Smead Capital Management Inc. Reduces Position in The Home Depot, Inc. $HD

Smead Capital Management Inc. decreased its holdings in The Home Depot, Inc. (NYSE:HD) by 7.1% in the third quarter, Holdings Channel.com reports. The institutional investor owned 377,406 shares of the home improvement retailer’s stock after selling 28,867 shares during the period. Home Depot makes up 3.0% of Smead Capital Management Inc.’s portfolio, making the stock its 18th largest holding. Smead Capital Management Inc.’s holdings in Home Depot were worth $152,921,000 as of its most recent SEC filing.

Other institutional investors have also recently made changes to their positions in the company. Financially Speaking Inc purchased a new stake in Home Depot in the third quarter worth approximately $31,000. Sagard Holdings Management Inc. bought a new position in shares of Home Depot during the 2nd quarter valued at $29,000. LFA Lugano Financial Advisors SA bought a new position in shares of Home Depot during the 2nd quarter valued at $32,000. Dougherty Wealth Advisers LLC purchased a new position in shares of Home Depot in the 3rd quarter worth $38,000. Finally, AXS Investments LLC bought a new stake in shares of Home Depot in the third quarter worth $38,000. Hedge funds and other institutional investors own 70.86% of the company’s stock.

Home Depot Stock Up 1.0%

Shares of HD opened at $382.38 on Friday. The business’s 50 day moving average is $369.26 and its 200 day moving average is $380.29. The company has a current ratio of 1.05, a quick ratio of 0.29 and a debt-to-equity ratio of 3.82. The Home Depot, Inc. has a 12-month low of $326.31 and a 12-month high of $426.75. The company has a market capitalization of $380.66 billion, a PE ratio of 26.07, a price-to-earnings-growth ratio of 13.53 and a beta of 1.08.

Home Depot (NYSE:HD) last announced its quarterly earnings data on Tuesday, November 18th. The home improvement retailer reported $3.74 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $3.83 by ($0.09). The company had revenue of $41.35 billion for the quarter, compared to analysts’ expectations of $41.06 billion. Home Depot had a net margin of 8.77% and a return on equity of 160.74%. The company’s quarterly revenue was up 2.8% compared to the same quarter last year. During the same period last year, the business earned $3.78 earnings per share. Research analysts expect that The Home Depot, Inc. will post 15.13 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, EVP Angie Brown sold 1,946 shares of the firm’s stock in a transaction on Friday, December 12th. The shares were sold at an average price of $357.63, for a total transaction of $695,947.98. Following the completion of the transaction, the executive vice president directly owned 3,941 shares of the company’s stock, valued at approximately $1,409,419.83. This trade represents a 33.06% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Ann Marie Campbell sold 145 shares of the business’s stock in a transaction on Thursday, December 11th. The stock was sold at an average price of $358.26, for a total transaction of $51,947.70. Following the completion of the sale, the executive vice president owned 12,320 shares in the company, valued at approximately $4,413,763.20. The trade was a 1.16% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 4,963 shares of company stock worth $1,748,845. 0.10% of the stock is owned by insiders.

Key Stories Impacting Home Depot

Here are the key news stories impacting Home Depot this week:

• Positive Sentiment: Telsey Advisory Group reiterated an “Outperform” rating on HD, which supports investor confidence in the name. Telsey Reiterates Outperform
• Positive Sentiment: An earnings‑preview piece and a Yahoo Model suggest Home Depot could post an upside surprise at its upcoming quarter, giving some investors reasons to buy into the run‑up to results. Is Home Depot a ‘Buy’ Ahead of Earnings?
• Positive Sentiment: Marketing/seasonal activations (e.g., a “spring countdown” campaign) and pro‑business initiatives continue to support demand and brand engagement heading into spring selling season. TipRanks: Spring Countdown
• Neutral Sentiment: Analyst writeups (Zacks, Seeking Alpha) highlight Home Depot’s expanding Pro ecosystem, AI tools and specialty distribution as strategic advantages versus Lowe’s, but many analysts still view shares as fairly valued—useful context but no immediate catalyst. Zacks: HD vs LOW
• Neutral Sentiment: Personnel moves: a Home Depot executive surfaced in CFO hiring headlines (Yeti), signaling industry talent movement but limited direct impact on HD’s near‑term results. CFOs On the Move
• Neutral Sentiment: Macro/market context pieces note Home Depot’s upcoming earnings as a read on U.S. consumer and the housing market; these stories keep the name in focus but don’t change fundamentals. Nvidia Earnings, PPI, What to Watch
• Negative Sentiment: RBC warned HD’s fiscal Q4 is unlikely to be a “significant catalyst” and lowered its price target, moving to a more cautious stance—this analyst caution is pressuring upside expectations into results. RBC: Q4 Not a Catalyst StreetInsider: PT Lowered
• Negative Sentiment: Operational caution: reports say Home Depot tightened bonus payouts amid a housing slowdown, signaling management is bracing for softer demand—this is a direct negative on near‑term margin/comp assumptions. MSN: Stricter Bonuses

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on HD shares. UBS Group set a $430.00 target price on Home Depot in a report on Wednesday, December 10th. Morgan Stanley increased their price target on shares of Home Depot from $395.00 to $412.00 and gave the stock an “overweight” rating in a research report on Thursday, January 15th. Argus dropped their price target on shares of Home Depot from $450.00 to $425.00 and set a “buy” rating on the stock in a research note on Thursday, November 20th. Stifel Nicolaus decreased their target price on Home Depot from $370.00 to $350.00 and set a “hold” rating on the stock in a report on Monday, December 1st. Finally, The Goldman Sachs Group reiterated a “buy” rating and set a $413.00 target price on shares of Home Depot in a research report on Wednesday, December 10th. Twenty-one analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $408.27.

About Home Depot

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.