Wealthfront Advisers LLC Makes New $41.99 Million Investment in The Home Depot, Inc. $HD

Key Points

• Wealthfront Advisers purchased a new $41.99 million stake in Home Depot during the second quarter, acquiring 119,059 shares. Institutional investors collectively own 70.86% of the company.
• Home Depot’s latest quarter exceeded expectations, with revenue rising 5.7% year over year to $47.86 billion and adjusted EPS of $4.92 versus the $4.73 consensus estimate. However, a $685 million tariff refund contributed to results, while high mortgage rates continue to shift demand toward smaller projects.
• The company declared a quarterly dividend of $2.33 per share, equivalent to a 2.8% yield, while CFO Richard McPhail sold approximately $2.1 million in stock. Analysts maintain a “Moderate Buy” consensus with an average price target of $375.54.

Wealthfront Advisers LLC purchased a new stake in The Home Depot, Inc. (NYSE:HD - Free Report) during the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund purchased 119,059 shares of the home improvement retailer's stock, valued at approximately $41,990,000.

Several other hedge funds also recently made changes to their positions in HD. BlackRock Inc. bought a new position in Home Depot in the second quarter valued at $28,771,247,000. State Street Corp grew its holdings in shares of Home Depot by 1.8% in the 4th quarter. State Street Corp now owns 46,925,342 shares of the home improvement retailer's stock valued at $16,147,010,000 after acquiring an additional 825,164 shares in the last quarter. Geode Capital Management LLC increased its position in shares of Home Depot by 1.5% in the fourth quarter. Geode Capital Management LLC now owns 23,756,142 shares of the home improvement retailer's stock valued at $8,151,344,000 after acquiring an additional 343,153 shares during the last quarter. Bank of America Corp DE raised its holdings in Home Depot by 1.6% during the first quarter. Bank of America Corp DE now owns 16,314,357 shares of the home improvement retailer's stock worth $5,365,629,000 after acquiring an additional 250,825 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. grew its stake in Home Depot by 7.8% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 15,471,132 shares of the home improvement retailer's stock valued at $5,323,620,000 after purchasing an additional 1,113,114 shares in the last quarter. 70.86% of the stock is owned by institutional investors.

Insiders Place Their Bets

In other news, CFO Richard V. Mcphail sold 5,989 shares of the company's stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $348.40, for a total transaction of $2,086,567.60. Following the transaction, the chief financial officer owned 48,104 shares in the company, valued at approximately $16,759,433.60. This represents a 11.07% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 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 reported quarterly revenue of $47.86 billion, up 5.7% year over year and above expectations, while adjusted diluted EPS of $4.92 exceeded the $4.73 consensus estimate. The results provided support for the stock, although they did not yet indicate a broad-based recovery in home improvement. Home Depot Q2 estimates and tariff refund
• Positive Sentiment: Management commentary indicated that smaller projects are driving growth as high mortgage rates and housing affordability challenges weigh on larger purchases. This suggests customers remain active, even if demand is shifting toward lower-cost jobs. Home Depot Q2 earnings call transcript
• Positive Sentiment: Home Depot’s 17-year dividend growth streak remains an attraction for income-oriented investors who can collect dividends while waiting for housing and renovation demand to improve. Home Depot dividend streak
• Neutral Sentiment: A $685 million tariff refund contributed to the quarterly outcome, raising concerns that part of the earnings strength may be one-time rather than driven by ongoing operating improvement. Home Depot tariff refund analysis
• Neutral Sentiment: The nationwide launch of three-hour delivery expands Home Depot’s e-commerce and fulfillment capabilities, but its effect on sales and margins remains unproven. Home Depot three-hour delivery
• Neutral Sentiment: Articles highlighting HD’s long-term multibagger returns and ownership by prominent investors may reinforce the company’s appeal, but they are not immediate earnings catalysts. Home Depot long-term returns
• Negative Sentiment: Home Depot’s CFO sold approximately $2.1 million of company stock. While insider selling can reflect personal financial planning, it may weigh modestly on sentiment. Home Depot CFO stock sale

Home Depot Trading Up 0.2%

Shares of Home Depot stock opened at $337.97 on Wednesday. The firm's 50 day moving average is $341.04 and its 200 day moving average is $339.54. The firm has a market capitalization of $337.00 billion, a PE ratio of 23.65, a price-to-earnings-growth ratio of 3.72 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 current ratio of 1.08, a quick ratio of 0.31 and a debt-to-equity ratio of 2.64.

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 for the quarter, beating the consensus estimate of $4.73 by $0.19. The company had revenue of $47.86 billion for the quarter, compared to the consensus estimate of $47.24 billion. Home Depot had a return on equity of 106.42% and a net margin of 8.41%.Home Depot's revenue for the quarter was up 5.7% on a year-over-year basis. During the same quarter last year, the business posted $4.68 EPS. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. Equities research analysts forecast that The Home Depot, Inc. will post 14.99 earnings per share for the current fiscal year.

Home Depot Announces Dividend

The business also recently announced 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 annualized dividend and a yield of 2.8%. Home Depot's dividend payout ratio is currently 65.22%.

Analyst Upgrades and Downgrades

HD has been the topic of a number of recent analyst reports. Piper Sandler lowered their target price on shares of Home Depot from $422.00 to $421.00 and set an "overweight" rating on the stock in a report on Wednesday, May 20th. UBS Group lowered their price target on Home Depot from $430.00 to $420.00 and set a "buy" rating on the stock in a research report on Wednesday, August 19th. Oppenheimer cut their price objective on Home Depot from $405.00 to $310.00 and set a "market perform" rating for the company in a research report on Monday, May 18th. Evercore reduced their price objective 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, The Goldman Sachs Group decreased their price objective on shares of Home Depot from $409.00 to $390.00 and set a "buy" rating on the stock in a report on Wednesday, May 20th. Eighteen equities research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Home Depot has an average rating of "Moderate Buy" and a consensus price target of $375.54.

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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