Home Bancorp (NASDAQ:HBCP) Sees Large Volume Increase After Strong Earnings

Home Bancorp, Inc. (NASDAQ:HBCP) saw strong trading volume on Tuesday after the company announced better than expected quarterly earnings. Approximately 121,145 shares traded hands during mid-day trading, an increase of 38% from the previous session’s volume of 87,576 shares.The stock last traded at $68.8150 and had previously closed at $68.37.

The bank reported $1.48 EPS for the quarter, topping analysts’ consensus estimates of $1.46 by $0.02. Home Bancorp had a return on equity of 10.77% and a net margin of 22.23%.The company had revenue of $39.72 million during the quarter, compared to analysts’ expectations of $38.57 million.

Home Bancorp Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 14th. Shareholders of record on Monday, August 3rd will be given a $0.32 dividend. This is a boost from Home Bancorp’s previous quarterly dividend of $0.31. This represents a $1.28 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date is Monday, August 3rd. Home Bancorp’s dividend payout ratio (DPR) is presently 20.84%.

Key Stories Impacting Home Bancorp

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

• Positive Sentiment: Home Bancorp beat Wall Street expectations for Q2, posting $1.48 EPS versus $1.46 expected, and revenue of $39.72 million versus $38.57 million expected, suggesting better-than-anticipated profitability and top-line performance. Article Title
• Positive Sentiment: The company increased its quarterly dividend by 3% to $0.32 per share, which signals management confidence in cash generation and capital strength. Article Title
• Neutral Sentiment: Management’s earnings call and presentation highlighted growth and cleanup efforts, but the available headlines do not provide enough detail to indicate a clear additional catalyst beyond the earnings beat and dividend hike. Article Title

Analysts Set New Price Targets

A number of research firms have recently weighed in on HBCP. Hovde Group raised their price target on shares of Home Bancorp from $62.00 to $65.50 and gave the company a “market perform” rating in a research note on Wednesday, April 22nd. Weiss Ratings upgraded shares of Home Bancorp from a “buy (b+)” rating to a “buy (a-)” rating in a research report on Monday, May 4th. Piper Sandler downgraded shares of Home Bancorp from an “overweight” rating to a “neutral” rating and set a $69.00 price objective for the company. in a research note on Wednesday, April 22nd. Finally, Zacks Research lowered shares of Home Bancorp from a “strong-buy” rating to a “hold” rating in a research report on Monday, March 30th. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $65.50.

Insider Transactions at Home Bancorp

In other news, CFO David T. Kirkley sold 655 shares of Home Bancorp stock in a transaction dated Wednesday, May 13th. The stock was sold at an average price of $62.80, for a total transaction of $41,134.00. Following the sale, the chief financial officer directly owned 5,064 shares of the company’s stock, valued at approximately $318,019.20. This trade represents a 11.45% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, EVP Darren E. Guidry sold 1,600 shares of the business’s stock in a transaction dated Wednesday, April 29th. The stock was sold at an average price of $62.78, for a total value of $100,448.00. Following the sale, the executive vice president owned 18,530 shares in the company, valued at approximately $1,163,313.40. This trade represents a 7.95% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 5,653 shares of company stock worth $359,063 in the last 90 days. 6.20% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Hotchkis & Wiley Capital Management LLC boosted its position in Home Bancorp by 64.2% during the 3rd quarter. Hotchkis & Wiley Capital Management LLC now owns 119,053 shares of the bank’s stock worth $6,468,000 after buying an additional 46,546 shares during the period. Marshall Wace LLP increased its position in Home Bancorp by 636.7% in the 2nd quarter. Marshall Wace LLP now owns 42,027 shares of the bank’s stock valued at $2,176,000 after acquiring an additional 36,322 shares during the period. Arrowstreet Capital Limited Partnership raised its stake in shares of Home Bancorp by 668.5% during the second quarter. Arrowstreet Capital Limited Partnership now owns 38,040 shares of the bank’s stock valued at $1,970,000 after acquiring an additional 33,090 shares during the last quarter. AQR Capital Management LLC raised its stake in shares of Home Bancorp by 41.4% during the fourth quarter. AQR Capital Management LLC now owns 103,243 shares of the bank’s stock valued at $5,967,000 after acquiring an additional 30,224 shares during the last quarter. Finally, Qube Research & Technologies Ltd lifted its holdings in shares of Home Bancorp by 449.1% during the second quarter. Qube Research & Technologies Ltd now owns 33,306 shares of the bank’s stock worth $1,725,000 after purchasing an additional 27,240 shares during the period. Institutional investors own 49.41% of the company’s stock.

Home Bancorp Trading Up 0.6%

The company has a debt-to-equity ratio of 0.12, a current ratio of 0.98 and a quick ratio of 0.98. The company has a market cap of $539.39 million, a price-to-earnings ratio of 11.51 and a beta of 0.49. The business’s fifty day moving average price is $66.66 and its 200 day moving average price is $63.08.

Home Bancorp Company Profile

Home Bancorp, Inc is the bank holding company for The Home National Bank, a full-service financial institution headquartered in Lafayette, Louisiana. The company operates as a regional commercial bank serving individuals, small businesses and municipalities across Louisiana and East Texas. Through its network of branches and digital banking platforms, Home Bancorp offers a range of deposit and lending solutions designed to meet the needs of its local markets.

The company’s core offerings include retail deposit products such as checking, savings and money market accounts, as well as a variety of commercial and consumer lending services.