Hsbc Holdings PLC Acquires Shares of 161,378 Home BancShares, Inc. $HOMB

Key Points

• HSBC Holdings acquired 161,378 shares of Home BancShares during the second quarter, valued at approximately $4.63 million and representing about 0.08% of the company. Institutional investors collectively own 67.31% of HOMB.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $32.83; Piper Sandler and Stephens recently raised their targets to $36 and $35, respectively.
• Home BancShares exceeded quarterly earnings expectations, reporting $0.64 EPS and $295.1 million in revenue, while revenue rose 8.9% year over year. The company also increased its quarterly dividend to $0.23, implying a 3.1% annualized yield.

Hsbc Holdings PLC acquired a new stake in Home BancShares, Inc. (NYSE:HOMB - Free Report) during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm acquired 161,378 shares of the financial services provider's stock, valued at approximately $4,628,000. Hsbc Holdings PLC owned approximately 0.08% of Home BancShares at the end of the most recent quarter.

Several other institutional investors have also modified their holdings of the company. Ancora Advisors LLC purchased a new position in Home BancShares in the second quarter valued at $45,000. Legal & General Group Plc acquired a new stake in Home BancShares in the second quarter valued at $7,198,000. The Manufacturers Life Insurance Company purchased a new stake in Home BancShares during the 2nd quarter worth about $5,092,000. Connor Clark & Lunn Investment Management Ltd. purchased a new stake in Home BancShares during the 2nd quarter worth about $2,226,000. Finally, Elevation Point Wealth Partners LLC acquired a new position in shares of Home BancShares during the 2nd quarter worth about $354,000. 67.31% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on the company. Piper Sandler reissued an "overweight" rating and set a $36.00 target price (up from $33.00) on shares of Home BancShares in a research report on Friday, July 17th. Stephens upped their price target on Home BancShares from $32.00 to $35.00 and gave the company an "overweight" rating in a report on Friday, July 17th. Weiss Ratings upgraded shares of Home BancShares from a "buy (b-)" rating to a "buy (b)" rating in a research note on Wednesday, August 5th. Benchmark started coverage on shares of Home BancShares in a report on Wednesday, June 24th. They set a "hold" rating on the stock. Finally, Wall Street Zen upgraded shares of Home BancShares from a "sell" rating to a "hold" rating in a research report on Sunday, August 16th. Four investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat, Home BancShares has an average rating of "Moderate Buy" and a consensus target price of $32.83.

Home BancShares Stock Down 0.0%

HOMB opened at $29.66 on Friday. The business's 50-day simple moving average is $30.01 and its 200-day simple moving average is $28.24. 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. The stock has a market capitalization of $5.93 billion, a P/E ratio of 12.26 and a beta of 0.69.

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

Home BancShares Increases Dividend

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

Insider Buying and Selling at Home BancShares

In other news, CEO John Stephen 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 transaction, 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 sale was disclosed in a legal filing with the SEC, which is accessible through this link. 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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