First Merchants Corp has reduced its holdings in shares of The Home Depot, Inc. (NYSE: HD) by 5.6% during the third quarter of 2024. According to the company’s recent Form 13F filing with the Securities and Exchange Commission (SEC), First Merchants now owns 24,997 shares after selling 1,469 shares during this period. The value of its remaining stake amounts to approximately $10.1 million.
This move follows a trend among institutional investors adjusting their positions in Home Depot. Notably, Norges Bank made a significant entry into Home Depot in the second quarter, acquiring a stake valued at $4.89 billion. Meanwhile, Laurel Wealth Advisors LLC dramatically increased its stake by 36,207.5%, now holding 10,076,783 shares worth about $3.69 billion. Similarly, Valeo Financial Advisors LLC expanded its position by 16,746.9%, ending the quarter with 4,537,880 shares valued at around $1.66 billion.
The Vanguard Group also increased its stake by 1.5%, now owning 97,978,814 shares, representing a total value of $35.92 billion. Institutional investors collectively hold 70.86% of the company’s stock, indicating strong interest in Home Depot among large financial entities.
Market Sentiment and Analyst Updates
Recent market developments have contributed to a mixed sentiment surrounding Home Depot. Positive investor sentiment is driven by a rotation towards cash-rich retailers and a resurgence in renovation activity, which is expected to bolster sales for the home improvement giant. Additionally, local enforcement actions, such as a recent raid in Phoenix, have alleviated concerns over potential labor disruptions.
Analysts have been adjusting their price targets for Home Depot amid recent performance fluctuations. Stifel Nicolaus lowered its price objective from $370.00 to $350.00, while Wells Fargo & Company revised its target from $400.00 to $395.00. Conversely, BNP Paribas Exane raised its target from $353.00 to $355.00, affirming a neutral outlook.
Despite these adjustments, Home Depot’s stock has shown resilience. On December 10, 2024, shares opened at $349.09, with a market capitalization of $347.53 billion. The stock has been trading within a 52-week range of $326.31 to $426.75.
Recent Financial Performance and Future Projections
Home Depot recently reported its earnings for the third quarter of 2024, revealing an earnings per share (EPS) of $3.74, which fell short of analysts’ expectations of $3.83. The company’s revenue reached $41.35 billion, surpassing the consensus estimate of $41.06 billion, marking a 2.8% increase year-over-year.
Looking ahead, Home Depot has set its fiscal year 2025 EPS guidance at $14.478. Analysts forecast an average EPS of $15.13 for the current fiscal year, reflecting cautious optimism amidst prevailing economic challenges such as rising healthcare costs and shifting consumer spending patterns.
The company also announced a quarterly dividend of $2.30 per share, paid on December 18, 2024, following a record date of December 4, 2024. This dividend represents an annual yield of 2.6% and showcases the firm’s commitment to returning value to shareholders.
In related insider activity, Ann Marie Campbell, Executive Vice President, sold 145 shares for approximately $51,948, while Teresa Wynn Roseborough, another executive vice president, sold 2,872 shares valued at around $1 million.
Overall, Home Depot remains a significant player in the home improvement sector, continuously adapting to market dynamics while navigating potential challenges ahead.
