Flavin Financial Reduces Home Depot Stake as Hedge Fund Activity Rises

Flavin Financial Services Inc. has reduced its stake in Home Depot, Inc. (NYSE: HD) by 5.4% during the second quarter of 2023, according to a recent 13F filing with the Securities and Exchange Commission (SEC). The firm now holds 6,801 shares of the home improvement retailer after selling 389 shares during the period. Home Depot represents 2.4% of Flavin Financial’s investment portfolio, making it the fund’s 14th largest holding. As of the latest filing, the value of Flavin’s holdings in Home Depot stands at approximately $2,494,000.

The move comes amid increased activity from various hedge funds regarding Home Depot’s stock. Notably, Vanguard Group Inc. enhanced its position in the company by 0.8% in the first quarter, now owning 96,484,199 shares valued at $35.36 billion, following the purchase of an additional 720,447 shares. Similarly, Asset Planning Services Inc. LA ADV significantly increased its stake by 99,400.7%, bringing its total to 18,975,772 shares worth approximately $6.95 billion.

Charles Schwab Investment Management Inc. also expanded its holdings, acquiring 891,326 shares, while Price T Rowe Associates Inc. raised its investment by 19.3% with an additional 1,494,261 shares. UBS AM increased its position by 5.6%, acquiring 477,192 shares in the last quarter. Collectively, hedge funds and institutional investors hold 70.86% of Home Depot’s stock.

Home Depot’s share price opened at $391.79 on the New York Stock Exchange, reflecting a 1.1% increase. The company has a market capitalization of $389.98 billion and a price-to-earnings ratio of 26.62. Its fifty-two week range shows a low of $326.31 and a high of $439.37.

In financial news, Home Depot announced a quarterly dividend of $2.30 per share, which was paid on September 18, 2023. This dividend, representing an annualized payout of $9.20, provides a yield of 2.3% based on current share prices. The company’s payout ratio stands at 62.50%.

Recent insider activity at Home Depot reveals that CFO Richard V. Mcphail sold 3,369 shares on August 20, 2023, for a total of approximately $1.36 million. Following this transaction, he retains 45,455 shares, valued at about $18.35 million, reflecting a 6.90% decrease in ownership. Additionally, EVP Angie Brown sold 1,000 shares on the same day for around $404,070, marking a 20.67% decrease in her holdings.

Analysts have recently revised their price targets for Home Depot. Stifel Nicolaus raised its price objective from $425.00 to $432.00 and maintained a “buy” rating. Conversely, JPMorgan Chase & Co. lowered its target from $460.00 to $452.00, while maintaining an “overweight” rating. Other firms, like Morgan Stanley, adjusted their targets upward as well, with a new price objective of $430.00.

Currently, one investment analyst rates Home Depot as a Strong Buy, while nineteen others have issued Buy ratings, and six analysts have designated a Hold rating. According to MarketBeat, the consensus rating stands at “Moderate Buy,” with a price target of approximately $435.42.

The Home Depot, Inc. operates as a leading retailer in the home improvement sector, providing a wide array of building materials, home products, and installation services both in the United States and internationally. As the company navigates through changing market dynamics, its ongoing performance remains a focal point for investors and analysts alike.