UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC Sells 385,020 Shares of The Home Depot, Inc. $HD

Key Points

• UBS Asset Management reduced its Home Depot stake by 4.1% in the second quarter, selling 385,020 shares and retaining 9.08 million shares valued at approximately $3.2 billion. Institutional investors collectively own 70.86% of the company.
• Home Depot exceeded quarterly expectations, reporting $4.92 in adjusted earnings per share 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.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $375.54, but several firms have lowered targets and future EPS estimates. Higher mortgage rates, weak housing activity and limited homeowner mobility remain key risks to sales growth.

UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC reduced its holdings in The Home Depot, Inc. (NYSE:HD - Free Report) by 4.1% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 9,083,559 shares of the home improvement retailer's stock after selling 385,020 shares during the quarter. Home Depot makes up approximately 0.6% of UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC's holdings, making the stock its 25th largest holding. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC owned about 0.91% of Home Depot worth $3,203,590,000 at the end of the most recent quarter.

Other large investors have also bought and sold shares of the company. Curio Wealth LLC raised its position in Home Depot by 13.5% in the 4th quarter. Curio Wealth LLC now owns 218 shares of the home improvement retailer's stock valued at $76,000 after purchasing an additional 26 shares during the last quarter. Moneco Advisors LLC increased its stake in shares of Home Depot by 0.3% in the fourth quarter. Moneco Advisors LLC now owns 8,743 shares of the home improvement retailer's stock valued at $3,008,000 after buying an additional 27 shares in the last quarter. Noesis Capital Mangement Corp raised its holdings in shares of Home Depot by 1.5% in the fourth quarter. Noesis Capital Mangement Corp now owns 1,770 shares of the home improvement retailer's stock valued at $609,000 after buying an additional 27 shares during the last quarter. Eubel Brady & Suttman Asset Management Inc. lifted its position in Home Depot by 1.3% during the 4th quarter. Eubel Brady & Suttman Asset Management Inc. now owns 2,130 shares of the home improvement retailer's stock worth $733,000 after buying an additional 27 shares in the last quarter. Finally, Mill Capital Management LLC grew its holdings in Home Depot by 0.4% during the 4th quarter. Mill Capital Management LLC now owns 7,377 shares of the home improvement retailer's stock worth $2,538,000 after acquiring an additional 27 shares during the last quarter. 70.86% of the stock is currently owned by institutional investors.

Key Headlines Impacting Home Depot

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

Analysts Set New Price Targets

A number of equities analysts have weighed in on HD shares. TD Cowen reaffirmed a "buy" rating on shares of Home Depot in a research note on Monday, August 10th. JPMorgan Chase & Co. decreased their price target on shares of Home Depot from $423.00 to $396.00 and set an "overweight" rating on the stock in a research note on Wednesday, May 20th. Telsey Advisory Group dropped their price objective on shares of Home Depot from $435.00 to $410.00 and set an "outperform" rating for the company in a research report on Wednesday, May 20th. Robert W. Baird dropped their price objective on shares of Home Depot from $430.00 to $380.00 and set an "outperform" rating for the company in a research report on Wednesday, May 20th. Finally, Mizuho upped their price objective on Home Depot from $385.00 to $390.00 and gave the stock an "outperform" rating in a report on Wednesday, August 19th. Eighteen investment analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $375.54.

Insider Buying and Selling

In related news, EVP Michael Rowe sold 710 shares of the company's stock in a transaction dated Wednesday, August 26th. The stock was 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 owned 6,838 shares in the company, valued at approximately $2,302,764.88. This represents a 9.41% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, EVP Teresa Roseborough sold 2,455 shares of the firm's stock in a transaction dated Friday, August 28th. The stock was 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 in the company, valued at approximately $4,622,834.97. This trade represents a 14.86% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 9,154 shares of company stock valued at $3,132,798 over the last three months. Company insiders own 0.08% of the company's stock.

Home Depot Stock Down 0.2%

Shares of NYSE HD opened at $317.79 on Friday. The firm has a market capitalization of $317.06 billion, a PE ratio of 22.24, a price-to-earnings-growth ratio of 3.51 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. The Home Depot, Inc. has a 1 year low of $289.10 and a 1 year high of $426.75. The firm's 50-day moving average is $339.90 and its 200-day moving average is $336.51.

Home Depot (NYSE:HD - Get Free Report) last announced its quarterly earnings data on Tuesday, August 18th. The home improvement retailer reported $4.92 earnings per share for the quarter, beating the consensus estimate of $4.73 by $0.19. Home Depot had a net margin of 8.41% and a return on equity of 106.42%. The business had revenue of $47.86 billion for the quarter, compared to analyst estimates of $47.24 billion. During the same period in the prior year, the business posted $4.68 earnings per share. Home Depot's revenue 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. Equities analysts expect that The Home Depot, Inc. will post 15 EPS for the current year.

Home Depot Announces Dividend

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