Home BancShares (NYSE:HOMB) Releases Earnings Results, Beats Estimates By $0.01 EPS

Key Points

• Home BancShares reported quarterly EPS of $0.65, topping analysts’ $0.64 consensus estimate. The company posted an 11.12% return on equity and a 32.10% net margin.
• Shares slipped 0.2% to $28.30 following the results, while analysts maintained a generally positive outlook. The stock has a “Moderate Buy” consensus rating and an average price target of $33.00.
• The company raised its quarterly dividend to $0.23 per share, or $0.92 annualized, representing a 3.3% yield and a 38.02% payout ratio.

Home BancShares (NYSE:HOMB - Get Free Report) released its quarterly earnings results on Wednesday. The financial services provider reported $0.65 earnings per share for the quarter, beating analysts' consensus estimates of $0.64 by $0.01, FiscalAI reports. Home BancShares had a return on equity of 11.12% and a net margin of 32.10%.

Home BancShares Stock Down 0.2%

NYSE:HOMB traded down $0.06 on Wednesday, hitting $28.30. 1,954,194 shares of the company's stock traded hands, compared to its average volume of 1,567,247. The company has a current ratio of 0.92, a quick ratio of 0.92 and a debt-to-equity ratio of 0.16. Home BancShares has a 1 year low of $25.50 and a 1 year high of $31.70. The firm has a 50-day moving average price of $29.71 and a 200-day moving average price of $28.55. The company has a market cap of $5.66 billion, a PE ratio of 11.70 and a beta of 0.72.

Home BancShares Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 2nd. Shareholders of record on Wednesday, August 12th were paid a dividend of $0.23 per share. This is a boost from Home BancShares's previous quarterly dividend of $0.21. The ex-dividend date of this dividend was Wednesday, August 12th. This represents a $0.92 annualized dividend and a yield of 3.3%. Home BancShares's dividend payout ratio (DPR) is presently 38.02%.

Insider Activity

In related news, CEO John Tipton sold 12,000 shares of the firm's stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $31.59, for a total transaction of $379,080.00. Following the completion of the sale, the chief executive officer directly owned 76,308 shares in the company, valued at approximately $2,410,569.72. This trade represents a 13.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 6.39% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

A number of research firms have commented on HOMB. Keefe, Bruyette & Woods upped their price objective on shares of Home BancShares from $30.00 to $32.00 and gave the company a "market perform" rating in a research note on Friday, July 17th. Stephens lifted their target price on shares of Home BancShares from $32.00 to $35.00 and gave the stock an "overweight" rating in a research report on Friday, July 17th. Cantor Fitzgerald reissued an "overweight" rating and issued a $31.00 target price (up from $30.00) on shares of Home BancShares in a research report on Wednesday, August 19th. Benchmark assumed coverage on shares of Home BancShares in a report on Wednesday, June 24th. They set a "hold" rating on the stock. Finally, Hovde Group started coverage on shares of Home BancShares in a report on Tuesday, September 8th. They set an "outperform" rating and a $34.00 price target on the stock. Five analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Home BancShares currently has a consensus rating of "Moderate Buy" and an average target price of $33.00.

About Home BancShares

Home BancShares, Inc is a bank holding company headquartered in Conway, Arkansas. Through its principal banking subsidiary, Centennial Bank, the company provides a range of financial services to individuals, businesses and institutions.

Centennial Bank offers deposit accounts, residential and commercial real estate lending, consumer loans, commercial and industrial financing, treasury management, online and mobile banking, and other traditional banking services. The bank serves customers through a network of financial centers and digital channels.

Home BancShares was established in 1998 and has expanded through a combination of organic growth and acquisitions.

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