Capital Research Global Investors Has $155.24 Million Stock Holdings in Home BancShares, Inc. $HOMB

Key Points

• Capital Research Global Investors increased its Home BancShares stake by 4.5% in Q4, buying 238,548 shares and bringing its holding to 5.59 million shares worth about $155.24 million.
• Home BancShares reported quarterly earnings of $0.60 per share, matching analyst estimates, while revenue came in at $266.71 million versus expectations of $274.06 million. The company also announced a quarterly dividend of $0.21 per share, yielding about 3.1% annually.
• Analyst sentiment is mixed but cautious: the stock has a consensus Hold rating and an average price target of $31.20, while several firms recently lowered their price targets or ratings.

Capital Research Global Investors lifted its stake in shares of Home BancShares, Inc. (NYSE:HOMB - Free Report) by 4.5% in the fourth quarter, according to the company in its most recent filing with the SEC. The fund owned 5,588,267 shares of the financial services provider's stock after buying an additional 238,548 shares during the quarter. Capital Research Global Investors owned about 2.84% of Home BancShares worth $155,242,000 as of its most recent SEC filing.

A number of other hedge funds also recently modified their holdings of the stock. Vanguard Group Inc. lifted its stake in shares of Home BancShares by 3.1% during the 4th quarter. Vanguard Group Inc. now owns 20,423,768 shares of the financial services provider's stock worth $567,372,000 after buying an additional 621,751 shares during the last quarter. Dimensional Fund Advisors LP lifted its stake in shares of Home BancShares by 0.8% during the 3rd quarter. Dimensional Fund Advisors LP now owns 5,957,496 shares of the financial services provider's stock worth $168,597,000 after buying an additional 45,848 shares during the last quarter. Barr E S & Co. lifted its stake in shares of Home BancShares by 3.0% during the 4th quarter. Barr E S & Co. now owns 2,413,987 shares of the financial services provider's stock worth $67,061,000 after buying an additional 70,717 shares during the last quarter. Norges Bank acquired a new stake in Home BancShares in the 4th quarter worth about $66,673,000. Finally, First Trust Advisors LP raised its stake in Home BancShares by 52.5% in the 3rd quarter. First Trust Advisors LP now owns 2,230,065 shares of the financial services provider's stock worth $63,111,000 after purchasing an additional 767,844 shares in the last quarter. Institutional investors and hedge funds own 67.31% of the company's stock.

Wall Street Analysts Forecast Growth

HOMB has been the subject of several analyst reports. Weiss Ratings cut shares of Home BancShares from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Tuesday, May 26th. 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. Stephens dropped 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 note on Friday, April 17th. Piper Sandler set a $33.00 price objective on shares of Home BancShares and gave the stock an "overweight" rating in a research note on Friday, April 17th. Finally, Wall Street Zen cut shares of Home BancShares from a "hold" rating to a "sell" rating in a research note on Saturday, April 18th. Two equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. According to MarketBeat, Home BancShares has a consensus rating of "Hold" and an average price target of $31.20.

Home BancShares Price Performance

HOMB stock opened at $27.10 on Tuesday. The company has a quick ratio of 0.92, a current ratio of 0.92 and a debt-to-equity ratio of 0.18. Home BancShares, Inc. has a 12 month low of $25.50 and a 12 month high of $30.83. The firm has a market cap of $5.46 billion, a P/E ratio of 11.15 and a beta of 0.68. The company's 50-day moving average price is $26.85 and its two-hundred day moving average price is $27.76.

Home BancShares (NYSE:HOMB - Get Free Report) last released its earnings results on Wednesday, April 15th. The financial services provider reported $0.60 EPS for the quarter, meeting the consensus estimate of $0.60. Home BancShares had a net margin of 32.48% and a return on equity of 11.11%. The firm had revenue of $266.71 million for the quarter, compared to analyst estimates of $274.06 million. During the same period last year, the firm earned $0.56 EPS. The business's quarterly revenue was up 2.5% compared to the same quarter last year. On average, analysts anticipate that Home BancShares, Inc. will post 2.48 earnings per share for the current fiscal year.

Home BancShares Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, June 3rd. Investors of record on Wednesday, May 13th were issued a dividend of $0.21 per share. The ex-dividend date of this dividend was Wednesday, May 13th. This represents a $0.84 annualized dividend and a dividend yield of 3.1%. Home BancShares's payout ratio is 34.57%.

Insider Activity at Home BancShares

In related news, CEO John W. Allison purchased 100,000 shares of the firm's stock in a transaction that occurred on Friday, April 17th. The shares were bought at an average cost of $26.96 per share, with a total value of $2,696,000.00. Following the acquisition, the chief executive officer 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 position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CAO Jennifer C. Floyd sold 3,000 shares of Home BancShares stock in a transaction that occurred on Tuesday, April 21st. The shares were sold at an average price of $27.11, for a total transaction of $81,330.00. Following 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 disclosure for this sale is available in the SEC filing. Insiders own 6.39% of the company's stock.

About Home BancShares

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.

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