Home BancShares (NYSE:HOMB) Sets New 12-Month High on Strong Earnings

Home BancShares, Inc. (NYSE:HOMB)’s stock price hit a new 52-week high during mid-day trading on Thursday following a better than expected earnings announcement. The company traded as high as $30.88 and last traded at $30.8150, with a volume of 2053551 shares traded. The stock had previously closed at $29.29.

The financial services provider reported $0.64 EPS for the quarter, topping analysts’ consensus estimates of $0.62 by $0.02. Home BancShares had a return on equity of 11.11% and a net margin of 32.48%.The company had revenue of $295.10 million for the quarter, compared to the consensus estimate of $288.70 million. During the same period in the previous year, the business earned $0.58 earnings per share. The firm’s revenue for the quarter was up 8.9% on a year-over-year basis.

Home BancShares Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, June 3rd. Stockholders of record on Wednesday, May 13th were issued a dividend of $0.21 per share. This represents a $0.84 annualized dividend and a dividend yield of 2.7%. The ex-dividend date of this dividend was Wednesday, May 13th. Home BancShares’s dividend payout ratio is 34.57%.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on HOMB. Piper Sandler set a $33.00 price target on shares of Home BancShares and gave the stock an “overweight” rating in a research report on Friday, April 17th. Stephens lowered their price objective on shares of Home BancShares from $34.00 to $32.00 and set an “overweight” rating for the company in a research report on Friday, April 17th. Keefe, Bruyette & Woods dropped their price objective on shares of Home BancShares from $32.00 to $30.00 and set a “market perform” rating for the company in a research note on Monday, April 20th. Wall Street Zen downgraded shares of Home BancShares from a “hold” rating to a “sell” rating in a report on Saturday, April 18th. Finally, Cantor Fitzgerald restated a “neutral” rating on shares of Home BancShares in a research report on Thursday. Two analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $31.20.

Insider Buying and Selling at Home BancShares

In related news, CAO Jennifer C. Floyd sold 3,000 shares of the firm’s stock in a transaction on Tuesday, April 21st. The stock was sold at an average price of $27.11, for a total value of $81,330.00. Following the completion of the sale, the chief accounting officer directly owned 4,635 shares in the company, valued at $125,654.85. This trade represents a 39.29% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO John W. Allison acquired 100,000 shares of the company’s stock in a transaction on Friday, April 17th. The shares were purchased at an average cost of $26.96 per share, with a total value of $2,696,000.00. Following the completion of the purchase, the chief executive officer directly owned 5,798,926 shares of the company’s stock, valued at $156,339,044.96. This trade represents a 1.75% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Corporate insiders own 6.39% of the company’s stock.

Hedge Funds Weigh In On Home BancShares

A number of large investors have recently made changes to their positions in HOMB. Police & Firemen s Retirement System of New Jersey increased its holdings in Home BancShares by 0.8% during the 4th quarter. Police & Firemen s Retirement System of New Jersey now owns 52,582 shares of the financial services provider’s stock worth $1,461,000 after purchasing an additional 410 shares during the period. Quadrant Capital Group LLC lifted its holdings in shares of Home BancShares by 4.3% in the 3rd quarter. Quadrant Capital Group LLC now owns 10,360 shares of the financial services provider’s stock worth $293,000 after buying an additional 425 shares during the period. Villanova Investment Management Co LLC grew its position in shares of Home BancShares by 0.4% during the 4th quarter. Villanova Investment Management Co LLC now owns 114,093 shares of the financial services provider’s stock worth $3,170,000 after buying an additional 468 shares in the last quarter. Root Financial Partners LLC grew its position in shares of Home BancShares by 76.9% during the 1st quarter. Root Financial Partners LLC now owns 1,090 shares of the financial services provider’s stock worth $29,000 after buying an additional 474 shares in the last quarter. Finally, DRW Securities LLC increased its stake in shares of Home BancShares by 2.8% during the fourth quarter. DRW Securities LLC now owns 19,495 shares of the financial services provider’s stock valued at $542,000 after buying an additional 524 shares during the period. 67.31% of the stock is owned by hedge funds and other institutional investors.

Home BancShares Price Performance

The company has a debt-to-equity ratio of 0.18, a current ratio of 0.92 and a quick ratio of 0.92. The firm has a fifty day moving average of $27.52 and a two-hundred day moving average of $27.78. The stock has a market capitalization of $6.20 billion, a P/E ratio of 12.67 and a beta of 0.68.

Home BancShares Company Profile

Home BancShares, Inc is a bank holding company based in Conway, Arkansas, operating through its primary subsidiary, Home Bank, National Association. Founded in March 1999, the company provides a comprehensive suite of banking services to individuals, small and middle-market businesses, and public entities. These services encompass deposit accounts, consumer and commercial lending, mortgage origination and servicing, treasury management, and wealth management solutions.

The company’s core products include checking and savings accounts, certificates of deposit, and money market accounts, as well as a variety of loan offerings such as commercial real estate financing, equipment loans, agricultural lending, and residential mortgages.