Dearborn Partners LLC Invests $22.43 Million in The Home Depot, Inc. $HD

Dearborn Partners LLC bought a new position in The Home Depot, Inc. (NYSE:HD) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm bought 63,599 shares of the home improvement retailer’s stock, valued at approximately $22,430,000.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Bank of Nova Scotia acquired a new position in Home Depot during the second quarter valued at approximately $118,723,000. Gator Capital Management LLC acquired a new stake in shares of Home Depot in the fourth quarter worth $3,693,000. AFT Forsyth & Company Inc. purchased a new position in shares of Home Depot in the 2nd quarter valued at $1,896,000. King Luther Capital Management Corp raised 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 acquiring an additional 7,180 shares during the period. Finally, E Fund Management Co. Ltd. acquired a new position in shares of Home Depot during the 2nd quarter valued at $3,915,000. Institutional investors and hedge funds own 70.86% of the company’s stock.

Key Home Depot News

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

• Positive Sentiment: Home Depot is expanding its AI-powered Magic Apron tools across all U.S. stores. The technology provides localized product searches and project assistance, potentially improving customer engagement and supporting the company’s “Pro” growth strategy. Some analysis estimates the stock could be roughly 15% undervalued if that growth narrative gains traction. Home Depot Could Be 15% Undervalued On Its Pro Growth Narrative
• Positive Sentiment: The retailer’s latest quarterly results exceeded expectations, with earnings of $4.92 per share versus the $4.73 consensus and revenue of $47.86 billion, up 5.7% year over year. Analysts maintain a “Moderate Buy” consensus rating and an average price target above the current trading level.
• Positive Sentiment: Home Depot is scheduled to pay a quarterly dividend of $2.33 per share on September 17 to shareholders of record on September 3. The annualized dividend is $9.32, representing a yield of approximately 2.8%.
• Neutral Sentiment: Chief Financial Officer Richard McPhail and merchandising executive Billy Bastek will present at the Goldman Sachs Global Consumer and Retail Conference on September 15. Investors may look for updated commentary on demand, housing trends, and the professional business. The Home Depot to Present at the Goldman Sachs Global Consumer and Retail Conference
• Negative Sentiment: High mortgage rates continue to discourage homeowners from moving, with the probability of changing residences reaching a record-low 13.5%. Home Depot reportedly sees “no sign” of a housing-market turnaround, which weighs on renovation and big-ticket project demand. Americans Stop Moving as Mortgage Lock-In Persists
• Negative Sentiment: DIY demand remains weak as consumers defer larger home-improvement projects. Digital sales, broader category gains, and higher big-ticket sales provide some offset, but continued consumer caution is a near-term concern. Home Depot Faces Weak DIY Demand
• Negative Sentiment: Executive Vice President Teresa Wynn Roseborough sold 2,455 shares valued at approximately $807,000, reducing her direct ownership by 14.86%. While a single insider sale does not establish a trend, it may add modest pressure to investor sentiment. Teresa Wynn Roseborough Sells Shares of Home Depot

Wall Street Analysts Forecast Growth

HD has been the subject of several recent research reports. Stifel Nicolaus increased their price target on Home Depot from $320.00 to $340.00 and gave the company a “hold” rating in a report on Monday, August 17th. Morgan Stanley reduced their price objective on Home Depot from $420.00 to $400.00 and set an “overweight” rating on the stock in a research note on Wednesday, May 20th. Truist Financial increased their target price on Home Depot from $369.00 to $373.00 and gave the company a “buy” rating in a research note on Wednesday, August 19th. TD Cowen reissued a “buy” rating on shares of Home Depot in a research report on Monday, August 10th. Finally, Wall Street Zen raised shares of Home Depot from a “sell” rating to a “hold” rating in a research report on Tuesday, June 2nd. Eighteen research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $375.54.

Insiders Place Their Bets

In other Home Depot news, EVP Michael F. Rowe sold 710 shares of the company’s stock in a transaction that occurred on Wednesday, August 26th. The stock was sold at an average price of $336.76, for a total value of $239,099.60. Following the transaction, the executive vice president directly owned 6,838 shares of the company’s stock, valued at $2,302,764.88. This represents a 9.41% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, EVP Teresa Wynn Roseborough sold 2,455 shares of the stock in a transaction that occurred on Friday, August 28th. The shares were sold at an average price of $328.77, for a total value of $807,130.35. Following the transaction, the executive vice president owned 14,061 shares of the company’s stock, valued at approximately $4,622,834.97. This trade represents a 14.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 9,154 shares of company stock worth $3,132,798 in the last three months. 0.08% of the stock is owned by insiders.

Home Depot Stock Performance

NYSE:HD opened at $319.70 on Wednesday. The firm has a 50-day moving average of $340.90 and a two-hundred day moving average of $337.53. The company has a debt-to-equity ratio of 2.64, a current ratio of 1.08 and a quick ratio of 0.31. The stock has a market cap of $318.96 billion, a P/E ratio of 22.37, a PEG ratio of 3.61 and a beta of 0.96. The Home Depot, Inc. has a 1-year low of $289.10 and a 1-year high of $426.75.

Home Depot (NYSE:HD) last announced its earnings results on Tuesday, August 18th. The home improvement retailer reported $4.92 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.73 by $0.19. Home Depot had a return on equity of 106.42% and a net margin of 8.41%.The business had revenue of $47.86 billion for the quarter, compared to analyst estimates of $47.24 billion. During the same period in the previous year, the company earned $4.68 earnings per share. The company’s revenue for the quarter was up 5.7% compared to the same quarter last year. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. On average, research analysts expect that The Home Depot, Inc. will post 15 earnings per share for the current fiscal year.

Home Depot Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 17th. Shareholders of record on Thursday, September 3rd will be issued a dividend of $2.33 per share. The ex-dividend date is Thursday, September 3rd. This represents a $9.32 annualized dividend and a yield of 2.9%. Home Depot’s payout ratio is currently 65.22%.

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.