Longfellow Investment Management Co. LLC bought a new stake in shares of The Home Depot, Inc. (NYSE:HD – Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund bought 7,882 shares of the home improvement retailer’s stock, valued at approximately $2,780,000.
A number of other hedge funds and other institutional investors have also added to or reduced their stakes in HD. Wealthspan Partners LLC bought a new position in Home Depot in the second quarter worth approximately $572,000. Chase Investment Counsel Corp purchased a new position in shares of Home Depot during the 2nd quarter worth $488,000. RW Investment Management LLC bought a new stake in shares of Home Depot during the 2nd quarter valued at $325,000. N.E.W. Advisory Services LLC bought a new stake in shares of Home Depot during the 2nd quarter valued at $332,000. Finally, HBK Sorce Advisory LLC bought a new stake in shares of Home Depot during the 2nd quarter valued at $5,317,000. 70.86% of the stock is owned by hedge funds and other institutional investors.
Key Stories Impacting Home Depot
Here are the key news stories impacting Home Depot this week:
- Positive Sentiment: Home Depot’s latest quarter showed solid execution: earnings and revenue exceeded consensus estimates, while sales increased year over year. Bank of America characterized the results as resilient despite a difficult housing backdrop. Home Depot Q2 results analysis
- Positive Sentiment: The board declared a quarterly dividend of $2.33 per share, payable September 17 to shareholders of record September 3. The annualized payout implies a yield of approximately 2.8%, supporting the stock’s income appeal. Home Depot declares quarterly dividend
- Positive Sentiment: DA Davidson, Argus and Guggenheim reiterated or assigned “Buy” ratings, indicating continued confidence in Home Depot’s long-term positioning. The company is also expanding nationwide express delivery to make smaller projects more convenient for cautious consumers. DA Davidson buy rating Home Depot expands express delivery
- Neutral Sentiment: Royal Bank of Canada lowered its price target to $342, while KeyCorp maintained a Sector Weight rating. The mixed recommendations suggest limited near-term upside despite the earnings beat. RBC lowers Home Depot price target
- Neutral Sentiment: Home Depot expanded executive responsibilities and awarded restricted stock, changes intended to support leadership continuity but with no immediate earnings impact. Home Depot executive changes
- Negative Sentiment: Reports highlight margin pressure and an uphill sales environment as customers delay or reduce spending on major renovations. This could constrain comparable sales and profitability even after the recent quarterly beat. Home Depot margin pressure Home Depot customer spending concerns
- Negative Sentiment: CFO Richard McPhail sold 5,989 shares worth approximately $2.1 million, reducing his position by 11.1%. While insider sales do not necessarily signal deteriorating fundamentals, the transaction may weigh modestly on sentiment. Home Depot CFO stock sale
Home Depot Stock Performance
Home Depot (NYSE:HD – Get Free Report) last released its earnings results on Tuesday, August 18th. The home improvement retailer reported $4.92 earnings per share for the quarter, beating analysts’ consensus estimates of $4.73 by $0.19. The company had revenue of $47.86 billion for the quarter, compared to analysts’ expectations of $47.24 billion. Home Depot had a net margin of 8.41% and a return on equity of 106.42%. Home Depot’s revenue for the quarter was up 5.7% on a year-over-year basis. During the same quarter in the previous year, the company earned $4.68 EPS. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. Equities analysts anticipate that The Home Depot, Inc. will post 14.99 earnings per share for the current fiscal year.
Home Depot Announces Dividend
The firm 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 $2.33 dividend. This represents a $9.32 annualized dividend and a dividend yield of 2.8%. The ex-dividend date is Thursday, September 3rd. Home Depot’s payout ratio is presently 65.22%.
Insider Activity at Home Depot
In other news, CFO Richard V. Mcphail sold 5,989 shares of the company’s stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $348.40, for a total value of $2,086,567.60. Following the completion of the transaction, the chief financial officer owned 48,104 shares of the company’s stock, valued at $16,759,433.60. This represents a 11.07% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. 0.08% of the stock is owned by insiders.
Wall Street Analyst Weigh In
A number of equities analysts recently commented on HD shares. Argus reaffirmed a “buy” rating and issued a $400.00 target price on shares of Home Depot in a report on Wednesday, August 19th. UBS Group cut their price target on Home Depot from $430.00 to $420.00 and set a “buy” rating for the company in a report on Wednesday. Wolfe Research lowered Home Depot from an “outperform” rating to a “peer perform” rating in a report on Tuesday, June 23rd. HSBC reduced their price target on Home Depot from $392.00 to $310.00 and set a “hold” rating for the company in a research report on Wednesday, May 20th. Finally, Guggenheim reaffirmed a “buy” rating and issued a $425.00 price objective on shares of Home Depot in a research note on Wednesday, August 19th. Eighteen 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.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $375.54.
Read Our Latest Research Report on HD
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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