On Aug. 19, Morse Asset Management, Inc. reported selling 10,238 shares of The Home Depot in the second quarter, an estimated $3.71 million trade based on quarterly average pricing.
Key points
Sold 10,238 shares of The Home Depot; estimated transaction value ~$3.71 million based on quarterly average price.
The transaction represented 0.8% of Morse Asset Management's 13F reportable assets under management.
Post-trade stake: 17,947 shares valued at $6.58 million as of June 30.
The Home Depot now accounts for 1.4% of Morse Asset Management's 13F assets, down from 2.6% as of the previous quarter ended March 31.
What happened
According to a filing with the Securities and Exchange Commission published Aug. 15, Morse Asset Management reduced its position in The Home Depot by 10,238 shares during Q2 2025. The estimated transaction value, calculated using the quarterly average unadjusted closing price, was approximately $3.71 million. The post-trade position stands at 17,947 shares, worth $6.58 million as of June 30.
What else to know
This was a sell transaction; The Home Depot now represents 1.4% of Morse Asset Management's 13F reportable assets under management as of June 30.
Top holdings after the filing:
NVDA: $31.23 million (6.8% of AUM)
META: $22.40 million (4.9% of AUM)
MSFT: $21.37 million (4.7% of AUM)
AMZN: $19.73 million (4.3% of AUM)
AVGO: $17.97 million (3.9% of AUM)
Shares of The Home Depot were priced at $394.70 as of Aug. 18; one-year total return was 8.7%, underperforming the S&P 500 by 4.08 percentage points.
Dividend yield: 2.3% (rounded from 2.31%)
Forward price-to-earnings ratio: 26.3; EV/EBITDA (TTM): 17.7
Five-year revenue compound annual growth rate: 7.67%
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $159.51 billion |
| Net Income (TTM) | $14.81 billion |
| Dividend Yield | N/A |
| One-Year Price Change | 8.71% |
Company Snapshot
Offers building materials, home improvement products, lawn and garden supplies, décor, installation services, and tool/equipment rentals.
Generates revenue primarily through retail sales at physical stores and online platforms, supplemented by installation and rental services.
Serves homeowners, professional contractors, property managers, and specialty tradespeople in the United States.
The Home Depot is a leading home improvement retailer with a broad store network and a significant online presence. The company leverages its scale to offer a wide assortment of products and services tailored to both DIY consumers and professional customers.
Foolish take
Morse Asset's decision to close out its position in Home Depot highlights a key consideration that investors need to make in 2025. Namely, the question is over what the outlook for interest rates is in an environment of trade conflicts and tariffs.
It's no secret that many investors buy into stocks like Home Depot as a way to play the housing market. When house sales are high and house prices are rising, homeowners tend to refurbish newly bought homes or refurbish existing homes to prepare for a sale. As such, home improvement stores tend to do well when the housing market is doing well, and that usually means a favorable interest rate environment.
Unfortunately, market interest rates remain higher than many had previously expected they would be, and the 30-year mortgage rate is still well above 6% – not conditions conducive to a hot housing market. Part of the reason may be the tariffs imposed by the current administration, which are logically inflationary.
The US has long been seen as a country that controls inflation better due to a free market approach to imports, but the imposition of trade tariffs could change that over the long term.
That said, most observers took the recent speech by Federal Reserve Jerome Powell as indicative of a forthcoming interest rate cut. This would be good news for Home Depot.
Glossary
13F reportable assets: Securities that institutional investment managers must disclose quarterly to the SEC, showing their holdings.
Assets under management (AUM): The total market value of investments managed on behalf of clients by an investment firm.
Quarterly average price: The average closing price of a security over a three-month reporting period.
Dividend yield:Annual dividends per share divided by the share price, expressed as a percentage.
Forward price-to-earnings ratio: A valuation metric comparing a company's current share price to its expected future earnings per share.
EV/EBITDA: Enterprise value divided by earnings before interest, taxes, depreciation, and amortization; used to assess company valuation.
Compound annual growth rate (CAGR): The mean annual growth rate of an investment over a specified time period, assuming compounding.
Total return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.
TTM:The 12-month period ending with the most recent quarterly report.
