USS Investment Management Ltd Reduces Stake in The Home Depot, Inc. $HD

Key Points

• USS Investment Management Ltd cut its Home Depot stake by 10.5% in the first quarter, selling 62,110 shares and leaving it with 531,317 shares valued at about $174.7 million.
• Other institutional investors were mixed on the stock, with several increasing holdings; overall, institutional ownership remains high at 70.86% of Home Depot shares.
• Home Depot recently beat quarterly earnings and revenue estimates, reported $3.43 EPS on $41.77 billion in revenue, and maintained a quarterly dividend of $2.33 per share for a 2.7% yield.

USS Investment Management Ltd lowered its stake in shares of The Home Depot, Inc. (NYSE:HD - Free Report) by 10.5% in the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 531,317 shares of the home improvement retailer's stock after selling 62,110 shares during the period. Home Depot accounts for 0.7% of USS Investment Management Ltd's investment portfolio, making the stock its 20th biggest holding. USS Investment Management Ltd owned approximately 0.05% of Home Depot worth $174,670,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds also recently modified their holdings of the stock. IFM Investors Pty Ltd lifted its stake in Home Depot by 3.5% in the first quarter. IFM Investors Pty Ltd now owns 202,320 shares of the home improvement retailer's stock valued at $66,541,000 after purchasing an additional 6,858 shares during the last quarter. Rexford Capital Inc. grew its holdings in Home Depot by 3.9% during the first quarter. Rexford Capital Inc. now owns 2,919 shares of the home improvement retailer's stock valued at $960,000 after purchasing an additional 109 shares during the period. Severin Investments LLC increased its position in Home Depot by 12.8% in the first quarter. Severin Investments LLC now owns 2,204 shares of the home improvement retailer's stock worth $725,000 after buying an additional 250 shares during the last quarter. Family Investment Center Inc. raised its stake in shares of Home Depot by 4.7% in the first quarter. Family Investment Center Inc. now owns 1,573 shares of the home improvement retailer's stock valued at $517,000 after buying an additional 70 shares during the period. Finally, Wagner Wealth Management LLC raised its stake in shares of Home Depot by 4.0% in the first quarter. Wagner Wealth Management LLC now owns 4,087 shares of the home improvement retailer's stock valued at $1,344,000 after buying an additional 159 shares during the period. Institutional investors own 70.86% of the company's stock.

Home Depot Stock Down 0.3%

Shares of NYSE HD opened at $351.50 on Thursday. The company has a quick ratio of 0.28, a current ratio of 1.04 and a debt-to-equity ratio of 3.23. The company has a market cap of $350.49 billion, a P/E ratio of 24.96, a P/E/G ratio of 4.07 and a beta of 0.97. The Home Depot, Inc. has a 52 week low of $289.10 and a 52 week high of $426.75. The business has a 50-day simple moving average of $323.33 and a two-hundred day simple moving average of $345.76.

Home Depot (NYSE:HD - Get Free Report) last announced its quarterly earnings results on Tuesday, May 19th. The home improvement retailer reported $3.43 earnings per share for the quarter, beating the consensus estimate of $3.41 by $0.02. Home Depot had a return on equity of 117.24% and a net margin of 8.41%.The firm had revenue of $41.77 billion for the quarter, compared to analysts' expectations of $41.59 billion. During the same period in the prior year, the business posted $3.56 earnings per share. The company's revenue was up 4.8% on a year-over-year basis. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. Research analysts anticipate that The Home Depot, Inc. will post 15.01 earnings per share for the current fiscal year.

Home Depot Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, June 18th. Investors of record on Thursday, June 4th were issued a dividend of $2.33 per share. This represents a $9.32 dividend on an annualized basis and a yield of 2.7%. The ex-dividend date of this dividend was Thursday, June 4th. Home Depot's dividend payout ratio is 66.19%.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on the company. BNP Paribas Exane cut their price target on Home Depot from $348.00 to $325.00 and set a "neutral" rating for the company in a research note on Tuesday, May 19th. Morgan Stanley lowered their price objective on Home Depot from $420.00 to $400.00 and set an "overweight" rating on the stock in a research note on Wednesday, May 20th. Argus dropped their price objective on shares of Home Depot from $425.00 to $400.00 and set a "buy" rating on the stock in a report on Thursday, May 21st. Evercore cut their target price on shares of Home Depot from $415.00 to $400.00 and set an "outperform" rating for the company in a research report on Wednesday, May 20th. Finally, Weiss Ratings downgraded shares of Home Depot from a "hold (c)" rating to a "hold (c-)" rating in a research note on Tuesday, June 23rd. Eighteen investment analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $371.71.

Home Depot Company 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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