The Gates Foundation Trust, managed by Cascade Asset Management, has disclosed a new position in The Home Depot (NYSE: HD) in its latest 13F filing. As of June 30, 2026, the trust held 1,000,000 shares of the home improvement retailer, valued at approximately $352.68 million. This position represents 1.02% of the trust's total disclosed 13F securities, which amounted to $34.42 billion across 24 holdings.
It is important to clarify that this filing does not signify a personal acquisition by Bill Gates. While Gates serves as a trustee, the investment decisions are made by Cascade, which also manages Gates's private wealth through Cascade Investment, L.L.C. The 13F form provides a snapshot of holdings at the end of the quarter, not a transaction history. It does not include the trade date, cost basis, or the rationale behind the investment.
Home Depot's Market Performance
Home Depot's stock closed at $335.61 on Friday, August 21, 2026, down 4.84% from the quarter-end reference price of $352.68 used in the filing. If the trust still holds the same number of shares, the position's market value would have declined by approximately $17.07 million to $335.61 million. The stock rose 0.33% on Friday but ended the week 0.96% lower. Year-to-date, shares have fallen 2.47%, and over the past twelve months, they are down 18.70%.
Financial Results and Outlook
Despite the stock's recent weakness, Home Depot reported a solid fiscal second quarter. Net sales increased 5.7% to $47.86 billion, while comparable sales rose 1.7%. Adjusted earnings per share came in at $4.92, up 5.1% from the prior year. CFO Richard McPhail noted that the company's second-quarter results exceeded expectations. The company maintained its full-year guidance, projecting sales growth of 2.5% to 4.5%, comparable sales growth of 0% to 2%, and adjusted EPS growth of 0% to 4%. The board also declared a quarterly dividend of $2.33 per share, marking the 158th consecutive cash distribution.
Dividend and Analyst Sentiment
At Friday's closing price, the dividend yield stands at 2.78%. For a hypothetical holding of one million shares, the annual dividend income would be $9.32 million, assuming the payout remains unchanged. Analysts remain generally positive on the stock, with 22 rating it Buy or Overweight and 17 recommending Hold. The consensus price target is $380, implying a potential upside of 13.2% from Friday's close. Price targets range from $310 to $425.
Market Risks and Economic Data
Investors should be mindful of risks, including elevated borrowing costs that could dampen large renovation projects. Single-family housing starts fell 9.9% in July, and comparable transactions at Home Depot slipped 1.0%. Tariffs, rising fuel prices, and a prolonged housing recovery could also pressure margins. Next week, the market will focus on July new-home sales data, second-quarter GDP, and July inflation figures, which could influence mortgage rate forecasts.
The Gates Foundation Trust's disclosure adds a notable institutional holder to Home Depot's shareholder base, but it is just one of many factors that could influence the stock's trajectory in the coming months.
