Orange Exchange,” a supplier initiative intended to connect the retailer with more small businesses. The effort could improve product quality, assortment and availability while supporting long-term customer demand. Home Depot's latest move is good for customers and the U.S. economy
• Positive Sentiment: Recent coverage highlights potential support from lower interest rates, which could gradually stimulate home sales, remodeling activity and larger renovation projects. Home Depot stock rebounds as rate cuts stir home-improvement demand
• Positive Sentiment: Analyst earnings and revenue estimate revisions, along with the company’s growing distribution capabilities, have renewed attention on Home Depot’s valuation. The latest quarterly results also exceeded consensus expectations, with earnings of $4.92 per share and revenue of $47.86 billion.
• Positive Sentiment: Several major institutional investors increased their Home Depot holdings during the latest reported quarter, while the median analyst price target cited by Quiver Quantitative is $375, implying potential upside from recent trading levels.
• Neutral Sentiment: The Home Depot Foundation pledged $1 billion through 2032 for veteran housing and related causes. The announcement strengthens the company’s social-impact profile but is unlikely to materially affect near-term earnings. The Home Depot Foundation Pledges $1 Billion to Veteran Causes by 2032
• Negative Sentiment: Risk-off trading, higher oil prices and persistently elevated mortgage rates are weighing on housing activity and economically sensitive retailers. Soft home sales and affordability concerns could delay big-ticket renovation demand.
• Negative Sentiment: Reported insider activity showed four sales and no purchases over the past six months, a potentially cautious signal, although the transactions do not necessarily indicate a change in the company’s fundamentals.

Home Depot Price Performance

HD traded down $8.00 on Friday, hitting $319.73. 3,655,361 shares of the company's stock traded hands, compared to its average volume of 5,401,968. The Home Depot, Inc. has a one year low of $277.15 and a one year high of $397.63. The company has a current ratio of 1.08, a quick ratio of 0.31 and a debt-to-equity ratio of 2.64. The firm has a market cap of $318.99 billion, a price-to-earnings ratio of 22.37, a P/E/G ratio of 2.33 and a beta of 1.00. The company's 50 day simple moving average is $309.69 and its 200-day simple moving average is $323.89.

Home Depot (NYSE:HD - Get Free Report) last released 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 firm had revenue of $47.86 billion for the quarter, compared to analysts' expectations of $47.24 billion. Home Depot had a net margin of 8.41% and a return on equity of 106.42%. The company's revenue for the quarter was up 5.7% compared to the same quarter last year. During the same quarter last year, the business posted $4.68 earnings per share. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. As a group, research analysts anticipate that The Home Depot, Inc. will post 15.01 EPS for the current year.

Home Depot Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, September 17th. Shareholders of record on Thursday, September 3rd were paid a $2.33 dividend. The ex-dividend date was Thursday, September 3rd. This represents a $9.32 annualized dividend and a yield of 2.9%. Home Depot's payout ratio is presently 65.22%.

Insider Activity at Home Depot

In other Home Depot news, CAO Kimberly Scardino sold 675 shares of the stock in a transaction dated Thursday, September 10th. The shares were sold at an average price of $305.95, for a total transaction of $206,516.25. Following the completion of the transaction, the chief accounting officer owned 8,189 shares of the company's stock, valued at $2,505,424.55. This represents a 7.62% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 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 transaction, the executive vice president owned 14,061 shares of the company's stock, valued at approximately $4,622,834.97. The trade was a 14.86% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 9,829 shares of company stock worth $3,339,314 in the last quarter. 0.08% of the stock is owned by company insiders.

About Home Depot

The Home Depot, Inc is a home improvement retailer serving do-it-yourself customers, professional contractors, and other building and maintenance professionals. The company sells a broad selection of building materials, hardware, tools, appliances, paint, plumbing and electrical supplies, flooring, lighting, lawn and garden products, and home décor.

In addition to merchandise, Home Depot offers services such as product delivery, tool and equipment rental, credit services, and installation for selected products.

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