Home Bancshares, Inc. (Conway, AR): Consensus Recommendation of 'Moderate Buy'

Home Bancshares, Inc. (Conway, AR) (NYSE:HOMB) has recently received a consensus recommendation of “Moderate Buy” from the five brokerage firms that cover the stock, according to Marketbeat.com. Among these analysts, two have assigned a hold rating, while three have given the stock a buy rating. Additionally, the average twelve-month target price set by these brokerages for Home Bancshares is $32.00.

Several analysts have issued their opinions on the company's stock over the past few months. On January 17th, Hovde Group reduced its target price from $36.00 to $35.00 while maintaining an “outperform” rating for the stock. In another report from October 18th, the Royal Bank of Canada reiterated a “sector perform” rating and established a target price of $28.00 for Home Bancshares shares. StockNews.com made headlines on November 6th by upgrading shares from a “sell” to a “hold” rating. Keefe, Bruyette & Woods also adjusted their price objective on December 4th, increasing it from $28.00 to $32.00 and issuing a “market perform” rating. Finally, on January 16th, Stephens reaffirmed an “overweight” rating with a price objective of $34.00 for the stock.

Insider Trading Activities

In related news, Jennifer C. Floyd, the Chief Accounting Officer, sold 2,000 shares of the company's stock on November 7th for an average price of $30.18, totaling $60,360.00 from the transaction. Post-sale, Floyd holds 3,468 shares, which is valued at approximately $104,664.24, marking a 36.58% decrease in her stake. This sell-off was reported in a filing with the Securities & Exchange Commission. Additionally, Director Jack Engelkes sold 25,000 shares on November 6th, with shares sold at an average price of $30.12, accumulating to $753,000.00. Engelkes’ current direct ownership stands at 199,195 shares valued at around $5,999,753.40, reflecting an 11.15% decrease in his ownership. Over the last 90 days, insiders sold a combined total of 90,997 shares worth $2,782,548, and corporate insiders now own roughly 7.66% of the company's stock.

Institutional Investors' Activity

Several major investors have recently adjusted their positions in Home Bancshares. Harbor Capital Advisors Inc. increased its holdings by 0.5% in the fourth quarter, owning 69,914 shares now valued at $1,979,000 after acquiring an extra 374 shares. In the third quarter, GAMMA Investing LLC raised its ownership by 49.7%, now holding 1,286 shares worth $35,000 after an additional purchase of 427 shares. Thrivent Financial for Lutherans also lifted its stake by 0.6% during the same period, now owning 85,865 shares worth $2,326,000 after acquiring 481 additional shares. Blue Trust Inc. grew its holdings by 41.6% with 1,797 shares valued at $49,000. Lastly, Inspire Investing LLC raised its stake by 3.6%, bringing its total to 15,243 shares worth $413,000. Hedge funds and institutional investors collectively own 67.31% of Home Bancshares, Inc.

Price Performance Overview

Home Bancshares, Inc.'s stock opened at $30.14 on Friday. The company maintains a debt-to-equity ratio of 0.26 and has a current ratio of 0.89, with a quick ratio of 0.91. The stock's market cap stands at approximately $5.99 billion, with a price-to-earnings ratio of 14.92 and a beta of 1.10. Currently, the 50-day moving average is $29.77, while the 200-day moving average is $27.94. Over the past year, the stock has seen a low of $22.38 and a high of $32.90.

For its recent quarterly earnings report, which was announced on January 15th, Home Bancshares, Inc. reported earnings per share (EPS) of $0.50, falling short of analysts' expectations of $0.52 by $0.02. The company's revenue for the quarter totaled $258.40 million, slightly exceeding forecasts of $256.67 million. The financial services provider reported a net margin of 27.39% and a return on equity of 10.31%. Compared to the same quarter the previous year, revenue grew by 5.2%, and EPS rose from $0.43 to $0.50. Analysts predict that Home Bancshares, Inc. will achieve an EPS of 2.17 for the current year.

Company Profile

Home Bancshares, Inc. operates as the bank holding company for Centennial Bank. The company offers commercial and retail banking services and related financial solutions to businesses, real estate developers, investors, individuals, and municipalities. Their deposit offerings include checking accounts, savings accounts, money market accounts, and certificates of deposit.

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