Home BancShares (NYSE:HOMB) Reaches New 1-Year High - Here's Why

Key Points

• Home BancShares hit a new 52-week high, trading as high as $31.24 after strong recent momentum and a stock price above both its 50-day and 200-day moving averages.
• The company’s latest earnings beat expectations, with $0.64 EPS versus $0.62 expected and revenue of $295.1 million, up 8.9% from a year ago.
• Home BancShares also raised its quarterly dividend to $0.23 per share from $0.21, while analysts currently have a consensus Hold rating and an average price target of $32.67.

Shares of Home BancShares, Inc. (NYSE:HOMB - Get Free Report) hit a new 52-week high during mid-day trading on Friday . The stock traded as high as $31.24 and last traded at $31.1730, with a volume of 375174 shares changing hands. The stock had previously closed at $30.73.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on the company. Citigroup reaffirmed 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. Benchmark initiated coverage on Home BancShares in a research note on Wednesday, June 24th. They set a "hold" rating for the company. Wall Street Zen downgraded Home BancShares from a "hold" rating to a "sell" rating in a report on Saturday, April 18th. 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. Finally, Stephens upped their price objective on shares of Home BancShares from $32.00 to $35.00 and gave the stock an "overweight" rating in a research report on Friday, July 17th. Three research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $32.67.

Home BancShares Stock Performance

The stock's 50 day moving average price is $28.03 and its two-hundred day moving average price is $27.89. The company has a current ratio of 0.92, a quick ratio of 0.92 and a debt-to-equity ratio of 0.18. The firm has a market capitalization of $6.28 billion, a price-to-earnings ratio of 12.88 and a beta of 0.68.

Home BancShares (NYSE:HOMB - Get Free Report) last announced its quarterly earnings data on Wednesday, July 15th. The financial services provider reported $0.64 EPS for the quarter, beating the consensus estimate of $0.62 by $0.02. Home BancShares had a net margin of 32.10% and a return on equity of 11.25%. The firm had revenue of $295.10 million during the quarter, compared to analysts' expectations of $288.70 million. During the same quarter last year, the business earned $0.58 earnings per share. The business's revenue for the quarter was up 8.9% compared to the same quarter last year. On average, analysts forecast that Home BancShares, Inc. 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. Stockholders of record on Wednesday, August 12th will be paid a dividend of $0.23 per share. This is a positive change from Home BancShares's previous quarterly dividend of $0.21. The ex-dividend date of this dividend is Wednesday, August 12th. This represents a $0.92 annualized dividend and a dividend yield of 3.0%. Home BancShares's dividend payout ratio is presently 34.71%.

Hedge Funds Weigh In On Home BancShares

Hedge funds have recently bought and sold shares of the company. Root Financial Partners LLC grew its holdings in Home BancShares by 76.9% in the first quarter. Root Financial Partners LLC now owns 1,090 shares of the financial services provider's stock valued at $29,000 after purchasing an additional 474 shares during the last quarter. CIBC Private Wealth Group LLC boosted its position in shares of Home BancShares by 164.8% in the 4th quarter. CIBC Private Wealth Group LLC now owns 1,083 shares of the financial services provider's stock worth $30,000 after buying an additional 674 shares in the last quarter. Kestra Advisory Services LLC acquired a new stake in Home BancShares in the 4th quarter valued at about $36,000. Covestor Ltd increased its holdings in Home BancShares by 110.6% during the 4th quarter. Covestor Ltd now owns 1,327 shares of the financial services provider's stock valued at $37,000 after acquiring an additional 697 shares in the last quarter. Finally, Binnacle Investments Inc increased its holdings in Home BancShares by 76.7% during the 2nd quarter. Binnacle Investments Inc now owns 1,329 shares of the financial services provider's stock valued at $38,000 after acquiring an additional 577 shares in the last quarter. 67.31% of the stock is owned by hedge funds and other institutional investors.

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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