5 Large-Cap Stocks Hedge Funds Are Dumping

2. The Home Depot, Inc. (NYSE:HD)

Number of Hedge Fund Holders: 62

Number of Hedge Funds That Sold: 27

27 hedge funds dissolved their positions in The Home Depot, Inc. (NYSE:HD) at the end of Q4 2022. The stock was a part of 62 investors’ portfolios. The total stakes of these hedge funds amounted to $4.84 billion, down from $5.61 billion in Q3 2022 with 89 positions. The hedge fund sentiment for the stock is negative.

On February 22, Truist lowered its price target on The Home Depot, Inc. (NYSE:HD) to $352 from $382 and reiterated a Buy rating on the shares.

As of December 31, Diamond Hill Capital is the largest shareholder in The Home Depot, Inc. (NYSE:HD) and owns over 1 million shares of the company.

Here is what Matrix Asset Advisors had to say about The Home Depot, Inc. (NYSE:HD) in its third-quarter 2022 investor letter.

“During the quarter, we re-established a position in The Home Depot, Inc. (NYSE:HD) sold earlier this year, after the shares declined sharply on big picture concerns about a softer housing market and lower consumer spending. We believe that HD is a very well-managed company, positioned to continue showing good profits even as the economy decelerates. The products it carries in inventory are in year-round demand from contractors and homeowners wanting to maintain and improve their homes. The company has historically been shareholder friendly, repurchasing shares and increasing the dividend, most recently by 15% earlier this year. On September 30, HD’s current dividend yield was 2.8%.”