Home BancShares (NYSE:HOMB) Stock Cross Above 200 Day Moving Average - What's Next?

Key Points

• Home BancShares shares moved above their 200-day moving average, trading as high as $29.96 versus the $28.33 average, signaling improved technical momentum.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $33.00, supported by several recent upgrades and target increases.
• The company beat quarterly earnings and revenue expectations, while raising its quarterly dividend to $0.23 per share, equivalent to a 3.1% annualized yield.

Home BancShares, Inc. (NYSE:HOMB - Get Free Report) passed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $28.33 and traded as high as $29.96. Home BancShares shares last traded at $29.67, with a volume of 1,158,884 shares.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on HOMB. Weiss Ratings upgraded Home BancShares from a "buy (b-)" rating to a "buy (b)" rating in a research note on Wednesday, August 5th. Hovde Group started coverage on shares of Home BancShares in a research note on Tuesday, September 8th. They issued an "outperform" rating and a $34.00 price objective for the company. Stephens increased their target price on Home BancShares from $32.00 to $35.00 and gave the stock an "overweight" rating in a research report on Friday, July 17th. Cantor Fitzgerald reiterated an "overweight" rating and issued a $31.00 price target (up from $30.00) on shares of Home BancShares in a research report on Wednesday, August 19th. Finally, Keefe, Bruyette & Woods boosted their price objective on Home BancShares from $30.00 to $32.00 and gave the company a "market perform" rating in a research note on Friday, July 17th. Five research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $33.00.

Home BancShares Stock Performance

The company has a quick ratio of 0.92, a current ratio of 0.92 and a debt-to-equity ratio of 0.16. The company's 50-day moving average is $30.38 and its two-hundred day moving average is $28.33. The company has a market capitalization of $5.94 billion, a P/E ratio of 12.26 and a beta of 0.67.

Home BancShares (NYSE:HOMB - Get Free Report) last announced 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 net margin of 32.10% and a return on equity of 11.12%. The company had revenue of $295.10 million during the quarter, compared to analyst estimates of $288.70 million. During the same period in the previous year, the business earned $0.58 earnings per share. The firm's quarterly revenue was up 8.9% compared to the same quarter last year. Equities analysts anticipate that Home BancShares, Inc. will post 2.51 earnings per share for the current fiscal year.

Home BancShares Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, September 2nd. Stockholders of record on Wednesday, August 12th were paid a $0.23 dividend. This is a positive change from Home BancShares's previous quarterly dividend of $0.21. The ex-dividend date of this dividend was Wednesday, August 12th. This represents a $0.92 dividend on an annualized basis and a dividend yield of 3.1%. Home BancShares's dividend payout ratio is currently 38.02%.

Insider Activity at Home BancShares

In related news, CEO John Tipton sold 12,000 shares of the stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $31.59, for a total transaction of $379,080.00. Following the transaction, the chief executive officer owned 76,308 shares of the company's stock, valued at approximately $2,410,569.72. This trade represents a 13.59% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 6.39% of the company's stock.

Institutional Trading of Home BancShares

Several institutional investors have recently added to or reduced their stakes in HOMB. BlackRock Inc. purchased a new position in shares of Home BancShares in the second quarter valued at about $735,643,000. Dimensional Fund Advisors LP boosted its holdings in shares of Home BancShares by 9.1% during 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 period. Capital Research Global Investors grew its stake 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 grew its stake 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, Norges Bank purchased a new position in Home BancShares during the 4th quarter valued at about $66,673,000. 67.31% of the stock is currently owned by hedge funds and other institutional investors.

Home BancShares Company Profile

Home BancShares, Inc is a bank holding company headquartered in Conway, Arkansas. Its principal subsidiary, Centennial Bank, provides community banking services to individuals, businesses and institutional customers.

Centennial Bank offers a range of deposit products, including checking, savings, money market and certificate of deposit accounts, as well as commercial, residential mortgage, real estate, agricultural and consumer loans. The bank also provides treasury management, online and mobile banking, cash management and other financial services designed for business and retail customers.

Home BancShares was founded in 1998 and has grown through a combination of organic expansion and acquisitions.

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