Institutional Investors Adjust Home Depot Stakes as Analysts Weigh Sales Outlook
Recent filings reveal mixed institutional trading in The Home Depot, Inc. (HD), while analysts maintain an average Moderate Buy rating following steady second-quarter results.
Recent regulatory disclosures show major institutional investors adjusting their positions in The Home Depot, Inc. The Maryland State Retirement & Pension System established a new position in the company during the third quarter, purchasing 61,261 shares valued at approximately $17,428,000. Other institutions also added to their holdings, including Jefferies Financial Group Inc., which expanded its stake by 245.6% to reach 70,348 shares worth $20,013,000. Institutional investors and hedge funds collectively hold 70.86% of the retailer's outstanding stock.
Conversely, some prominent asset managers opted to trim their exposure during the same period. Fifth Third Bancorp reduced its investment by 10.2%, divesting 142,057 shares while holding onto 1,249,075 shares valued at $355,349,000. In addition, Lockheed Martin Investment Management Co. lowered its position by 32.4%, selling 13,630 shares to retain 28,460 shares worth $8,097,000.
Wall Street analysts have maintained a generally positive perspective on the retailer. According to MarketBeat, the consensus rating among analysts stands at Moderate Buy, with an average price target of $375.90. JPMorgan Chase & Co. recently boosted its price target from $396.00 to $400.00 with an overweight rating. Sanford C. Bernstein also lifted its price objective from $344.00 to $357.00 while maintaining a market perform rating, and Bank of America Securities reiterated a buy rating.
The institutional activity follows Home Depot's second-quarter fiscal 2026 performance, where comparable sales rose 1.7% and total revenue reached $47.86 billion, marking a 5.7% increase year over year. Second-quarter earnings stood at $4.92 per share, surpassing consensus expectations of $4.73 per share. Growth was supported by demand from professional customers and an 11% increase in digital platform sales, which offset a 1% decline in comparable transactions.
Management has maintained its full-year fiscal 2026 guidance for flat to 2% growth in comparable sales, alongside an earnings per share forecast between 14.690 and 15.278. While professional services and smaller maintenance projects have sustained momentum, industry observers point to housing affordability pressures and subdued turnover as continuing challenges for larger discretionary renovations.