1. Home Bancshares
(HOMB - Get Report)
of Conway, Ark., closed at $28.59 Thursday, returning 11% year-to-date, following a 19% return during 2011.
Based on a 10-cent quarterly payout, the shares have a dividend yield of 1.40%.
Home Bancshares had $4.1 billion in total assets as of March 31, with 84 branches in Arkansas, Alabama and Florida. The company has been expanding over the past few years through a series of acquisitions, the most recent of which was Vision Bank of Panama City, Fla., which was purchased from
Park National Corp.
, and included 17 branches in Alabama and Florida.
The company's ROA has ranged from 1.38% to 1.58% over the past five quarters.
The shares trade for just over twice their tangible book value, and for 13 times the consensus 2013 EPS estimate of $2.26. The consensus 2012 EPS estimate is $2.17.
FIG Partners analyst Brian Martin rates Home Bancshares "Outperform," with a $32 price target, saying in late April that "upside from current levels exists as profitability ramps up at [the company's] Florida/Alabama operations."
Home Bancshares repurchased 205,600 shares during the first quarter, and Martin believes that "excess capital and strong earnings power should allow for increased dividends and additional share repurchase; however, the priority is deploying excess capital into M&A."
The analyst estimates that Home Bancshares will earn $2.18 a share this year, followed by 2013 EPS of $2.29.
Interested in more Home Bancshares? See TheStreet Ratings' report card for this stock.
Written by Philip van Doorn in Jupiter, Fla.
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