Formula Growth Ltd. Acquires New Position in Home BancShares, Inc. $HOMB

Key Points

• Formula Growth Ltd. acquired 51,912 shares of Home BancShares during the second quarter, valued at approximately $1.48 million. Institutional investors and hedge funds collectively own 67.31% of the company.
• Home BancShares exceeded quarterly earnings expectations, reporting $0.64 EPS versus the $0.62 consensus and $295.1 million in revenue, up 8.9% year over year. The company also raised its quarterly dividend to $0.23, implying a 3.1% annualized yield.
• Analysts maintain a generally positive outlook, with an average rating of “Moderate Buy” and a $32.83 price target versus the stock’s reported $29.70 price. CEO John Stephen Tipton separately sold 12,000 shares, reducing his direct stake by 13.59%.

Formula Growth Ltd. acquired a new position in shares of Home BancShares, Inc. (NYSE:HOMB - Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund acquired 51,912 shares of the financial services provider's stock, valued at approximately $1,482,000.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Root Financial Partners LLC lifted 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 valued at $29,000 after acquiring an additional 474 shares during the period. CIBC Private Wealth Group LLC grew its holdings in shares of Home BancShares by 164.8% in the 4th quarter. CIBC Private Wealth Group LLC now owns 1,083 shares of the financial services provider's stock worth $30,000 after acquiring an additional 674 shares during the period. Kestra Advisory Services LLC purchased a new position in Home BancShares in the 4th quarter valued at approximately $36,000. Covestor Ltd increased its stake in Home BancShares by 110.6% in the 4th quarter. Covestor Ltd now owns 1,327 shares of the financial services provider's stock valued at $37,000 after purchasing an additional 697 shares in the last quarter. Finally, Binnacle Investments Inc raised its holdings in Home BancShares by 76.7% during the second quarter. Binnacle Investments Inc now owns 1,329 shares of the financial services provider's stock worth $38,000 after purchasing an additional 577 shares during the last quarter. 67.31% of the stock is currently owned by institutional investors and hedge funds.

Home BancShares Price Performance

Shares of NYSE:HOMB opened at $29.70 on Friday. The business's fifty day moving average price is $29.97 and its two-hundred day moving average price is $28.23. The stock has a market cap of $5.94 billion, a PE ratio of 12.27 and a beta of 0.69. The company has a debt-to-equity ratio of 0.16, a quick ratio of 0.92 and a current ratio of 0.92. Home BancShares, Inc. has a one year low of $25.50 and a one year high of $31.70.

Home BancShares (NYSE:HOMB - Get Free Report) last released its quarterly earnings results on Wednesday, July 15th. The financial services provider reported $0.64 earnings per share for the quarter, topping analysts' consensus estimates of $0.62 by $0.02. Home BancShares had a return on equity of 11.12% and a net margin of 32.10%.The company had revenue of $295.10 million during the quarter, compared to analysts' expectations of $288.70 million. During the same period in the previous year, the firm posted $0.58 earnings per share. The business's revenue for the quarter was up 8.9% compared to the same quarter last year. On average, analysts forecast that Home BancShares, Inc. will post 2.51 EPS for the current fiscal year.

Home BancShares Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 2nd. Investors of record on Wednesday, August 12th will be paid a $0.23 dividend. This represents a $0.92 annualized dividend and a yield of 3.1%. The ex-dividend date of this dividend is Wednesday, August 12th. This is a positive change from Home BancShares's previous quarterly dividend of $0.21. Home BancShares's dividend payout ratio is presently 38.02%.

Analyst Ratings Changes

HOMB has been the topic of several research reports. Cantor Fitzgerald reissued an "overweight" rating and issued a $31.00 target price (up from $30.00) on shares of Home BancShares in a report on Wednesday, August 19th. Keefe, Bruyette & Woods boosted their price objective on shares of Home BancShares from $30.00 to $32.00 and gave the stock a "market perform" rating in a research report on Friday, July 17th. Benchmark assumed coverage on shares of Home BancShares in a research note on Wednesday, June 24th. They issued a "hold" rating on the stock. Wall Street Zen upgraded shares of Home BancShares from a "sell" rating to a "hold" rating in a report on Sunday, August 16th. Finally, Piper Sandler restated an "overweight" rating and set a $36.00 target price (up from $33.00) on shares of Home BancShares in a report on Friday, July 17th. Four equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $32.83.

Insiders Place Their Bets

In other Home BancShares news, CEO John Stephen Tipton sold 12,000 shares of the company's stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $31.59, for a total value of $379,080.00. Following the transaction, the chief executive officer directly owned 76,308 shares in the company, valued at approximately $2,410,569.72. This represents a 13.59% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 6.39% of the company's stock.

Home BancShares 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.

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