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

Key Points

• Home BancShares has been downgraded from a "hold" rating to a "sell" rating by Wall Street Zen, reflecting a negative outlook from analysts.
• Despite the downgrade, Piper Sandler has increased its target price for the stock from $34.00 to $35.00, maintaining an "overweight" rating.
• Home BancShares reported a 6.5% year-over-year revenue increase, achieving earnings per share of $0.58, matching analyst estimates.

Wall Street Zen lowered shares of Home BancShares (NYSE:HOMB - Free Report) from a hold rating to a sell rating in a research note published on Saturday.

Other equities analysts have also recently issued reports about the company. Piper Sandler increased their price target on Home BancShares from $34.00 to $35.00 and gave the stock an "overweight" rating in a report on Friday, July 18th. Stephens reiterated an "overweight" rating and set a $33.00 price target on shares of Home BancShares in a report on Monday, April 21st. Royal Bank Of Canada lowered their price target on Home BancShares from $33.00 to $31.00 and set a "sector perform" rating for the company in a report on Monday, April 21st. Finally, Keefe, Bruyette & Woods increased their price target on Home BancShares from $30.00 to $32.00 and gave the stock a "market perform" rating in a report on Monday, July 21st. Three research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, Home BancShares has an average rating of "Moderate Buy" and an average target price of $33.20.

Home BancShares Trading Up 0.3%

NYSE HOMB traded up $0.0950 on Friday, reaching $28.7650. 750,666 shares of the company were exchanged, compared to its average volume of 862,896. The business's fifty day moving average price is $28.62 and its 200 day moving average price is $28.46. The stock has a market capitalization of $5.67 billion, a P/E ratio of 13.13 and a beta of 0.78. The company has a current ratio of 0.90, a quick ratio of 0.90 and a debt-to-equity ratio of 0.24. Home BancShares has a fifty-two week low of $24.22 and a fifty-two week high of $32.90.

Home BancShares (NYSE:HOMB - Get Free Report) last released its quarterly earnings data on Wednesday, July 16th. The financial services provider reported $0.58 earnings per share for the quarter, hitting analysts' consensus estimates of $0.58. The company had revenue of $271.03 million for the quarter, compared to analyst estimates of $262.56 million. Home BancShares had a return on equity of 10.60% and a net margin of 29.58%.The firm's revenue for the quarter was up 6.5% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.52 earnings per share. Analysts forecast that Home BancShares will post 2.19 earnings per share for the current year.

Home BancShares Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 3rd. Investors of record on Wednesday, August 13th will be issued a $0.20 dividend. This represents a $0.80 annualized dividend and a dividend yield of 2.8%. The ex-dividend date is Wednesday, August 13th. Home BancShares's payout ratio is currently 36.53%.

Insider Activity

In related news, CEO John Stephen Tipton sold 24,159 shares of the business's stock in a transaction on Friday, June 20th. The stock was sold at an average price of $27.52, for a total value of $664,855.68. Following the sale, the chief executive officer owned 53,308 shares in the company, valued at approximately $1,467,036.16. The trade was a 31.19% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 6.30% of the company's stock.

Institutional Investors Weigh In On Home BancShares

Several institutional investors and hedge funds have recently modified their holdings of HOMB. Binnacle Investments Inc raised its holdings in shares of Home BancShares by 76.7% in the 2nd quarter. Binnacle Investments Inc now owns 1,329 shares of the financial services provider's stock valued at $38,000 after buying an additional 577 shares during the period. BI Asset Management Fondsmaeglerselskab A S purchased a new stake in shares of Home BancShares in the 1st quarter valued at $39,000. Summit Securities Group LLC purchased a new stake in shares of Home BancShares in the 1st quarter valued at $64,000. GAMMA Investing LLC increased its holdings in Home BancShares by 60.8% during the 1st quarter. GAMMA Investing LLC now owns 2,632 shares of the financial services provider's stock worth $74,000 after purchasing an additional 995 shares during the period. Finally, UMB Bank n.a. increased its holdings in Home BancShares by 32.4% during the 1st quarter. UMB Bank n.a. now owns 2,646 shares of the financial services provider's stock worth $75,000 after purchasing an additional 647 shares during the period. Hedge funds and other institutional investors own 67.31% of the company's stock.

Home BancShares Company Profile

Home Bancshares, Inc (Conway, AR) operates as the bank holding company for Centennial Bank that provides commercial and retail banking, and related financial services to businesses, real estate developers and investors, individuals, and municipalities. Its deposit products include checking, savings, and money market accounts, as well as certificates of deposit.