Albion Financial Disposes of $11.3 Million Worth of Home Depot (NYSE: HD) Shares: Should Investors Follow?
Key Points
Albion Financial sold 28,792 shares of The Home Depot, estimated at ~$11.32 million based on the average price for the quarter.
The transaction represented 0.68% of the fund’s reportable U.S. equity assets under management (AUM).
Albion's post-sale position: 39,187 shares, valued at $15.88 million as of September 30, 2025.
The stake now accounts for 0.96% of AUM, placing it outside the fund's top five holdings.
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Albion Financial Group disclosed in an October 20, 2025, SEC filing that it sold 28,792 shares of The Home Depot for an estimated $11.32 million during the third quarter of 2025.
What happened
According to a filing with the Securities and Exchange Commission dated October 20, 2025, Albion Financial Group reduced its position in The Home Depot (NYSE:HD) during the third quarter.
The fund sold 28,792 shares, bringing its holdings down to 39,187 shares, with an end-of-quarter value of $15.88 million.
What else to know
This was a sell transaction; the remaining stake represents 0.96% of Albion's reportable AUM, down from 1.6% in the previous quarter.
Albion's top holdings after the filing:
- Vanguard S&P 500 ETF: $201.96 million (12.20% of AUM) as of September 30, 2025
- Apple: $86.52 million (5.23% of AUM) as of September 30, 2025
- iShares Russell Mid-Cap ETF: $84.40 million (5.10% of AUM) as of September 30, 2025
- Microsoft: $72.24 million (4.36% of AUM) as of September 30, 2025
- Nvidia: $56.10 million (3.39% of AUM) as of September 30, 2025
As of October 20, 2025, shares of The Home Depot were priced at $388.89, down 4.31% over the past year and underperforming the S&P 500 by 20 percentage points.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $165.05 billion |
| Net Income (TTM) | $14.63 billion |
| Dividend Yield | 2.35% |
| Price (as of market close 2025-10-20) | $388.89 |
Company Snapshot
The Home Depot offers building materials, home improvement products, lawn and garden supplies, décor, installation services, and tool/equipment rentals.
It generates revenue primarily through in-store and online retail sales, as well as installation and rental services.
The company serves homeowners, professional contractors, maintenance professionals, property managers, and specialty tradespeople.
The Home Depot, Inc. is a leading home improvement retailer with a broad product assortment and a nationwide footprint.
Foolish take
After holding roughly 65,000 to 67,000 shares of Home Depot for two years, Albion Financial decided to sell over one-third of its stake in the company last quarter.
A firm like Albion can trim a position like this for any number of reasons, but it looks like the firm timed its sale pretty well, unloading the stock while it was back near all-time highs.
While this may or may not be the case, there's no denying that Home Depot's valuation in the last quarter was higher than normal. Trading at 28 times earnings, Home Depot was well above its 10-year average of 23. Currently, it still trades at 27 times earnings.
This valuation isn't outrageously expensive by any means, but the stock's revenue has been flat over the last three years, and its net income has dipped over the same time.
Making over $20 billion on acquisitions of distributors in adjacent housing niches recently, Home Depot looks like it might be trying to buy growth, which can be a risky proposition for businesses that don't have a long track record of acquisitions.
This added uncertainty, paired with Home Depot's rising valuation, may have combined to make its risk-reward ratio slightly unappealing for Albion, prompting its trimming of the position.
Ultimately, Home Depot dominates the home improvement niche and is actively trying to expand upon its leadership position -- all while paying investors a growing dividend and repurchasing shares consistently.
It won't be a multibagger anytime soon, but it could be a great pick for investors seeking passive income.
Glossary
AUM (Assets Under Management): The total market value of investments managed by a fund or financial institution.
Reportable U.S. equity assets: U.S. stocks that a fund must disclose in regulatory filings, typically large positions or holdings.
Stake: The portion of a company's shares owned by an investor or fund.
Top holdings: The largest investments in a fund's portfolio, usually by market value or percentage of assets.
Quarter: A three-month period used by companies and funds for financial reporting and analysis.
Filing: An official document submitted to regulators, such as the SEC, disclosing financial or ownership information.
TTM: The 12-month period ending with the most recent quarterly report.
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Josh Kohn-Lindquist has positions in Nvidia. The Motley Fool has positions in and recommends Apple, Home Depot, Microsoft, Nvidia, and Vanguard S&P 500 ETF. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
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