Home Bancshares, Inc. (Conway, AR) (NYSE:HOMB) Shares Gap Down Following Weak Earnings

Home Bancshares, Inc. (Conway, AR) (NYSE:HOMB)’s share price gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $29.11, but opened at $28.20. Home Bancshares, Inc. (Conway, AR) shares last traded at $28.99, with a volume of 249,042 shares trading hands.

The financial services provider reported $0.50 earnings per share for the quarter, missing the consensus estimate of $0.52 by ($0.02). The business had revenue of $258.40 million during the quarter, compared to analysts’ expectations of $256.67 million. Home Bancshares, Inc. (Conway, AR) had a return on equity of 10.33% and a net margin of 26.69%. Home Bancshares, Inc. (Conway, AR)’s revenue for the quarter was up 5.2% on a year-over-year basis. During the same period in the previous year, the company posted $0.43 EPS.

Home Bancshares, Inc. (Conway, AR) Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Wednesday, December 4th. Shareholders of record on Wednesday, November 13th were given a dividend of $0.195 per share. The ex-dividend date of this dividend was Wednesday, November 13th. This represents a $0.78 annualized dividend and a yield of 2.56%. Home Bancshares, Inc. (Conway, AR)’s dividend payout ratio (DPR) is presently 40.21%.

Analysts Set New Price Targets

A number of brokerages recently weighed in on HOMB. Keefe, Bruyette & Woods upped their price objective on Home Bancshares, Inc. (Conway, AR) from $28.00 to $32.00 and gave the stock a “market perform” rating in a research note on Wednesday, December 4th. Royal Bank of Canada reissued a “sector perform” rating and set a $28.00 price target on shares of Home Bancshares, Inc. (Conway, AR) in a research report on Friday, October 18th. StockNews.com raised shares of Home Bancshares, Inc. (Conway, AR) from a “sell” rating to a “hold” rating in a research report on Wednesday, November 6th. Stephens reissued an “overweight” rating and set a $34.00 target price on shares of Home Bancshares, Inc. (Conway, AR) in a research report on Thursday. Finally, Hovde Group lowered their price objective on shares of Home Bancshares, Inc. (Conway, AR) from $36.00 to $35.00 and set an “outperform” rating for the company in a research note on Friday. Three investment analysts have rated the stock with a hold rating and three have given a buy rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $32.00.

Insider Buying and Selling

In related news, Director Jack Engelkes sold 25,000 shares of the business’s stock in a transaction on Wednesday, November 6th. The shares were sold at an average price of $30.12, for a total value of $753,000.00. Following the completion of the sale, the director now directly owns 199,195 shares of the company’s stock, valued at $5,999,753.40. The trade was a 11.15 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director James Pat Hickman sold 63,997 shares of the stock in a transaction that occurred on Monday, November 18th. The shares were sold at an average price of $30.77, for a total value of $1,969,187.69. Following the completion of the sale, the director now directly owns 175,500 shares of the company’s stock, valued at $5,400,135. The trade was a 26.72 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 90,997 shares of company stock valued at $2,782,548. Corporate insiders own 7.66% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of HOMB. Dimensional Fund Advisors LP increased its position in shares of Home Bancshares, Inc. (Conway, AR) by 8.1% in the second quarter. Dimensional Fund Advisors LP now owns 6,550,418 shares of the financial services provider’s stock valued at $156,946,000 after buying an additional 490,718 shares in the last quarter. Geode Capital Management LLC raised its position in shares of Home Bancshares, Inc. (Conway, AR) by 1.4% during the 3rd quarter. Geode Capital Management LLC now owns 4,465,144 shares of the financial services provider’s stock worth $120,983,000 after purchasing an additional 60,588 shares during the last quarter. Copeland Capital Management LLC lifted its stake in Home Bancshares, Inc. (Conway, AR) by 0.9% in the 3rd quarter. Copeland Capital Management LLC now owns 3,240,644 shares of the financial services provider’s stock valued at $87,789,000 after buying an additional 28,604 shares in the last quarter. Charles Schwab Investment Management Inc. lifted its stake in Home Bancshares, Inc. (Conway, AR) by 7.0% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 2,046,153 shares of the financial services provider’s stock valued at $55,430,000 after buying an additional 134,741 shares in the last quarter. Finally, Fisher Asset Management LLC grew its holdings in Home Bancshares, Inc. (Conway, AR) by 2.7% during the 3rd quarter. Fisher Asset Management LLC now owns 1,765,799 shares of the financial services provider’s stock valued at $47,835,000 after buying an additional 47,259 shares during the last quarter. Hedge funds and other institutional investors own 67.31% of the company’s stock.

Home Bancshares, Inc. (Conway, AR) Price Performance

The company has a debt-to-equity ratio of 0.44, a current ratio of 0.91 and a quick ratio of 0.91. The firm has a market capitalization of $6.05 billion, a PE ratio of 15.69 and a beta of 1.10. The company has a 50-day moving average price of $29.78 and a 200-day moving average price of $27.83.

About Home Bancshares, Inc. (Conway, AR)

Home Bancshares, Inc (Conway, AR) operates as the bank holding company for Centennial Bank that provides commercial and retail banking, and related financial services to businesses, real estate developers and investors, individuals, and municipalities. Its deposit products include checking, savings, and money market accounts, as well as certificates of deposit.