Home BancShares (NYSE:HOMB) Sets New 52-Week Low - Here's Why

Key Points

• Home BancShares hit a new 52-week low, trading as low as $25.67 and closing around $25.75, down about 2% on the day. The stock has also been pressured by a weaker technical setup, with its 50-day and 200-day moving averages above the current price.
• Analyst sentiment has turned mixed to cautious, with recent downgrades and lower price targets from several firms. The consensus rating remains “Moderate Buy,” but the average target price of $31.40 suggests meaningful upside from current levels.
• Recent fundamentals and shareholder returns were steady, as the company matched quarterly EPS estimates of $0.60 and announced a $0.21 quarterly dividend. Insider activity was mixed, with a director selling shares earlier and the CEO later buying 100,000 shares.

Home BancShares, Inc. (NYSE:HOMB - Get Free Report) hit a new 52-week low during trading on Wednesday . The stock traded as low as $25.67 and last traded at $25.7530, with a volume of 571606 shares. The stock had previously closed at $26.28.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on the stock. Wall Street Zen lowered shares of Home BancShares from a "hold" rating to a "sell" rating in a report on Saturday, April 18th. Piper Sandler set a $33.00 target price on shares of Home BancShares and gave the stock an "overweight" rating in a research note on Friday, April 17th. Zacks Research downgraded shares of Home BancShares from a "strong-buy" rating to a "hold" rating in a report on Monday, March 16th. Keefe, Bruyette & Woods dropped their price target on Home BancShares from $32.00 to $30.00 and set a "market perform" rating for the company in a research note on Monday, April 20th. Finally, Cantor Fitzgerald cut their price objective on Home BancShares from $32.00 to $31.00 and set a "neutral" rating on the stock in a report on Tuesday, March 3rd. Three investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $31.40.

Home BancShares Trading Down 2.0%

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 $5.19 billion, a price-to-earnings ratio of 10.59 and a beta of 0.69. The firm's 50-day moving average is $26.96 and its 200 day moving average is $27.84.

Home BancShares (NYSE:HOMB - Get Free Report) last released its quarterly earnings results on Wednesday, April 15th. The financial services provider reported $0.60 earnings per share (EPS) for the quarter, meeting the consensus estimate 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 during the quarter, compared to the consensus estimate of $274.06 million. During the same quarter last year, the firm earned $0.56 earnings per share. The company's revenue for the quarter was up 2.5% on a year-over-year basis. On average, equities analysts predict that Home BancShares, Inc. will post 2.48 earnings per share for the current fiscal year.

Home BancShares Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, June 3rd. Shareholders of record on Wednesday, May 13th will be given a $0.21 dividend. This represents a $0.84 dividend on an annualized basis and a dividend yield of 3.3%. The ex-dividend date is Wednesday, May 13th. Home BancShares's payout ratio is 34.57%.

Insider Activity

In other news, Director John W. Allison II sold 5,000 shares of the firm's stock in a transaction dated Monday, February 23rd. The stock was sold at an average price of $28.19, for a total transaction of $140,950.00. Following the completion of the transaction, the director directly owned 651,995 shares in the company, valued at $18,379,739.05. This trade represents a 0.76% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO John W. Allison bought 100,000 shares of Home BancShares stock in a transaction that occurred on Friday, April 17th. The stock was bought at an average price of $26.96 per share, for a total transaction of $2,696,000.00. Following the completion of the acquisition, the chief executive officer directly owned 5,798,926 shares of the company's stock, valued at $156,339,044.96. The trade was a 1.75% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders own 6.39% of the company's stock.

Institutional Investors Weigh In On Home BancShares

A number of institutional investors have recently modified their holdings of HOMB. Norges Bank bought a new position in Home BancShares during the fourth quarter worth $66,673,000. First Trust Advisors LP boosted its position in Home BancShares by 37.3% during the fourth quarter. First Trust Advisors LP now owns 3,060,888 shares of the financial services provider's stock valued at $85,031,000 after acquiring an additional 830,823 shares during the last quarter. Vanguard Group Inc. boosted its position in 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 valued at $567,372,000 after acquiring an additional 621,751 shares during the last quarter. Dimensional Fund Advisors LP grew its holdings in 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 acquiring an additional 559,603 shares during the period. Finally, AQR Capital Management LLC raised its position in shares of Home BancShares by 82.9% in the 3rd quarter. AQR Capital Management LLC now owns 1,120,706 shares of the financial services provider's stock worth $31,716,000 after acquiring an additional 508,127 shares in the last quarter. 67.31% of the stock is owned by institutional investors.

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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