Great Lakes Advisors LLC Makes New $4.79 Million Investment in The Home Depot, Inc. $HD

Key Points

• Great Lakes Advisors initiated a $4.79 million Home Depot position, buying 13,578 shares during the second quarter. Institutional investors collectively own 70.86% of the company.
• Home Depot exceeded quarterly expectations, reporting $47.86 billion in revenue, up 5.7% year over year, and adjusted EPS of $4.92 versus the $4.73 consensus. However, a $685 million tariff refund boosted results, while high mortgage rates continue to shift demand toward smaller projects.
• The stock was recently priced near $337.97, and analysts maintain a “Moderate Buy” consensus with an average price target of $375.54. Home Depot also declared a quarterly dividend of $2.33 per share, representing a 2.8% annualized yield.

Great Lakes Advisors LLC purchased a new position in shares of The Home Depot, Inc. (NYSE:HD - Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor purchased 13,578 shares of the home improvement retailer's stock, valued at approximately $4,789,000.

Other hedge funds and other institutional investors have also modified their holdings of the company. Gator Capital Management LLC bought a new stake in Home Depot in the fourth quarter valued at about $3,693,000. King Luther Capital Management Corp grew its stake in shares of Home Depot by 0.6% in the 4th quarter. King Luther Capital Management Corp now owns 1,240,478 shares of the home improvement retailer's stock valued at $426,848,000 after purchasing an additional 7,180 shares during the period. Thompson Siegel & Walmsley LLC raised its holdings in shares of Home Depot by 320.4% in the 4th quarter. Thompson Siegel & Walmsley LLC now owns 11,292 shares of the home improvement retailer's stock worth $3,886,000 after buying an additional 8,606 shares in the last quarter. Sarasin & Partners LLP lifted its position in shares of Home Depot by 4.0% during the 2nd quarter. Sarasin & Partners LLP now owns 687,219 shares of the home improvement retailer's stock worth $242,368,000 after buying an additional 26,357 shares during the period. Finally, Capital International Inc. CA raised its stake in Home Depot by 4.3% during the fourth quarter. Capital International Inc. CA now owns 150,368 shares of the home improvement retailer's stock worth $51,742,000 after acquiring an additional 6,187 shares in the last quarter. Institutional investors own 70.86% of the company's stock.

Key Headlines Impacting Home Depot

Here are the key news stories impacting Home Depot this week:

• Positive Sentiment: Home Depot reported quarterly revenue of $47.86 billion, up 5.7% year over year and above expectations, while adjusted diluted EPS of $4.92 exceeded the $4.73 consensus estimate. The results provided support for the stock, although they did not yet indicate a broad-based recovery in home improvement. Home Depot Q2 estimates and tariff refund
• Positive Sentiment: Management commentary indicated that smaller projects are driving growth as high mortgage rates and housing affordability challenges weigh on larger purchases. This suggests customers remain active, even if demand is shifting toward lower-cost jobs. Home Depot Q2 earnings call transcript
• Positive Sentiment: Home Depot’s 17-year dividend growth streak remains an attraction for income-oriented investors who can collect dividends while waiting for housing and renovation demand to improve. Home Depot dividend streak
• Neutral Sentiment: A $685 million tariff refund contributed to the quarterly outcome, raising concerns that part of the earnings strength may be one-time rather than driven by ongoing operating improvement. Home Depot tariff refund analysis
• Neutral Sentiment: The nationwide launch of three-hour delivery expands Home Depot’s e-commerce and fulfillment capabilities, but its effect on sales and margins remains unproven. Home Depot three-hour delivery
• Neutral Sentiment: Articles highlighting HD’s long-term multibagger returns and ownership by prominent investors may reinforce the company’s appeal, but they are not immediate earnings catalysts. Home Depot long-term returns
• Negative Sentiment: Home Depot’s CFO sold approximately $2.1 million of company stock. While insider selling can reflect personal financial planning, it may weigh modestly on sentiment. Home Depot CFO stock sale

Home Depot Stock Up 0.2%

NYSE:HD opened at $337.97 on Wednesday. The company has a quick ratio of 0.31, a current ratio of 1.08 and a debt-to-equity ratio of 2.64. The Home Depot, Inc. has a 12-month low of $289.10 and a 12-month high of $426.75. The stock's fifty day simple moving average is $341.04 and its 200-day simple moving average is $339.54. The firm has a market capitalization of $337.00 billion, a P/E ratio of 23.65, a P/E/G ratio of 3.72 and a beta of 0.95.

Home Depot (NYSE:HD - Get Free Report) last announced its quarterly earnings results on Tuesday, August 18th. The home improvement retailer reported $4.92 EPS for the quarter, beating analysts' consensus estimates of $4.73 by $0.19. The company had revenue of $47.86 billion during the quarter, compared to analysts' expectations of $47.24 billion. Home Depot had a return on equity of 106.42% and a net margin of 8.41%.Home Depot's revenue was up 5.7% on a year-over-year basis. During the same period in the prior year, the business posted $4.68 EPS. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. Equities research analysts expect that The Home Depot, Inc. will post 14.99 earnings per share for the current year.

Home Depot Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 17th. Investors of record on Thursday, September 3rd will be given a $2.33 dividend. The ex-dividend date is Thursday, September 3rd. This represents a $9.32 dividend on an annualized basis and a dividend yield of 2.8%. Home Depot's dividend payout ratio is currently 65.22%.

Insider Activity at Home Depot

In other news, CFO Richard V. Mcphail sold 5,989 shares of Home Depot stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $348.40, for a total transaction of $2,086,567.60. Following the transaction, the chief financial officer owned 48,104 shares in the company, valued at $16,759,433.60. The trade was a 11.07% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.08% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

HD has been the topic of several analyst reports. JPMorgan Chase & Co. lowered their target price on shares of Home Depot from $423.00 to $396.00 and set an "overweight" rating on the stock in a report on Wednesday, May 20th. Evercore cut their price target on shares of Home Depot from $415.00 to $400.00 and set an "outperform" rating for the company in a report on Wednesday, May 20th. Guggenheim restated a "buy" rating and issued a $425.00 price target on shares of Home Depot in a research report on Wednesday, August 19th. Argus reaffirmed a "buy" rating and set a $400.00 price objective on shares of Home Depot in a research note on Wednesday, August 19th. Finally, Jefferies Financial Group reiterated a "buy" rating and set a $398.00 price target on shares of Home Depot in a research report on Tuesday, August 18th. Eighteen equities research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $375.54.

Home Depot Profile

The Home Depot, Inc NYSE: HD is a leading home improvement retailer that operates large-format stores and an integrated online platform offering a broad range of products and services for do-it-yourself consumers, professional contractors and businesses. The company was founded in 1978 by Bernard Marcus and Arthur Blank and is headquartered in Atlanta, Georgia. Since opening its first stores at the end of the 1970s, Home Depot has grown into a multinational retailer known for its orange-branded stores and wide assortment of home improvement merchandise.

Home Depot's core business includes the sale of building materials, lumber, tools, hardware, appliances, paint, plumbing and electrical supplies, lawn and garden products, and home décor.

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