Latest news with #HOMB
Yahoo
14 hours ago
- Business
- Yahoo
Home BancShares (HOMB) Could Be a Great Choice
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments. While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases. Based in Conway, Home BancShares (HOMB) is in the Finance sector, and so far this year, shares have seen a price change of -3.04%. Currently paying a dividend of $0.2 per share, the company has a dividend yield of 2.92%. In comparison, the Banks - Southeast industry's yield is 2.43%, while the S&P 500's yield is 1.59%. Taking a look at the company's dividend growth, its current annualized dividend of $0.80 is up 6.7% from last year. Home BancShares has increased its dividend 4 times on a year-over-year basis over the last 5 years for an average annual increase of 9.55%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Home BancShares's current payout ratio is 38%. This means it paid out 38% of its trailing 12-month EPS as dividend. Earnings growth looks solid for HOMB for this fiscal year. The Zacks Consensus Estimate for 2025 is $2.29 per share, representing a year-over-year earnings growth rate of 13.93%. Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. It's important to keep in mind that not all companies provide a quarterly payout. High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. That said, they can take comfort from the fact that HOMB is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #2 (Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Home BancShares, Inc. (HOMB) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Yahoo
11-06-2025
- Business
- Yahoo
3 Bank Stocks in Hot Water
Banks play a critical role in the financial system, providing everything from commercial loans to wealth management and payment processing services. But concerns about loan losses and tightening regulations have tempered enthusiasm, and over the past six months, the banking industry has pulled back by 10.6%. This drawdown was especially disappointing since the S&P 500 held steady. A cautious approach is imperative when dabbling in banks as many are sensitive to interest rate changes and economic cycles. With that said, here are three bank stocks we're swiping left on. Market Cap: $5.70 billion Founded in Conway, Arkansas in 1998 and growing through strategic acquisitions across the Southeast, Home Bancshares (NYSE:HOMB) operates as the bank holding company for Centennial Bank, providing commercial and retail banking services to businesses and individuals across multiple states. Why Is HOMB Not Exciting? Sales stagnated over the last two years and signal the need for new growth strategies Estimated net interest income growth of 1.4% for the next 12 months implies demand will slow from its four-year trend Productivity and efficiency ratio profits are expected to increase next year as some fixed cost leverage kicks in Home Bancshares's stock price of $28.75 implies a valuation ratio of 1.4x forward P/B. Dive into our free research report to see why there are better opportunities than HOMB. Market Cap: $4.95 billion Operating through seventeen distinct bank divisions with local brands and management teams, Glacier Bancorp (NYSE:GBCI) is a bank holding company that provides various banking services to individuals and businesses across eight western states. Why Do We Think Twice About GBCI? Sales tumbled by 2.5% annually over the last two years, showing market trends are working against its favor during this cycle Annual net interest income growth of 4% over the last four years was below our standards for the bank sector Sales were less profitable over the last two years as its earnings per share fell by 16.5% annually, worse than its revenue declines Glacier Bancorp is trading at $43.81 per share, or 1.4x forward P/B. To fully understand why you should be careful with GBCI, check out our full research report (it's free). Market Cap: $2.66 billion With roots dating back to 1974 and a focus on serving small and medium-sized businesses, CVB Financial (NASDAQ:CVBF) operates Citizens Business Bank, providing banking, lending, and trust services to businesses and individuals across California. Why Are We Out on CVBF? Net interest income trends were unexciting over the last four years as its 1.6% annual growth was below the typical bank company Net interest margin shrank by 22 basis points (100 basis points = 1 percentage point) over the last two years, suggesting the yields on its loan book are decreasing or the market is becoming more competitive 2.7% annual tangible book value per share growth over the last five years was slower than its bank peers At $19.31 per share, CVB Financial trades at 1.2x forward P/B. If you're considering CVBF for your portfolio, see our FREE research report to learn more. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17-05-2025
- Business
- Yahoo
Why Home BancShares (HOMB) is a Great Dividend Stock Right Now
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments. Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases. Based in Conway, Home BancShares (HOMB) is in the Finance sector, and so far this year, shares have seen a price change of 3.82%. The bank holding company is paying out a dividend of $0.19 per share at the moment, with a dividend yield of 2.72% compared to the Banks - Southeast industry's yield of 2.35% and the S&P 500's yield of 1.55%. Taking a look at the company's dividend growth, its current annualized dividend of $0.80 is up 6.7% from last year. Home BancShares has increased its dividend 4 times on a year-over-year basis over the last 5 years for an average annual increase of 9.55%. Any future dividend growth will depend on both earnings growth and the company's payout ratio; a payout ratio is the proportion of a firm's annual earnings per share that it pays out as a dividend. Home BancShares's current payout ratio is 38%, meaning it paid out 38% of its trailing 12-month EPS as dividend. HOMB is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2025 is $2.29 per share, representing a year-over-year earnings growth rate of 13.93%. From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. However, not all companies offer a quarterly payout. Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that HOMB is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Home BancShares, Inc. (HOMB) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
18-04-2025
- Business
- Yahoo
Home BancShares Inc (HOMB) Q1 2025 Earnings Call Highlights: Record Earnings Amid Economic ...
