Fundsmith 13F: Cuts The Home Depot (HD) Stake by $18M

Fundsmith trimmed its position in home improvement giant The Home Depot, Inc. (NYSE: HD). According to the investment firm's latest Form 13F filing with the SEC for the quarter ended May 15, 2026, the fund reduced its holdings by 64.33%. It sold 51,595 shares, leaving it with 28,611 shares. At the close of that reporting period, the remaining stake was worth about $10.09 million. Keep in mind that 13F filings are backward-looking and only show holdings as of the filing date, meaning they do not necessarily reflect the fund's current portfolio today.

Fundsmith Shakes Up Its Home Depot Holdings

Fundsmith, managed by Terry Smith, is well-known for its concentrated, buy-and-hold investment style, typically focusing on a small group of high-quality global businesses. Seeing the fund slash its stake in Home Depot by nearly two-thirds represents a significant pivot. This reduction comes alongside other recent shifts by the fund, including completely selling out of its position in Graco Inc. around the same time.

Institutional and Political Trades on Home Depot

While Fundsmith was scaling back its exposure, other institutional investors have taken the opposite approach. For instance, Foster Group recently boosted its Home Depot holdings by more than 220%, showing a strong appetite for the retailer. Meanwhile, Capitol Hill has seen mixed trading activity. Democratic Congressman Rick Larsen sold a chunk of shares valued between $1,001 and $15,000 on October 8, 2026, following a similar sale by Oklahoma Representative Kevin Hern in September. On the buying side, Democratic Representative Lloyd Doggett purchased Home Depot shares valued between $1,001 and $15,000 in mid-September.

Home Depot Stock Performance

Shares of Home Depot closed at $352.68 on Saturday. The stock has been trading in a 52-week range of $277.15 to $397.63. Currently, the share price is hovering above its 50-day moving average of $313.97 and its 200-day moving average of $336.47. Home Depot has a market capitalization of $307.53 billion and trades at a price-to-earnings (P/E) ratio of 21.45, with a forward P/E of 19.28.

Recent Earnings

Home Depot continues to show steady financial performance. The company generated total revenue of $169.18 billion, representing a revenue growth rate of 5.7%. Its net margin stands at 8.41%, and its return on equity is an impressive 104.30%. Shareholders can look forward to the next quarterly earnings report, which is scheduled for November 17, 2026.

Dividend Payouts

For income-focused investors, Home Depot remains a solid option. The retailer offers a dividend yield of 3.02%. This payout is backed by a dividend payout ratio of 64.8%, showing that the company returns a significant portion of its earnings back to its shareholders while maintaining enough cash to reinvest in its retail operations.

Analysts Set New Price Targets

Wall Street analysts remain generally positive on the home improvement retailer. A total of 32 analysts follow the stock, giving it a consensus recommendation of buy. The average analyst price target is $379.75. Several firms updated their views in August and September 2026. On September 9, 2026, Bernstein kept its Market Perform rating on the stock and adjusted its price target to $344.00. Mizuho maintained an Outperform rating on August 19, 2026, with a price target of $390.00. That same day, DA Davidson reiterated its Buy rating with a $377.00 price target, and UBS kept a Buy rating with a $420.00 target. Truist Securities also maintained its Buy rating on August 19, 2026, setting its price target at $373.00, while RBC Capital held a Sector Perform rating with a target of $342.00.

About The Home Depot

The Home Depot is the world's largest home improvement specialty retailer, operating stores across the United States, Canada, and Mexico. The Atlanta-based company sells building materials, lawn and garden products, and decor, while also offering installation and tool rental services. It serves both everyday do-it-yourself homeowners and professional contractors.

What to Watch at The Home Depot, Inc.

Investors will want to keep an eye on Home Depot's upcoming earnings report on November 17, 2026, to see if consumer spending on home renovation projects remains resilient. Additionally, upcoming quarterly institutional filings will show whether Fundsmith has continued to trim its position or if other major funds are stepping in to buy the retail giant's shares. Keep in mind that 13F filings only offer a backward-looking glance at past holdings and do not serve as a recommendation to buy or sell.