Home BancShares (NYSE:HOMB) Releases Earnings Results, Beats Estimates By $0.02 EPS

Home BancShares (NYSE:HOMB) released its quarterly earnings data on Wednesday. The financial services provider reported $0.64 EPS for the quarter, topping the consensus estimate of $0.62 by $0.02, FiscalAI reports. The firm had revenue of $295.10 million for the quarter, compared to the consensus estimate of $288.70 million. Home BancShares had a return on equity of 11.11% and a net margin of 32.48%.The company’s quarterly revenue was up 8.9% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.58 earnings per share.

Home BancShares Price Performance

Shares of NYSE HOMB opened at $29.28 on Thursday. Home BancShares has a fifty-two week low of $25.50 and a fifty-two week high of $30.83. The company has a 50 day simple moving average of $27.52 and a two-hundred day simple moving average of $27.78. The company has a market capitalization of $5.90 billion, a price-to-earnings ratio of 12.05 and a beta of 0.68. The company has a debt-to-equity ratio of 0.18, a quick ratio of 0.92 and a current ratio of 0.92.

Home BancShares Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, June 3rd. Shareholders of record on Wednesday, May 13th were issued a $0.21 dividend. This represents a $0.84 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date was Wednesday, May 13th. Home BancShares’s dividend payout ratio is 34.57%.

Key Stories Impacting Home BancShares

Here are the key news stories impacting Home BancShares this week:

• Positive Sentiment: Home BancShares beat analyst estimates with Q2 EPS of $0.64 versus the $0.62 consensus, and revenue rose 8.9% year over year. Article Title
• Positive Sentiment: The company reported record total revenue of $295.1 million and record adjusted net income of $128.1 million, helped by stronger net interest income and the recently completed Mountain Commerce Bancorp acquisition. Article Title
• Positive Sentiment: Book value per share reached a record $22.68, tangible book value per share rose to $15.32, and the bank increased share repurchases, which can support shareholder returns. Article Title
• Neutral Sentiment: Some efficiency and credit metrics softened versus the prior quarter, including a higher efficiency ratio and lower ROA, but management said these were largely tied to merger-related costs. Article Title

Wall Street Analyst Weigh In

HOMB has been the subject of several analyst reports. Keefe, Bruyette & Woods dropped their target price on Home BancShares from $32.00 to $30.00 and set a “market perform” rating for the company in a report on Monday, April 20th. Wall Street Zen cut Home BancShares from a “hold” rating to a “sell” rating in a research note on Saturday, April 18th. Benchmark initiated coverage on Home BancShares in a research report on Wednesday, June 24th. They issued a “hold” rating for the company. Weiss Ratings downgraded Home BancShares from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Tuesday, May 26th. Finally, Stephens dropped their price objective on Home BancShares from $34.00 to $32.00 and set an “overweight” rating for the company in a research note on Friday, April 17th. Two investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $31.20.

Insider Activity at Home BancShares

In related news, CEO John W. Allison purchased 100,000 shares of the company’s stock in a transaction dated Friday, April 17th. The shares were purchased at an average cost of $26.96 per share, with a total value of $2,696,000.00. Following the transaction, the chief executive officer directly owned 5,798,926 shares in the company, valued at $156,339,044.96. This trade represents a 1.75% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CAO Jennifer C. Floyd sold 3,000 shares of the company’s stock in a transaction that occurred on Tuesday, April 21st. The stock was sold at an average price of $27.11, for a total value of $81,330.00. Following the completion of the sale, the chief accounting officer owned 4,635 shares in the company, valued at $125,654.85. The trade was a 39.29% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 6.39% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Home BancShares

Several institutional investors and hedge funds have recently modified their holdings of HOMB. First Trust Advisors LP grew its position in Home BancShares by 37.3% during the 4th quarter. First Trust Advisors LP now owns 3,060,888 shares of the financial services provider’s stock valued at $85,031,000 after purchasing an additional 830,823 shares during the last quarter. AQR Capital Management LLC raised its holdings in 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 during the last quarter. Cubist Systematic Strategies LLC bought a new position in Home BancShares in the 2nd quarter valued at approximately $12,931,000. Bank of America Corp DE lifted its position in Home BancShares by 68.9% in the 3rd quarter. Bank of America Corp DE now owns 845,914 shares of the financial services provider’s stock valued at $23,939,000 after acquiring an additional 345,027 shares in the last quarter. Finally, Voloridge Investment Management LLC boosted its stake in Home BancShares by 121.1% during the 4th quarter. Voloridge Investment Management LLC now owns 584,970 shares of the financial services provider’s stock valued at $16,250,000 after purchasing an additional 320,433 shares during the last quarter. 67.31% of the stock is currently 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.