Home BancShares (NYSE:HOMB) Downgraded to "Sell" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Home BancShares to “Sell” from “Hold,” while the broader analyst consensus remains “Hold,” with an average price target of $32.67.
• Home BancShares reported better-than-expected quarterly results, posting $0.64 EPS and $295.1 million in revenue; revenue increased 8.9% year over year.
• The stock opened at $30.81, near its 52-week high of $31.70. CEO John Stephen Tipton sold 12,000 shares, while institutional investors own 67.31% of the company.

Home BancShares (NYSE:HOMB - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued to investors on Saturday.

A number of other analysts have also recently issued reports on the company. Stephens increased their price objective on Home BancShares from $32.00 to $35.00 and gave the stock an "overweight" rating in a report on Friday, July 17th. Piper Sandler reaffirmed 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. Citigroup reiterated a "neutral" rating and set a $32.00 price target (up from $29.00) on shares of Home BancShares in a research report on Tuesday, July 21st. Benchmark initiated coverage on shares of Home BancShares in a report on Wednesday, June 24th. They issued a "hold" rating on the stock. Finally, Keefe, Bruyette & Woods raised their price objective on shares of Home BancShares from $30.00 to $32.00 and gave the company a "market perform" rating in a research report on Friday, July 17th. Three investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, Home BancShares currently has a consensus rating of "Hold" and an average price target of $32.67.

Home BancShares Stock Down 0.1%

Home BancShares stock opened at $30.81 on Friday. The firm has a 50 day simple moving average of $29.05 and a 200 day simple moving average of $28.10. 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 has a 1-year low of $25.50 and a 1-year high of $31.70. The firm has a market capitalization of $6.21 billion, a price-to-earnings ratio of 12.73 and a beta of 0.69.

Home BancShares (NYSE:HOMB - Get Free Report) last posted its earnings results on Wednesday, July 15th. The financial services provider reported $0.64 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.62 by $0.02. Home BancShares had a return on equity of 11.25% and a net margin of 32.10%.The firm had revenue of $295.10 million for the quarter, compared to the consensus estimate of $288.70 million. During the same quarter in the prior year, the business posted $0.58 earnings per share. The business's quarterly revenue was up 8.9% on a year-over-year basis. On average, analysts predict that Home BancShares will post 2.51 earnings per share for the current year.

Insider Buying and Selling

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 stock was 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 $2,410,569.72. This represents a 13.59% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 6.39% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of HOMB. Millennium Capital Advisors LLC purchased a new stake in Home BancShares in the fourth quarter worth approximately $1,450,000. Vanguard Group Inc. raised its stake in shares of Home BancShares by 3.1% during 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 purchased a new position in shares of Home BancShares during the fourth quarter worth approximately $66,673,000. Capital Research Global Investors raised its stake in shares of Home BancShares by 4.5% during 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 acquiring an additional 238,548 shares in the last quarter. Finally, Dimensional Fund Advisors LP lifted its holdings in shares of Home BancShares by 9.1% in 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 acquiring an additional 559,603 shares during the last quarter. Hedge funds and other institutional investors own 67.31% of the company's stock.

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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