Westchester Capital Management Inc. Increases Position in The Home Depot, Inc. (NYSE:HD)

Key Points

• Westchester Capital Management Inc. increased its holdings in The Home Depot by 7.5%, owning 38,320 shares worth about $14 million.
• The Home Depot reported earnings of $3.56 per share for the latest quarter, slightly below the consensus estimate of $3.59, but its revenue increased by 9.4% year-over-year.
• The company declared a quarterly dividend of $2.30 per share with a dividend yield of 2.5%, highlighting consistent shareholder returns.

Westchester Capital Management Inc. boosted its stake in The Home Depot, Inc. (NYSE:HD - Free Report) by 7.5% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 38,320 shares of the home improvement retailer's stock after buying an additional 2,668 shares during the quarter. Home Depot makes up approximately 3.5% of Westchester Capital Management Inc.'s portfolio, making the stock its 15th largest holding. Westchester Capital Management Inc.'s holdings in Home Depot were worth $14,044,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Brighton Jones LLC lifted its stake in Home Depot by 36.5% in the 4th quarter. Brighton Jones LLC now owns 26,918 shares of the home improvement retailer's stock worth $10,471,000 after purchasing an additional 7,203 shares in the last quarter. Bank Pictet & Cie Europe AG lifted its stake in Home Depot by 4.9% in the 4th quarter. Bank Pictet & Cie Europe AG now owns 12,204 shares of the home improvement retailer's stock worth $4,747,000 after purchasing an additional 565 shares in the last quarter. Trexquant Investment LP purchased a new position in Home Depot in the 4th quarter worth approximately $6,671,000. Annis Gardner Whiting Capital Advisors LLC raised its position in shares of Home Depot by 2.9% during the 4th quarter. Annis Gardner Whiting Capital Advisors LLC now owns 2,613 shares of the home improvement retailer's stock valued at $1,017,000 after buying an additional 73 shares during the period. Finally, Yoffe Investment Management LLC purchased a new stake in shares of Home Depot during the 4th quarter valued at approximately $1,090,000. 70.86% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In related news, EVP Fahim Siddiqui sold 2,600 shares of the business's stock in a transaction on Thursday, May 22nd. The shares were sold at an average price of $367.14, for a total value of $954,564.00. Following the completion of the sale, the executive vice president directly owned 7,951 shares of the company's stock, valued at $2,919,130.14. The trade was a 24.64% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Teresa Wynn Roseborough sold 5,406 shares of the business's stock in a transaction on Wednesday, May 28th. The shares were sold at an average price of $369.28, for a total transaction of $1,996,327.68. Following the completion of the sale, the executive vice president directly owned 17,367 shares of the company's stock, valued at approximately $6,413,285.76. This trade represents a 23.74% decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.10% of the stock is owned by insiders.

Home Depot Stock Up 1.6%

Shares of Home Depot stock traded up $6.04 during trading on Friday, hitting $373.55. 3,006,523 shares of the stock were exchanged, compared to its average volume of 3,228,696. The stock has a market cap of $371.66 billion, a price-to-earnings ratio of 25.34, a price-to-earnings-growth ratio of 3.55 and a beta of 1.00. The firm's 50-day moving average price is $365.84 and its 200 day moving average price is $372.91. The Home Depot, Inc. has a 12-month low of $326.31 and a 12-month high of $439.37. The company has a debt-to-equity ratio of 5.95, a current ratio of 1.09 and a quick ratio of 0.28.

Home Depot (NYSE:HD - Get Free Report) last released its quarterly earnings data on Tuesday, May 20th. The home improvement retailer reported $3.56 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.59 by ($0.03). The firm had revenue of $39.86 billion for the quarter, compared to analysts' expectations of $39.24 billion. Home Depot had a return on equity of 242.51% and a net margin of 8.98%. Home Depot's revenue for the quarter was up 9.4% on a year-over-year basis. During the same period last year, the firm posted $3.63 earnings per share. As a group, analysts forecast that The Home Depot, Inc. will post 15.13 earnings per share for the current fiscal year.

Home Depot Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, June 18th. Investors of record on Thursday, June 5th were given a $2.30 dividend. The ex-dividend date of this dividend was Thursday, June 5th. This represents a $9.20 dividend on an annualized basis and a yield of 2.5%. Home Depot's payout ratio is 62.42%.

Analyst Upgrades and Downgrades

Several analysts have recently commented on HD shares. DA Davidson reduced their price target on shares of Home Depot from $470.00 to $450.00 in a research report on Tuesday, May 20th. Stifel Nicolaus raised shares of Home Depot from a "hold" rating to a "buy" rating and lifted their price target for the company from $405.00 to $425.00 in a research report on Wednesday, May 21st. Wells Fargo & Company set a $420.00 price target on shares of Home Depot and gave the company an "overweight" rating in a research report on Monday, June 30th. Telsey Advisory Group reaffirmed an "outperform" rating and set a $455.00 price target on shares of Home Depot in a research report on Monday, June 30th. Finally, Evercore ISI set a $400.00 price target on shares of Home Depot and gave the company an "outperform" rating in a research report on Thursday, May 22nd. Seven research analysts have rated the stock with a hold rating, twenty have issued a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat.com, Home Depot currently has an average rating of "Moderate Buy" and an average price target of $426.77.

Home Depot Company Profile

The Home Depot, Inc operates as a home improvement retailer in the United States and internationally. It sells various building materials, home improvement products, lawn and garden products, and décor products, as well as facilities maintenance, repair, and operations products. The company also offers installation services for flooring, water heaters, bath, garage doors, cabinets, cabinet makeovers, countertops, sheds, furnaces and central air systems, and windows.