Home Bancshares (HOMB) Downgraded by Zacks Investment Research to Sell

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Zacks Investment Research lowered shares of Home Bancshares (NASDAQ:HOMB) from a hold rating to a sell rating in a research note released on Wednesday morning.

According to Zacks, “HOME BANCSHARES, INC. is a bank holding company, headquartered in Conway, Arkansas, with six wholly owned bank subsidiaries that provide a broad range of commercial and retail banking and related financial services to businesses, real estate developers and investors, individuals and municipalities. Three of the bank subsidiaries are located in the central Arkansas market area, a fourth serves central and southern Arkansas, a fifth serves Stone County in north central Arkansas, and a sixth serves the Florida Keys and southwestern Florida. “

Several other equities research analysts also recently weighed in on the company. Piper Jaffray Companies raised Home Bancshares from a neutral rating to an overweight rating and set a $28.00 price objective on the stock in a report on Thursday, March 1st. Sandler O’Neill set a $25.00 price objective on Home Bancshares and gave the company a hold rating in a report on Wednesday, March 28th. FIG Partners raised Home Bancshares from a market-perform rating to an outperform rating in a report on Friday, April 20th. BidaskClub downgraded Home Bancshares from a hold rating to a sell rating in a report on Friday, April 20th. Finally, Keefe, Bruyette & Woods reissued a buy rating and set a $28.00 price objective on shares of Home Bancshares in a report on Friday, April 20th. Three investment analysts have rated the stock with a sell rating, one has given a hold rating and six have issued a buy rating to the company. The stock presently has a consensus rating of Hold and a consensus target price of $27.43.

Shares of Home Bancshares opened at $23.19 on Wednesday, according to MarketBeat Ratings. Home Bancshares has a 52-week low of $20.82 and a 52-week high of $25.90. The company has a debt-to-equity ratio of 0.66, a quick ratio of 1.02 and a current ratio of 1.02. The firm has a market capitalization of $4.02 billion, a PE ratio of 17.18 and a beta of 1.08.

Home Bancshares (NASDAQ:HOMB) last issued its quarterly earnings results on Thursday, April 19th. The financial services provider reported $0.42 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.41 by $0.01. Home Bancshares had a return on equity of 11.35% and a net margin of 24.23%. The company had revenue of $186.70 million for the quarter, compared to analyst estimates of $164.30 million. During the same quarter last year, the company posted $0.33 EPS. The company’s revenue for the quarter was up 32.4% compared to the same quarter last year. equities research analysts expect that Home Bancshares will post 1.76 earnings per share for the current year.

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, June 6th. Investors of record on Wednesday, May 16th were issued a dividend of $0.11 per share. This represents a $0.44 annualized dividend and a dividend yield of 1.90%. The ex-dividend date was Tuesday, May 15th. Home Bancshares’s dividend payout ratio (DPR) is 32.59%.

Home Bancshares announced that its board has authorized a stock buyback plan on Thursday, February 22nd that permits the company to buyback 5,000,000 outstanding shares. This buyback authorization permits the financial services provider to reacquire shares of its stock through open market purchases. Shares buyback plans are generally an indication that the company’s leadership believes its stock is undervalued.

In related news, Chairman John W. Allison bought 20,000 shares of the business’s stock in a transaction on Thursday, April 19th. The shares were purchased at an average cost of $21.32 per share, with a total value of $426,400.00. Following the acquisition, the chairman now owns 5,160,629 shares of the company’s stock, valued at $110,024,610.28. The purchase was disclosed in a filing with the SEC, which is available through this link. Also, insider Russell Davis Carter III sold 3,500 shares of Home Bancshares stock in a transaction dated Tuesday, May 8th. The stock was sold at an average price of $23.67, for a total value of $82,845.00. Following the transaction, the insider now directly owns 16,259 shares in the company, valued at $384,850.53. The disclosure for this sale can be found here. Insiders have sold a total of 53,500 shares of company stock worth $1,267,604 over the last ninety days. Company insiders own 9.15% of the company’s stock.

A number of institutional investors and hedge funds have recently made changes to their positions in HOMB. Zurcher Kantonalbank Zurich Cantonalbank raised its position in shares of Home Bancshares by 43.3% in the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 7,794 shares of the financial services provider’s stock worth $181,000 after acquiring an additional 2,354 shares in the last quarter. Aperio Group LLC raised its position in shares of Home Bancshares by 8.5% in the 1st quarter. Aperio Group LLC now owns 37,187 shares of the financial services provider’s stock worth $848,000 after acquiring an additional 2,905 shares in the last quarter. Teachers Retirement System of The State of Kentucky raised its position in shares of Home Bancshares by 9.7% in the 4th quarter. Teachers Retirement System of The State of Kentucky now owns 33,900 shares of the financial services provider’s stock worth $788,000 after acquiring an additional 3,000 shares in the last quarter. Great West Life Assurance Co. Can raised its position in shares of Home Bancshares by 3.4% in the 1st quarter. Great West Life Assurance Co. Can now owns 95,274 shares of the financial services provider’s stock worth $2,174,000 after acquiring an additional 3,098 shares in the last quarter. Finally, King Luther Capital Management Corp raised its position in shares of Home Bancshares by 0.4% in the 4th quarter. King Luther Capital Management Corp now owns 789,047 shares of the financial services provider’s stock worth $18,345,000 after acquiring an additional 3,375 shares in the last quarter. 64.52% of the stock is currently owned by hedge funds and other institutional investors.

About Home Bancshares

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, NOW, and money market accounts, as well as certificates of deposit.

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