Thornburg Investment Management Inc. Cuts Stake in The Home Depot, Inc. $HD

Key Points

• Thornburg Investment Management cut its Home Depot stake by 10.8% in the second quarter, selling 56,114 shares and retaining 464,895 shares worth approximately $164 million. Institutional investors collectively own 70.86% of the company.
• Home Depot recently beat quarterly earnings and revenue estimates, with revenue rising 5.7% year over year, while technology investments and professional-customer growth offer potential upside. However, higher mortgage rates, weak housing activity and downward revisions to future EPS forecasts continue to pressure the outlook.
• Analysts maintain a consensus “Moderate Buy” rating with an average price target of $375.54, but insider selling and mixed target-price revisions signal caution. The company also declared a quarterly dividend of $2.33 per share, representing a 2.9% annualized yield.

Thornburg Investment Management Inc. reduced its position in shares of The Home Depot, Inc. (NYSE:HD - Free Report) by 10.8% in the second quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 464,895 shares of the home improvement retailer's stock after selling 56,114 shares during the quarter. Home Depot accounts for about 1.6% of Thornburg Investment Management Inc.'s investment portfolio, making the stock its 19th biggest holding. Thornburg Investment Management Inc.'s holdings in Home Depot were worth $163,959,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently made changes to their positions in the company. Advocate Investing Services LLC bought a new stake in shares of Home Depot during the fourth quarter valued at approximately $25,000. Zeit Capital LLC purchased a new stake in Home Depot during the 2nd quarter valued at $26,000. Parvin Asset Management LLC increased its holdings in shares of Home Depot by 110.0% in the 3rd quarter. Parvin Asset Management LLC now owns 63 shares of the home improvement retailer's stock worth $26,000 after purchasing an additional 33 shares in the last quarter. Cache Advisors LLC purchased a new position in shares of Home Depot in the first quarter worth $27,000. Finally, Merkkuri Wealth Advisors LLC bought a new position in shares of Home Depot during the first quarter valued at $28,000. Institutional investors own 70.86% 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

Insider Activity at Home Depot

In related news, EVP Michael Rowe sold 710 shares of the stock in a transaction that occurred on Wednesday, August 26th. The shares were sold at an average price of $336.76, for a total value of $239,099.60. Following the completion of the sale, the executive vice president directly owned 6,838 shares of the company's stock, valued at approximately $2,302,764.88. This represents a 9.41% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Teresa Roseborough sold 2,455 shares of the company's stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $328.77, for a total transaction of $807,130.35. Following the completion of 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 ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 9,154 shares of company stock worth $3,132,798. 0.08% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on HD shares. HSBC lowered their target price on shares of Home Depot from $392.00 to $310.00 and set a "hold" rating on the stock in a research note on Wednesday, May 20th. UBS Group dropped their target price on shares of Home Depot from $430.00 to $420.00 and set a "buy" rating on the stock in a report on Wednesday, August 19th. Weiss Ratings raised shares of Home Depot from a "hold (c-)" rating to a "hold (c)" rating in a research report on Tuesday, July 7th. Oppenheimer decreased their target price on shares of Home Depot from $405.00 to $310.00 and set a "market perform" rating for the company in a research note on Monday, May 18th. Finally, JPMorgan Chase & Co. lowered their price target on Home Depot from $423.00 to $396.00 and set an "overweight" rating on the stock in a report on Wednesday, May 20th. Eighteen investment analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Home Depot presently has an average rating of "Moderate Buy" and a consensus price target of $375.54.

Home Depot Trading Down 0.2%

Shares of Home Depot stock opened at $317.79 on Friday. The company's fifty day simple moving average is $339.90 and its 200-day simple moving average is $336.51. The stock has a market capitalization 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 1-year low of $289.10 and a 1-year high of $426.75. The company has a debt-to-equity ratio of 2.64, a current ratio of 1.08 and a quick ratio of 0.31.

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 analysts' consensus estimates of $4.73 by $0.19. The firm 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%. The company's revenue for the quarter was up 5.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $4.68 EPS. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. As a group, equities analysts anticipate that The Home Depot, Inc. will post 15 earnings per share for the current year.

Home Depot Dividend Announcement

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

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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