Home Bancshares Inc. (Conway AR) (NYSE: HOMB) stock jumped 1.93% on Thursday to $22.18 against a previous-day closing price of $21.76. With 0.79 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.01 million shares. During the session, the Banks – Regional company that operates in wider Financial sector, reached to the highest price of $22.23 whereas the lowest price it dropped to was $21.96. The 52-week range on HOMB shows that it touched its highest point at $26.20 and its lowest point at $19.77 during that stretch. It currently has a 1-year price target of $27.00. With its current market cap of 4.48 billion, HOMB has annualized dividend of $0.72 while the current yield stands at 3.25%. Beta for the stock currently stands at 1.18.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of HOMB was up-trending over the past week, with a rise of 1.00%, but this was down by -1.68% over a month. Three-month performance dropped to -5.78% while six-month performance rose 2.35%. The stock lost -4.81% in the past year, while it has lost -2.68% so far this year. A look at the trailing 12-month EPS for HOMB yields 2.12 with Next year EPS estimates of 1.89. For the next quarter, that number is 0.48. This implies an EPS growth rate of -19.10% for this year and -4.69% for next year. EPS is expected to grow by 5.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 6.50%.
Float and Shares Shorts:
At present, 202.79 million HOMB shares are outstanding with a float of 188.04 million shares on hand for trading. On Aug 14, 2023, short shares totaled 6.54 million, which was 3.23% higher than short shares on Jul 13, 2023. In addition to Mr. John W. Allison as the firm’s Co-Founder, Chairman, Pres & CEO, Mr. Brian S. Davis serves as its CFO, Treasurer & Director.
Through their ownership of 65.66% of HOMB’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 39.79% of HOMB, in contrast to 26.27% held by mutual funds. Shares owned by individuals account for 10.36%. As the largest shareholder in HOMB with 10.34% of the stake, The Vanguard Group, Inc. holds 20,963,869 shares worth 20,963,869. A second-largest stockholder of HOMB, BlackRock Fund Advisors, holds 20,799,160 shares, controlling over 10.26% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in HOMB, holding 8,738,633 shares or 4.31% stake. With a 3.05% stake in HOMB, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 6,187,758 shares are owned by the mutual fund manager. The iShares Core S&P Mid Cap ETF, which owns about 2.98% of HOMB stock, is the second-largest Mutual Fund holder. It holds 6,050,324 shares valued at 147.08 million. Vanguard Small Cap Index Fund holds 2.46% of the stake in HOMB, owning 4,996,201 shares worth 121.46 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for HOMB since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With HOMB analysts setting a high price target of $28.00 and a low target of $26.00, the average target price over the next 12 months is $27.00. Based on these targets, HOMB could surge 26.24% to reach the target high and rise by 17.22% to reach the target low. Reaching the average price target will result in a growth of 21.73% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Summary of Insider Activity:
Insiders traded HOMB stock several times over the past three months with 0 Buys and 1 Sells. In these transactions, 0 shares were bought while 900 shares were sold. The number of buy transactions has increased to 27 while that of sell transactions has risen to 29 over the past year. The total number of shares bought during that period was 438,961 while 460,344 shares were sold.