Norges Bank Buys Shares of 2,400,030 Home BancShares, Inc. $HOMB

Key Points

• Norges Bank opened a new position in Home BancShares, buying 2,400,030 shares valued at about $66.7 million, which gave it roughly 1.22% ownership of the company.
• Analyst sentiment on HOMB is mixed but mostly cautious: the consensus rating is “Hold,” with a consensus price target of $31.20 after several firms trimmed their targets.
• Home BancShares reported quarterly EPS of $0.60, matching estimates, and also paid a quarterly dividend of $0.21 per share, equal to a 3.1% annualized yield.

Norges Bank bought a new stake in shares of Home BancShares, Inc. (NYSE:HOMB - Free Report) in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor bought 2,400,030 shares of the financial services provider's stock, valued at approximately $66,673,000. Norges Bank owned about 1.22% of Home BancShares at the end of the most recent reporting period.

Other hedge funds have also made changes to their positions in the company. Covestor Ltd increased its holdings in shares of Home BancShares by 110.6% in the fourth 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 during the last quarter. Binnacle Investments Inc increased its holdings in shares of Home BancShares by 76.7% in the second quarter. Binnacle Investments Inc now owns 1,329 shares of the financial services provider's stock valued at $38,000 after purchasing an additional 577 shares during the last quarter. Torren Management LLC acquired a new stake in shares of Home BancShares in the fourth quarter valued at approximately $49,000. Danske Bank A S acquired a new stake in shares of Home BancShares in the third quarter valued at approximately $57,000. Finally, Eurizon Capital SGR S.p.A. acquired a new stake in shares of Home BancShares in the fourth quarter valued at approximately $58,000. Institutional investors and hedge funds own 67.31% of the company's stock.

Wall Street Analyst Weigh In

Several research firms recently commented on HOMB. Stephens cut their price target on Home BancShares from $34.00 to $32.00 and set an "overweight" rating for the company in a report on Friday, April 17th. Piper Sandler set a $33.00 price target on Home BancShares and gave the company an "overweight" rating in a report on Friday, April 17th. Keefe, Bruyette & Woods cut their price target on Home BancShares from $32.00 to $30.00 and set a "market perform" rating for the company in a report on Monday, April 20th. Cantor Fitzgerald reaffirmed a "neutral" rating and issued a $30.00 price target (down from $31.00) on shares of Home BancShares in a report on Tuesday, May 19th. Finally, Wall Street Zen cut Home BancShares from a "hold" rating to a "sell" rating in a report on Saturday, April 18th. Two investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $31.20.

Insider Activity at Home BancShares

In related news, CAO Jennifer C. Floyd sold 3,000 shares of the stock in a transaction that occurred on Tuesday, April 21st. The stock was sold at an average price of $27.11, for a total value of $81,330.00. Following the completion of the transaction, the chief accounting officer directly owned 4,635 shares in the company, valued at approximately $125,654.85. This represents a 39.29% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO John W. Allison acquired 100,000 shares of the stock in a transaction that occurred on Friday, April 17th. The stock was acquired at an average price of $26.96 per share, with a total value of $2,696,000.00. Following the completion of the transaction, the chief executive officer directly 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 SEC filing for this purchase provides additional information. Corporate insiders own 6.39% of the company's stock.

Home BancShares Trading Up 1.1%

Shares of Home BancShares stock opened at $27.14 on Friday. The firm has a market capitalization of $5.47 billion, a price-to-earnings ratio of 11.17 and a beta of 0.68. Home BancShares, Inc. has a fifty-two week low of $25.50 and a fifty-two week high of $30.83. The company has a debt-to-equity ratio of 0.18, a quick ratio of 0.92 and a current ratio of 0.92. The stock has a 50 day moving average of $26.85 and a 200 day moving average of $27.75.

Home BancShares (NYSE:HOMB - Get Free Report) last issued its quarterly earnings data on Wednesday, April 15th. The financial services provider reported $0.60 earnings per share for the quarter, hitting the consensus estimate of $0.60. The company had revenue of $266.71 million during the quarter, compared to analyst estimates of $274.06 million. Home BancShares had a return on equity of 11.11% and a net margin of 32.48%.The firm's revenue for the quarter was up 2.5% compared to the same quarter last year. During the same period in the prior year, the business posted $0.56 earnings per share. As a group, research analysts predict that Home BancShares, Inc. will post 2.48 earnings per share for the current year.

Home BancShares Announces Dividend

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

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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