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

Key Points

• Analyst sentiment is mixed but cautious: Home BancShares has an average broker rating of “Hold” from six analysts, with a consensus 12-month price target of $31.20.
• Insider trading showed both buying and selling: CEO John W. Allison bought 100,000 shares at $26.96, while CAO Jennifer C. Floyd sold 3,000 shares at $27.11.
• The company reported steady earnings and a dividend: Quarterly EPS came in at $0.60, matching estimates, and Home BancShares announced a $0.21 quarterly dividend yielding about 3.1%.

Shares of Home BancShares, Inc. (NYSE:HOMB - Get Free Report) have been assigned an average rating of "Hold" from the six analysts that are currently covering the company, Marketbeat Ratings reports. Four research analysts have rated the stock with a hold rating and two have issued a buy rating on the company. The average twelve-month price objective among brokerages that have covered the stock in the last year is $31.20.

Several brokerages have recently commented on HOMB. Piper Sandler set a $33.00 target price on shares of Home BancShares and gave the company an "overweight" rating in a report on Friday, April 17th. Keefe, Bruyette & Woods lowered their target price on shares of 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 reiterated a "neutral" rating and issued a $30.00 target price (down from $31.00) on shares of Home BancShares in a report on Tuesday, May 19th. Weiss Ratings downgraded shares of Home BancShares from a "buy (b-)" rating to a "hold (c+)" rating in a report on Tuesday, May 26th. Finally, Stephens lowered their target price on shares of Home BancShares from $34.00 to $32.00 and set an "overweight" rating for the company in a report on Friday, April 17th.

Insider Activity

In other Home BancShares news, CAO Jennifer C. Floyd sold 3,000 shares of Home BancShares stock in a transaction dated Tuesday, April 21st. The shares were sold at an average price of $27.11, for a total value of $81,330.00. Following the sale, the chief accounting officer owned 4,635 shares of the company's stock, valued at approximately $125,654.85. The trade was 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 bought 100,000 shares of Home BancShares stock in a transaction dated 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 purchase, the chief executive officer directly owned 5,798,926 shares of the company's stock, valued at approximately $156,339,044.96. This represents a 1.75% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Corporate insiders own 6.39% of the company's stock.

Hedge Funds Weigh In On Home BancShares

Several large investors have recently modified their holdings of the business. Vanguard Group Inc. increased its holdings in shares of 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 purchasing an additional 621,751 shares during the period. Dimensional Fund Advisors LP increased its position in shares of Home BancShares by 9.1% in the first 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 during the last quarter. Capital Research Global Investors increased its position in shares of 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 worth $155,242,000 after purchasing an additional 238,548 shares during the last quarter. First Trust Advisors LP increased its position in shares of Home BancShares by 13.4% in the first quarter. First Trust Advisors LP now owns 3,471,607 shares of the financial services provider's stock worth $93,490,000 after purchasing an additional 410,719 shares during the last quarter. Finally, Nuveen LLC lifted its position in Home BancShares by 8.4% during the fourth quarter. Nuveen LLC now owns 2,776,469 shares of the financial services provider's stock valued at $77,130,000 after purchasing an additional 215,940 shares during the last quarter. Hedge funds and other institutional investors own 67.31% of the company's stock.

Home BancShares Stock Down 0.1%

Home BancShares stock opened at $26.73 on Monday. Home BancShares has a 1-year low of $25.50 and a 1-year high of $30.83. The firm has a market capitalization of $5.38 billion, a price-to-earnings ratio of 11.00 and a beta of 0.68. The firm's fifty day moving average price is $26.82 and its two-hundred day moving average price is $27.77. The company has a current ratio of 0.92, a quick ratio of 0.92 and a debt-to-equity ratio of 0.18.

Home BancShares (NYSE:HOMB - Get Free Report) last released its quarterly earnings data on Wednesday, April 15th. The financial services provider reported $0.60 earnings per share for the quarter, meeting analysts' consensus estimates 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 earnings per share. The business's quarterly revenue was up 2.5% compared to the same quarter last year. On average, equities research analysts predict that Home BancShares will post 2.48 earnings per share for the current fiscal year.

Home BancShares Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, June 3rd. Stockholders of record on Wednesday, May 13th will be issued a $0.21 dividend. The ex-dividend date is Wednesday, May 13th. This represents a $0.84 annualized dividend and a dividend yield of 3.1%. Home BancShares's dividend payout ratio is currently 34.57%.

Home BancShares Company 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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