Burney Co. has decreased its investment in The Home Depot, Inc. (NYSE: HD) by 12.8% during the second quarter of 2024, according to the company’s latest filing with the U.S. Securities and Exchange Commission (SEC). Following the sale of 4,081 shares, Burney Co. now holds 27,786 shares of the home improvement retailer, valued at approximately $10.19 million at the close of the quarter.
This adjustment comes amid a broader trend as other institutional investors also re-evaluate their positions in Home Depot. For instance, Nuveen LLC made a significant entry into the company during the first quarter, acquiring shares worth around $2.08 billion. Additionally, Valeo Financial Advisors LLC dramatically increased its holdings by an astonishing 16,746.9%, now owning 4,537,880 shares valued at nearly $1.66 billion after purchasing an extra 4,510,944 shares in the last quarter.
In the same vein, Price T Rowe Associates Inc. raised its stake by 19.3% and now holds 9,253,292 shares worth approximately $3.39 billion. Other notable actions include Kingstone Capital Partners Texas LLC entering the market with a new position valued at around $418.49 million, and Charles Schwab Investment Management Inc. increasing its stake by 6.6%, now owning 14,415,278 shares valued at about $5.28 billion. Collectively, hedge funds and institutional investors control approximately 70.86% of Home Depot’s stock.
Stock Performance and Market Overview
As of Monday, shares of The Home Depot opened at $379.75. The stock has shown volatility, with a 50-day moving average of $400.57 and a 200-day moving average of $380.88. Over the past year, the stock reached a low of $326.31 and a high of $439.37, contributing to a market capitalization of $378 billion. The company currently has a price-to-earnings (P/E) ratio of 25.80 and a beta of 1.00, indicating a level of volatility in line with the broader market.
In terms of liquidity, Home Depot has a quick ratio of 0.34 and a current ratio of 1.15, reflecting its ability to meet short-term obligations. The company’s debt-to-equity ratio stands at 4.31, suggesting a high level of leverage.
Dividend Declaration and Analyst Ratings
Recently, Home Depot declared a quarterly dividend of $2.30 per share, which was distributed on September 18, 2024. Shareholders on record as of September 4, 2024 benefited from this payout, which translates to an annualized dividend of $9.20 and a yield of 2.4%. The company’s dividend payout ratio is currently 62.50%.
Analysts have varying opinions on Home Depot’s stock performance. Notably, JPMorgan Chase & Co. revised its price target downward from $460.00 to $452.00, maintaining an “overweight” rating. In contrast, DA Davidson reiterated a “buy” rating with a price target of $450.00. Other firms like Stifel Nicolaus and Robert W. Baird also increased their price objectives, reflecting optimism about the company’s future performance.
Currently, one analyst has assigned a Strong Buy rating to Home Depot, while eighteen others have issued a Buy rating, and six have opted for a Hold rating. According to MarketBeat.com, the consensus rating is a “Moderate Buy” with an average price target of $434.35.
Insider trading activity has also been notable, with Angie Brown, Executive Vice President, selling 1,000 shares on August 20, 2024, at an average price of $404.07, totaling $404,070. After this transaction, Brown holds 3,837 shares valued at $1.55 million. Additionally, Richard V. Mcphail, Chief Financial Officer, sold 3,369 shares on the same day for approximately $1.36 million, reducing his ownership by 6.90%.
Over the past three months, insiders sold a total of 48,835 shares worth around $19.62 million, indicating a small insider ownership of only 0.10%.
The Home Depot operates as a home improvement retailer both in the United States and internationally, offering various building materials, home improvement products, and installation services. The company’s strategic actions and market performance are closely watched as they may signal broader industry trends.
