On Jun 28, Zacks Investment Research upgraded
Home Bancshares, Inc. (Conway, AR)
) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Home Bancshares has been witnessing rising earnings estimates on
the back of strong first-quarter 2013 results and a recent
dividend hike. Opportunistic acquisitions have also been growth
drivers. Moreover, this commercial and consumer banking services
provider has a year-over-year expected earnings growth rate of
15.0% for 2013.
On Jun 25, Home Bancshares and Liberty Bancshares, Inc. announced
the signing of an agreement to merge permanently. Under the terms
of the deal, shareholders of Liberty will receive $250 million of
Home Bancshares's common shares plus $30 million in cash. The
acquisition is expected to be complete in the third or fourth
quarter of 2013, subject to regulatory approval.
Home Bancshares reported first-quarter results on Apr 18 with
earnings per share of 64 cents, beating the year-ago number of 52
cents by 23.1%. The results were primarily aided by higher net
interest income, reduced non-interest expenses and no provision
for loan losses. Net interest income jumped 21% year over year to
On the flipside, non-interest income fell 11% to $9.0 million.
Moreover, non-interest expenses increased 6% year over year to
AMERIS BANCORP (ABCB): Free Stock Analysis
FARMERS CAP KY (FFKT): Free Stock Analysis
FIRST M & F CRP (FMFC): Get Free Report
HOME BANCSHARES (HOMB): Free Stock Analysis
To read this article on Zacks.com click here.
Along with its earnings release, the company announced its board
of directors' approval of a quarterly dividend of 15 cents per
share, up 15% from the prior quarter amount. The new dividend was
paid on Jun 5, 2013, to shareholders of record as on May 15,
2013. The board of directors has also declared a two-for-one
stock split of its common stock payable in the form of a 100%
stock dividend. The two-for-one stock split was executed on Jun
Following first-quarter results, the Zacks Consensus Estimate for
2013 increased 1% to $1.28 per share over the last 60 days. For
2014, the Zacks Consensus Estimate advanced 8% to $1.44 per
Other Stocks to Consider
Apart from Home Bancshares, other stocks in the same sector with
a Zacks Rank #1 include
Farmers Capital Bank Corporation
First M&F Corporation