Wright Investors Service Inc. has significantly reduced its stake in The Home Depot, Inc. (NYSE: HD), decreasing its holdings by 46.4% during the third quarter of 2023. According to the firm’s latest 13F filing with the Securities and Exchange Commission, it now owns 7,193 shares of the home improvement retailer, following the sale of 6,235 shares in the quarter. The remaining shares are valued at approximately $2.9 million.
Other institutional investors have also adjusted their stakes in Home Depot. For instance, Centerpoint Advisory Group increased its holdings by 0.8%, now possessing 3,163 shares worth $1.16 million after acquiring an additional 26 shares. In a similar move, Disciplined Investors L.L.C. raised its position by 2.3%, bringing its total to 1,178 shares valued at $432,000.
The broader investment landscape for Home Depot shows that institutional investors collectively own 70.86% of the company’s stock. The ongoing adjustments by hedge funds and other entities indicate a dynamic investment environment around the retailer.
Analysts Respond to Home Depot’s Market Position
In conjunction with these changes, several analysts have shared their insights on Home Depot’s stock performance. The Goldman Sachs Group reaffirmed a “buy” rating on December 10, 2023, with a price target of $413.00. Meanwhile, Wells Fargo & Company adjusted its price target from $400.00 to $395.00, maintaining an “overweight” rating.
Additionally, UBS Group set a price objective of $430.00, while Wolfe Research slightly raised its target from $414.00 to $415.00, giving it an “outperform” rating. Oppenheimer also revised its target, lowering it from $420.00 to $405.00 with a “market perform” rating. Overall, 21 analysts rated the stock as a Buy, with an average rating of “Moderate Buy” and a consensus price target of $402.67.
Home Depot’s Financial Performance and Future Projections
On November 18, 2023, The Home Depot reported its earnings, revealing an earnings per share (EPS) of $3.74, which fell short of analysts’ expectations of $3.83. The company’s revenue for the quarter reached $41.35 billion, surpassing the forecast of $41.06 billion. The year-over-year revenue growth was 2.8%, showcasing resilience despite economic challenges.
In terms of future projections, analysts anticipate that Home Depot will achieve an EPS of $15.13 for the current fiscal year, with guidance set for FY 2025 at $14.478.
Home Depot continues to maintain a strong market presence, with a market capitalization of $377.22 billion. The company’s debt-to-equity ratio stands at 3.82, with a current ratio of 1.05 and a quick ratio of 0.29, indicating a stable financial position.
In addition to its financial performance, Home Depot recently announced a quarterly dividend of $2.30, paid on December 18, 2023, to shareholders who were on record as of December 4, 2023. This dividend represents an annualized yield of 2.4% and a dividend payout ratio of 62.71%.
Insider trading activity has also been noteworthy, with Executive Vice President Ann Marie Campbell selling 145 shares on December 11, 2023, for a total of $51,947.70. Following the sale, she retains 12,320 shares valued at about $4.41 million. EVP Angie Brown also sold 1,946 shares for approximately $695,948, reducing her position by 33.06%.
Founded in 1978 and headquartered in Atlanta, Georgia, Home Depot is recognized as a leading home improvement retailer. The company operates large-format stores and a comprehensive online platform, providing a wide array of products and services for both do-it-yourself consumers and professional contractors. As it moves into 2024, Home Depot’s strategies and market performance will continue to attract attention from investors and analysts alike.
