Home Depot, one of the world’s foremost home improvement retailers, has a vast and diverse ownership structure, with various institutional investors holding significant stakes in the company. As we delve into the intriguing landscape of Home Depot’s largest shareholders, we’ll uncover the entities and individuals who have played a pivotal role in the success and growth of this retail giant.
From pension funds to investment management firms, these stakeholders are key players in shaping the company’s future and influencing its strategic direction.
Join us as we explore the prominent shareholders who hold a stake in Home Depot.
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The tables below show the entire individual and organizational owners of Home Depot as seen on Money,CNN.Com.
| Stockholder | Stake | Shares owned | Total value ($) | Shares bought / sold | Total change |
|---|---|---|---|---|---|
| The Vanguard Group, Inc. | 9.02% | 90,188,110 | 27,251,239,318 | -325,620 | -0.36% |
| BlackRock Fund Advisors | 4.63% | 46,338,720 | 14,001,707,635 | -4,704,179 | -9.22% |
| SSgA Funds Management, Inc. | 4.34% | 43,423,893 | 13,120,963,509 | -2,131,438 | -4.68% |
| Capital Research & Management Co…. | 3.91% | 39,145,594 | 11,828,232,683 | -378,726 | -0.96% |
| Geode Capital Management LLC | 1.94% | 19,381,828 | 5,856,413,148 | +246,828 | +1.29% |
| Wellington Management Co. LLP | 1.46% | 14,596,220 | 4,410,393,835 | -1,122,524 | -7.14% |
| Charles Schwab Investment Managem… | 1.30% | 13,024,316 | 3,935,427,323 | -167,645 | -1.27% |
| Capital Research & Management Co…. | 1.28% | 12,835,689 | 3,878,431,788 | +2,388,281 | +22.86% |
| Norges Bank Investment Management | 1.18% | 11,843,458 | 3,578,619,269 | +1,343,642 | +12.80% |
| Morgan Stanley Smith Barney LLC (… | 1.12% | 11,175,710 | 3,376,852,534 | +347,835 | +3.21% |
Top 10 Mutual Funds Holding Home Depot Inc
| Mutual fund | Stake | Shares owned | Total value ($) | Shares bought / sold | Total change |
|---|---|---|---|---|---|
| Vanguard Total Stock Market ETF | 3.12% | 31,159,344 | 9,415,107,383 | -164,486 | -0.53% |
| Vanguard 500 Index Fund | 2.42% | 24,163,601 | 7,301,273,678 | -225,037 | -0.92% |
| Fidelity 500 Index Fund | 1.16% | 11,601,271 | 3,505,440,045 | +92,221 | +0.80% |
| Government Pension Fund – Global … | 1.16% | 11,596,903 | 3,504,120,210 | +1,419,355 | +13.95% |
| SPDR S&P 500 ETF Trust | 1.11% | 11,145,038 | 3,367,584,682 | -63,986 | -0.57% |
| iShares Core S&P 500 ETF | 0.96% | 9,572,151 | 2,892,321,146 | +17,970 | +0.19% |
| Washington Mutual Investors Fund | 0.90% | 9,023,451 | 2,726,525,954 | +66,904 | +0.75% |
| American Balanced Fund | 0.89% | 8,882,689 | 2,683,993,308 | -110,000 | -1.22% |
| Vanguard Growth Index Fund | 0.87% | 8,684,305 | 2,624,049,599 | +121,566 | +1.42% |
| Vanguard Institutional Index Fund | 0.68% | 6,844,601 | 2,068,164,638 | -140,294 | -2.01% |
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What Does The Institutional Ownership Tell Us About Home Depot?
Numerous institutions evaluate their performance against an index that mirrors the local market, focusing their attention on companies included in major indices. Home Depot has institutional investors who hold a substantial portion of the company’s shares, suggesting a level of credibility in the investment community.
Nevertheless, it’s important to exercise caution when placing too much reliance on the perceived validation from institutional investors since they are not infallible. Even institutions can make errors in judgment.
When multiple institutions have significant stakes in stock, it can create a situation known as a ‘crowded trade,’ which carries the risk that if the trade goes awry, multiple parties may rush to sell their shares swiftly.
This risk is more pronounced in a company lacking a history of growth. While historical earnings and revenue for Home Depot can offer insights, it’s essential to remember that there’s always more to the complete story.
What More Does Ownership Tell Us About Home Depot?
Investors need to take note that institutions have acquired more than 50% of the company’s shares, giving them substantial collective influence. Hedge funds, on the other hand, hold a relatively small stake in Home Depot.
Our data reveals that The Vanguard Group, Inc. is the largest shareholder, owning 9.4% of the outstanding shares, while the second and third largest shareholders hold approximately 7.1% and 5.4% of the total stock, respectively.
A closer examination of our ownership data reveals that the top 25 shareholders collectively possess less than 50% of the total ownership, indicating a significant presence of smaller shareholders and the absence of any majority shareholder.
While assessing institutional ownership can provide valuable insights for your research, it’s also advisable to consider analyst recommendations to gain a deeper understanding of the stock’s anticipated performance. Home Depot has garnered attention from numerous analysts, making it worthwhile to explore their forecasts as well.
Insider Ownership Of Home Depot
Defining who qualifies as a company insider can be a subjective matter, subject to variation depending on the jurisdiction. Our data primarily covers individual insiders, and at the very least, this includes board members. While company management handles day-to-day operations, it’s important to note that even if the CEO is a board member, they ultimately answer to the board.
Generally, insider ownership is seen in a positive light as it can indicate alignment between the board and other shareholders. However, in certain cases, an excessive concentration of power within this group can raise concerns.
Our data shows that insiders at The Home Depot, Inc. collectively own less than 1% of the company. Given the company’s significant size, it’s not surprising that insider ownership is relatively low. However, it’s worth mentioning that the board members together hold shares valued at $250 million (at current prices). Recent buying and selling activities should also be taken into consideration when making an overall assessment.
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Ownership by the General Public
Individual investors, typically representing the general public, collectively hold a 28% stake in Home Depot. While this is a substantial ownership share, it might not wield sufficient influence to drive changes in company policies unless it aligns with the preferences of other major shareholders.
What to Consider Next:
It’s essential to consider the various groups that hold shares in a company, but a comprehensive understanding of Home Depot requires an assessment of multiple other factors. For instance, we’ve identified one warning sign related to Home Depot that investors should be mindful of.
For those interested in analyst projections regarding future growth, we have a valuable free report on analyst forecasts that shouldn’t be overlooked.
Please note that the figures in this article are calculated based on data from the past twelve months, covering the period concluding on the last day of the month specified in the financial statement. These figures may not align with the full-year annual report data.
Home Depot possesses a complex ownership arrangement, comprising a blend of institutional investors, individual shareholders, and board members.
The involvement of institutional investors highlights the company’s trustworthiness, while the substantial ownership by the general public indicates its broad popularity.
The collective participation of board members underscores their commitment. This intricate ownership structure defines Home Depot’s crucial position in the home improvement sector.
References
- https://money.cnn.com – Home Depot Inc
- https://simplywall.st – The Home Depot, Inc. (NYSE: HD) is largely controlled by institutional shareholders who own 72% of the company
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