Home BancShares (NYSE:HOMB) Reaches New 52-Week High Following Better-Than-Expected Earnings

Home BancShares, Inc. (NYSE:HOMB)’s stock price hit a new 52-week high during mid-day trading on Thursday following a stronger than expected earnings report. The company traded as high as $30.88 and last traded at $30.8150, with a volume of 2053551 shares traded. The stock had previously closed at $29.29.

The financial services provider reported $0.64 EPS for the quarter, topping analysts’ consensus estimates of $0.62 by $0.02. The company 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 11.29% and a net margin of 32.10%.The company’s quarterly revenue was up 8.9% compared to the same quarter last year. During the same period last year, the business posted $0.58 EPS.

Home BancShares Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, June 3rd. Investors of record on Wednesday, May 13th were given a dividend of $0.21 per share. This represents a $0.84 dividend on an annualized basis and a yield of 2.7%. The ex-dividend date of this dividend was Wednesday, May 13th. Home BancShares’s dividend payout ratio is 34.71%.

Trending Headlines about Home BancShares

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

• Positive Sentiment: Second-quarter earnings beat expectations, with adjusted EPS of $0.64 versus the $0.62 consensus, signaling stronger profitability than analysts expected. Article Title
• Positive Sentiment: Revenue reached a record $295.1 million, above estimates, driven by a 5.8% sequential increase in net interest income and a 24.9% jump in non-interest income. Article Title
• Positive Sentiment: The Mountain Commerce acquisition added about $1.47 billion in loans and helped lift deposits and assets, reinforcing growth expectations for future quarters. Article Title
• Neutral Sentiment: Book value per share hit a record $22.68 and the company repurchased 1.5 million shares, which supports shareholder returns, but merger-related costs rose sharply. Article Title
• Neutral Sentiment: Efficiency ratio and ROA weakened versus the prior quarter because of $12.7 million in merger expenses, though management said adjusted operating metrics remained solid. Article Title

Analysts Set New Price Targets

HOMB has been the topic of a number of recent research reports. Keefe, Bruyette & Woods reduced their price target on shares of Home BancShares from $32.00 to $30.00 and set a “market perform” rating on the stock in a research report on Monday, April 20th. Weiss Ratings lowered shares of Home BancShares from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Tuesday, May 26th. Stephens cut their target price on shares of Home BancShares from $34.00 to $32.00 and set an “overweight” rating on the stock in a research note on Friday, April 17th. Piper Sandler set a $33.00 target price on shares of Home BancShares and gave the company an “overweight” rating in a report on Friday, April 17th. Finally, Benchmark initiated coverage on shares of Home BancShares in a research report on Wednesday, June 24th. They set a “hold” rating for the company. Two investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, Home BancShares has a consensus rating of “Hold” and a consensus price target of $31.20.

Insider Activity at Home BancShares

In related news, CAO Jennifer C. Floyd sold 3,000 shares of the firm’s stock in a transaction dated Tuesday, April 21st. The stock was sold at an average price of $27.11, for a total transaction of $81,330.00. Following the sale, the chief accounting officer directly owned 4,635 shares in the company, valued at approximately $125,654.85. This trade represents a 39.29% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Insiders own 6.39% of the company’s stock.

Hedge Funds Weigh In On Home BancShares

Institutional investors and hedge funds have recently bought and sold shares of the stock. Trust Point Inc. purchased a new stake in shares of Home BancShares during the second quarter valued at approximately $205,000. Kwmg LLC lifted its position in shares of Home BancShares by 2.6% during the second quarter. Kwmg LLC now owns 266,746 shares of the financial services provider’s stock worth $7,616,000 after purchasing an additional 6,820 shares in the last quarter. Apella Capital LLC lifted its position in shares of Home BancShares by 41.6% during the second quarter. Apella Capital LLC now owns 14,534 shares of the financial services provider’s stock worth $417,000 after purchasing an additional 4,273 shares in the last quarter. Versant Capital Management Inc boosted its stake in shares of Home BancShares by 153.3% in the second quarter. Versant Capital Management Inc now owns 1,857 shares of the financial services provider’s stock valued at $53,000 after purchasing an additional 1,124 shares during the period. Finally, Cim Investment Management Inc. boosted its stake in shares of Home BancShares by 41.3% in the first quarter. Cim Investment Management Inc. now owns 11,999 shares of the financial services provider’s stock valued at $323,000 after purchasing an additional 3,508 shares during the period. Hedge funds and other institutional investors own 67.31% of the company’s stock.

Home BancShares Stock Performance

The stock’s fifty day moving average is $27.59 and its two-hundred day moving average is $27.80. The firm has a market capitalization of $6.18 billion, a price-to-earnings ratio of 12.67 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.

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.