Earnings: $115.2 million, $0.58 per share; core earnings $111.9 million, $0.56 per share. Revenue: $260.1 million, up $13.1 million year-over-year. Net Interest Margin: 4.44%, up from 4.39% in Q4 2024. Net Interest Spread: Improved to 3.69% from 3.58% in December 2024. Loan Growth: Net loan growth of $187.6 million; total loans at $14.950 billion. Deposits: Increased by over $395 million to $17.5 billion. Loan-to-Deposit Ratio: Decreased to 85.24%. Nonperforming Loans: Improved to 0.60% from 0.67%. Capital Ratios: CET1 at 15.4%, leverage at 13.3%, total risk-based at 19.1%. Tangible Book Value: Increased to $13.15, up $1.86 year-over-year. Return on Tangible Common Equity: 18.39% for the quarter. Stock Buyback: Purchased approximately 1 million shares during the quarter. Warning! GuruFocus has detected 2 Warning Sign with HOMB. Release Date: April 17, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Home BancShares Inc (NYSE:HOMB) reported a record first quarter earnings of $115.2 million, or $0.58 per share, marking a significant breakout from previous quarters. The company set six new performance records, demonstrating strong capital, excessive loan loss reserves, excellent liquidity, good asset quality, and strong operating efficiencies. Net interest margin improved to 4.44% from 4.39% in the previous quarter, with a net interest spread increase of 11 basis points. Strong loan growth was reported, with a net increase of $187.6 million for the quarter, reaching a record level of loans at $14.950 billion. Deposits increased by over $395 million in Q1, taking the total to $17.5 billion, and the loan-to-deposit ratio decreased to 85.24%. The earnings were achieved during uncertain economic times, which could overshadow the positive results. The Texas lawsuit incurred a $2 million after-tax expense this quarter, although it is expected to be non-recurring in the future. Loan yields dropped on a linked quarter basis to 7.38% from 7.49%, indicating potential pressure on future margins. The CCFG portfolio declined by approximately $100 million, primarily in the commercial and industrial loan book. There is uncertainty in the market due to tariffs, which may impact borrower sentiment and slow down some projects. Q: What are you hearing from your customers regarding loan demand, particularly in boat lending, given the current economic uncertainty? A: Kevin Hester, Chief Lending Officer, noted that there is some uncertainty affecting projects in the planning stage, but overall, there is still a lot of activity in core markets. John Marshall, President of Shore Premier Finance, added that boat lending volume was elevated due to a European manufacturer subsidizing pricing, which has masked some uncertainty around tariffs. Q: Can you provide an update on the net interest margin and the outlook for deposit and loan yields? A: Stephen Tipton, CEO of Centennial Bank, reported a net interest margin of 4.42% for Q1, with new loan production yields averaging 7.75%. He mentioned opportunities to reduce costs on checking and savings deposits, depending on competition, and noted that a significant portion of the CD portfolio is maturing soon, which could lead to a decrease in costs. Q: Are there any concerns in your core markets or specific industries due to the current economic environment? A: Kevin Hester stated that while there are no general concerns, they are monitoring individual situations closely. John Allison, CEO, emphasized that it is too early to determine the impact of tariffs, but they are staying ahead of discussions. Q: What is the status of the Texas lawsuit expenses, and how will it affect future expenses? A: John Allison explained that the Texas lawsuit incurred $2 million in after-tax expenses this quarter, which are expected to be non-recurring in the future. He anticipates expenses to stabilize around $111 million, excluding these legal costs. Q: What are your thoughts on capital allocation, particularly regarding share buybacks and potential M&A? A: John Allison stated that they are open to M&A if the right deal comes along but are also focused on share buybacks. Brian Davis, CFO, mentioned plans to pay off $140 million in sub-debt to avoid a rate increase, emphasizing the importance of maintaining strong capital and liquidity. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
