Home BancShares, Inc. (NYSE:HOMB) Receives Average Rating of "Hold" from Analysts

Key Points

• Analyst sentiment is neutral: Home BancShares has an average “Hold” rating from eight analysts, with five holds and three buys. The average 12-month price target is $32.67, modestly above the reported $31.44 share price.
• The company outperformed quarterly expectations, reporting earnings of $0.64 per share versus the $0.62 consensus and revenue of $295.1 million versus $288.7 million expected. Revenue increased 8.9% year over year.
• Home BancShares raised its quarterly dividend to $0.23 per share from $0.21, representing an annualized dividend of $0.92 and a 2.9% yield; institutional investors own 67.31% of the stock.

Shares of Home BancShares, Inc. (NYSE:HOMB - Get Free Report) have been assigned an average recommendation of "Hold" from the eight analysts that are covering the firm, MarketBeat.com reports. Five equities research analysts have rated the stock with a hold rating and three have given a buy rating to the company. The average twelve-month price target among brokers that have covered the stock in the last year is $32.6667.

Several equities research analysts have recently commented on HOMB shares. Weiss Ratings upgraded Home BancShares from a "buy (b-)" rating to a "buy (b)" rating in a research note on Wednesday, August 5th. Wall Street Zen lowered shares of Home BancShares from a "hold" rating to a "sell" rating in a research report on Saturday, August 8th. Piper Sandler reissued an "overweight" rating and issued a $36.00 price objective (up from $33.00) on shares of Home BancShares in a research note on Friday, July 17th. Citigroup restated a "neutral" rating and set a $32.00 price objective (up from $29.00) on shares of Home BancShares in a research report on Tuesday, July 21st. Finally, Keefe, Bruyette & Woods raised their target price on shares of Home BancShares from $30.00 to $32.00 and gave the stock a "market perform" rating in a research note on Friday, July 17th.

Insider Transactions at Home BancShares

In related news, CEO John Stephen Tipton sold 12,000 shares of the firm'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 completion of the sale, the chief executive officer owned 76,308 shares in the company, valued at $2,410,569.72. This trade represents a 13.59% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 6.39% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Home BancShares

Several institutional investors and hedge funds have recently added to or reduced their stakes in HOMB. Millennium Capital Advisors LLC acquired a new position in Home BancShares during the fourth quarter worth $1,450,000. Vanguard Group Inc. raised its position in Home BancShares by 3.1% in the fourth quarter. Vanguard Group Inc. now owns 20,423,768 shares of the financial services provider's stock worth $567,372,000 after acquiring an additional 621,751 shares in the last quarter. Norges Bank acquired a new stake in Home BancShares in the fourth quarter valued at $66,673,000. Capital Research Global Investors lifted its holdings in Home BancShares by 4.5% in the fourth quarter. Capital Research Global Investors now owns 5,588,267 shares of the financial services provider's stock valued at $155,242,000 after acquiring an additional 238,548 shares during the period. Finally, Dimensional Fund Advisors LP boosted its position in shares of Home BancShares by 9.1% during the 1st quarter. Dimensional Fund Advisors LP now owns 6,720,491 shares of the financial services provider's stock worth $180,979,000 after purchasing an additional 559,603 shares in the last quarter. Institutional investors and hedge funds own 67.31% of the company's stock.

Home BancShares Stock Performance

Shares of HOMB stock opened at $31.44 on Friday. The stock has a market capitalization of $6.29 billion, a PE ratio of 12.99 and a beta of 0.69. Home BancShares has a 52-week low of $25.50 and a 52-week high of $31.70. The stock's 50-day moving average price is $29.50 and its 200 day moving average price is $28.17. The company has a quick ratio of 0.92, a current ratio of 0.92 and a debt-to-equity ratio of 0.16.

Home BancShares (NYSE:HOMB - Get Free Report) last posted its quarterly earnings data 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 last year, the firm earned $0.58 EPS. The firm's revenue for the quarter was up 8.9% on a year-over-year basis. As a group, equities research analysts forecast that Home BancShares will post 2.51 EPS for the current year.

Home BancShares Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 2nd. Investors of record on Wednesday, August 12th will be issued a dividend of $0.23 per share. This is an increase from Home BancShares's previous quarterly dividend of $0.21. This represents a $0.92 annualized dividend and a yield of 2.9%. The ex-dividend date of this dividend is Wednesday, August 12th. Home BancShares's dividend payout ratio is currently 38.02%.

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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