Thornburg Investment Management Inc. has increased its investment in The Home Depot, Inc. (NYSE: HD) by 0.6% during the second quarter of 2023. This adjustment, confirmed through a recent filing with the Securities and Exchange Commission (SEC), brings Thornburg’s total ownership to 512,523 shares after acquiring an additional 3,149 shares. The investment firm now holds approximately $187,911,000 in Home Depot stock, representing around 2.4% of its total portfolio and making it the ninth largest position for Thornburg.
Several other institutional investors have also entered or adjusted their positions in Home Depot recently. For instance, Legend Financial Advisors Inc. acquired a new stake worth about $28,000 during the same quarter. Other notable investments include LFA Lugano Financial Advisors SA, with a stake valued at approximately $32,000, and Legacy Investment Solutions LLC, which invested around $35,000. Overall, hedge funds and institutional investors currently own about 70.86% of Home Depot’s stock.
Insider Transactions and Company Performance
In related developments, Home Depot’s Executive Vice President, William D. Bastek, recently sold 2,303 shares of the company’s stock on September 12, 2023. The transaction was completed at an average price of $423.12 per share, totaling $974,445.36. Following this sale, Bastek retains ownership of 24,235 shares, valued at approximately $10,254,313.20, marking an 8.68% reduction in his stake. Company insiders collectively hold about 0.10% of Home Depot’s stock.
Home Depot also reported its earnings on November 18, 2023, revealing earnings per share (EPS) of $3.74 for the quarter. This figure fell short of analysts’ expectations, which had estimated an EPS of $3.83. The company’s revenue for the quarter reached $41.35 billion, surpassing projected figures of $41.06 billion. Home Depot’s return on equity stood at an impressive 193.99%, with a net margin of 8.86%. The revenue reflected a year-over-year increase of 2.8%. Looking ahead, Home Depot has set its fiscal year 2025 guidance at an EPS of 14.478.
Dividend Announcement and Analyst Ratings
Home Depot has announced a quarterly dividend of $2.30 per share, scheduled for payment on December 18, 2023. Stockholders of record as of December 4 will be eligible for this dividend, which translates to an annualized distribution of $9.20 and a yield of 2.6%. The company’s current dividend payout ratio stands at 62.71%, indicating a balanced approach to returning value to shareholders.
Recent analyses from various financial institutions have set new price targets for Home Depot’s stock. Sanford C. Bernstein reaffirmed a “market perform” rating with a price target of $362.00. Weiss Ratings maintained a “buy (b-)” rating, while Telsey Advisory Group adjusted its target from $455.00 to $430.00, also recommending an “outperform” rating. Oppenheimer increased its price objective from $400.00 to $420.00, and Argus revised its target from $450.00 to $425.00, maintaining a “buy” rating. Currently, 22 analysts have rated Home Depot as a buy, 10 have issued hold ratings, and one has given a sell rating, leading to an average rating of “Moderate Buy” and an average target price of $404.60, according to MarketBeat.
The Home Depot, Inc. operates as a prominent home improvement retailer, offering a variety of building materials, home improvement products, and services across the United States and internationally. Its extensive product range includes lawn and garden supplies, decor items, and installation services for various home improvements.
