Andra AP fonden has reduced its holdings in The Home Depot, Inc. (NYSE: HD) by 13.7% during the third quarter of 2023, according to its latest Form 13F filing with the U.S. Securities and Exchange Commission (SEC). The fund now owns 67,400 shares of the home improvement retailer, following the sale of 10,700 shares during this period. These holdings were valued at approximately $27.31 million at the end of the reporting period.
Several other institutional investors have also adjusted their positions in Home Depot. For instance, TIAA Trust National Association increased its stake by 23.7%, acquiring an additional 23,089 shares for a total of 120,475 shares, valued at around $48.82 million. Similarly, Whalerock Point Partners LLC raised its holdings by 1.8%, now owning 18,797 shares worth $7.62 million after adding 326 shares.
Other notable increases in stakes were made by IAG Wealth Partners LLC, which boosted its position by 3.1%, and Mill Creek Capital Advisors LLC, which grew its holdings by 13.0%. The latter now holds 4,507 shares valued at $1.83 million. In addition, Lansing Street Advisors raised its stake by 2.4%, owning 2,928 shares valued at $1.19 million. Overall, institutional investors and hedge funds now control 70.86% of Home Depot’s stock.
Insider Trading Activity
In related developments, Teresa Wynn Roseborough, the Executive Vice President of Home Depot, sold 2,872 shares on December 26, 2023, at an average price of $348.52, totaling approximately $1 million. After this transaction, she holds 13,196 shares valued at about $4.60 million, reflecting a 17.87% decrease in her ownership.
Similarly, Angie Brown, another Executive Vice President, sold 1,946 shares on December 12, 2023, at an average price of $357.63, amounting to around $696,000. Following this sale, Brown’s holdings dropped by 33.06% to 3,941 shares, valued at approximately $1.41 million. In total, insiders sold 4,963 shares of company stock valued at $1.75 million over the last quarter, representing 0.10% of the company’s stock owned by corporate insiders.
Market Overview and Financial Performance
On the trading front, Home Depot shares opened at $375.02 on Friday. The company has experienced a 52-week low of $326.31 and a high of $426.75, with a market capitalization of $373.34 billion. The firm’s price-to-earnings (P/E) ratio stands at 26.35, while the price-to-earnings-growth (PEG) ratio is 13.49.
Home Depot last reported its quarterly earnings on February 24, 2024, announcing earnings per share (EPS) of $2.72, exceeding analysts’ expectations of $2.52 by $0.20. Despite this success, the company’s revenue of $38.20 billion marked a 3.8% decline compared to the previous year. Analysts forecast the company will achieve an EPS of $15.13 for the current fiscal year, with guidance for FY 2026 set between $14.230 and $14.799.
In an encouraging update for shareholders, Home Depot announced an increase in its quarterly dividend to $2.33 per share, set to be distributed on March 26, 2024, to those on record by March 12, 2024. This marks an increase from the previous quarterly dividend of $2.30, resulting in an annualized payout of $9.32 and a yield of 2.5%.
The overall sentiment regarding Home Depot remains cautiously optimistic. Analysts from various firms have updated their price targets, with Jefferies Financial Group raising its target from $424.00 to $454.00, maintaining a “buy” rating. Conversely, Oppenheimer has lowered its target from $420.00 to $405.00, while maintaining a “market perform” rating.
As the retail landscape continues to evolve, Home Depot’s focus on maintaining strong relationships with professional and commercial customers may provide a buffer against fluctuating consumer demands. The company remains a significant player in the home improvement sector, navigating challenges while leveraging its established market position.
