Home BancShares, Inc. (NYSE:HOMB) Shareholders to Collect $0.23 Quarterly Dividend

Key Points

• Home BancShares declared a quarterly dividend of $0.23 per share, payable December 2 to shareholders of record November 11. The annualized dividend is $0.92, a 3.1% yield.
• The company has raised its dividend for 15 consecutive years, and its current payout is covered by earnings. Analysts expect next year’s earnings to cover the annual dividend with a projected payout ratio of 35.8%.
• Quarterly earnings were $0.65 per share, beating the $0.64 consensus estimate, while revenue of $288.44 million fell short of expectations despite rising 3.9% year over year.

Home BancShares, Inc. (NYSE:HOMB - Get Free Report) announced a quarterly dividend on Friday, October 16th. Stockholders of record on Wednesday, November 11th will be given a dividend of $0.23 per share by the financial services provider on Wednesday, December 2nd. This represents a $0.92 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date of this dividend is Tuesday, November 10th.

Home BancShares has increased its dividend payment by an average of 0.1% per year over the last three years and has raised its dividend every year for the last 15 years. Home BancShares has a dividend payout ratio of 39.8% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Home BancShares to earn $2.57 per share next year, which means the company should continue to be able to cover its $0.92 annual dividend with an expected future payout ratio of 35.8%.

Home BancShares Stock Down 0.6%

Shares of NYSE HOMB opened at $29.89 on Friday. The stock has a market cap of $5.98 billion, a P/E ratio of 12.25 and a beta of 0.73. The business's fifty day simple moving average is $29.39 and its 200-day simple moving average is $28.59. Home BancShares has a 12-month low of $25.50 and a 12-month high of $31.70. The company has a current ratio of 0.92, a quick ratio of 0.92 and a debt-to-equity ratio of 0.12.

Home BancShares (NYSE:HOMB - Get Free Report) last released its earnings results on Wednesday, October 14th. The financial services provider reported $0.65 EPS for the quarter, topping the consensus estimate of $0.64 by $0.01. Home BancShares had a return on equity of 11.14% and a net margin of 32.36%. The firm had revenue of $288.44 million during the quarter, compared to analysts' expectations of $294.42 million. During the same period in the previous year, the firm posted $0.61 EPS. Home BancShares's revenue for the quarter was up 3.9% on a year-over-year basis. As a group, equities analysts predict that Home BancShares will post 2.53 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director John W. Allison II sold 13,500 shares of the business's stock in a transaction on Thursday, October 29th. The shares were sold at an average price of $30.06, for a total value of $405,810.00. Following the completion of the sale, the director directly owned 636,495 shares of the company's stock, valued at $19,133,039.70. The trade was a 2.08% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 6.39% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Home BancShares

Several hedge funds have recently made changes to their positions in HOMB. IFP Advisors Inc increased its holdings in shares of Home BancShares by 490.4% in the 3rd quarter. IFP Advisors Inc now owns 1,293 shares of the financial services provider's stock valued at $36,000 after acquiring an additional 1,074 shares during the period. Trust Co. of Vermont purchased a new stake in shares of Home BancShares in the second quarter valued at about $41,000. Provenance Wealth Advisors LLC acquired a new position in shares of Home BancShares during the third quarter worth about $41,000. Ancora Advisors LLC acquired a new position in shares of Home BancShares during the second quarter worth about $45,000. Finally, Parallel Advisors LLC raised its holdings in Home BancShares by 62.5% during the third quarter. Parallel Advisors LLC now owns 1,620 shares of the financial services provider's stock worth $46,000 after purchasing an additional 623 shares in the last quarter. Hedge funds and other institutional investors own 67.31% of the company's stock.

Home BancShares Company Profile

Home BancShares, Inc is a bank holding company headquartered in Conway, Arkansas. Through its principal subsidiary, Centennial Bank, the company provides banking services to businesses, individuals and institutions, including commercial and consumer lending, residential and commercial real estate loans, deposit accounts, cash management and online banking services.

Centennial Bank serves customers through a network of financial centers and digital banking channels in markets across Arkansas, Florida, Alabama and Texas.

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