This small cap bank recently announced a two-for-one stock split of its common stock payable in as a 100% stock dividend. The split is payable June 8, 2016, to shareholders of record May 18, 2016. The company beat analysts’ estimates by two cents last quarter, and seven analysts have increased their 2016 forecasts for the bank in the past 30 days.
Home BancShares (HOMB)
From 2 for 1 Stock Split Newsletter
Home BancShares (HOMB), of Conway Arkansas, was only recently sold from the 2 for 1 portfolio after providing us with over a 27% annualized overall return. I’m happy to report that, in spite of its super performance over the last several years, the numbers indicate this great small-cap bank is not even close to slowing down.
Valuation numbers are higher than average for its industry and sector. I can live with that because, for almost every other important metric, HOMB just crushes its peers. Starting with the growth numbers, we see this small bank in the 96th percentile for earnings growth over the last five years. Returns, profit margins, and balance sheet numbers are all far better than average for its industry.
As the banking business gets more and more concentrated into a very few megabanks, it’s very nice to see there’s still an opportunity to thrive as a much smaller local or regional institution. I’ll be very pleased to have HOMB back in the 2 for 1 portfolio.
Neil MacNeale, 2 for 1 Stock Split Newsletter, www.2-for- 1.com, 888-775- 4824, May 2016