What Type Of Shareholders Make Up Home Bancshares, Inc. (Conway, AR)'s (NASDAQ:HOMB) Share Registry?

Simply Wall St

Sun, Mar 7, 2021, 10:52 PM 4 min read

If you want to know who really controls Home Bancshares, Inc. (Conway, AR) (NASDAQ:HOMB), then you'll have to look at the makeup of its share registry. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.

Home Bancshares (Conway AR) is a pretty big company. It has a market capitalization of US$4.4b. Normally institutions would own a significant portion of a company this size. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. Let's delve deeper into each type of owner, to discover more about Home Bancshares (Conway AR).

View our latest analysis for Home Bancshares (Conway AR)

ownership-breakdown — NasdaqGS:HOMB Ownership Breakdown March 8th 2021

What Does The Institutional Ownership Tell Us About Home Bancshares (Conway AR)?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

We can see that Home Bancshares (Conway AR) does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Home Bancshares (Conway AR)'s earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth — NasdaqGS:HOMB Earnings and Revenue Growth March 8th 2021

Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Home Bancshares (Conway AR) is not owned by hedge funds. Our data shows that BlackRock, Inc. is the largest shareholder with 11% of shares outstanding. T. Rowe Price Group, Inc. is the second largest shareholder owning 9.8% of common stock, and The Vanguard Group, Inc. holds about 8.4% of the company stock. Additionally, the company's CEO John Allison directly holds 4.0% of the total shares outstanding.

After doing some more digging, we found that the top 13 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Home Bancshares (Conway AR)

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our most recent data indicates that insiders own some shares in Home Bancshares, Inc. (Conway, AR). This is a big company, so it is good to see this level of alignment. Insiders own US$342m worth of shares (at current prices). If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

The general public holds a 22% stake in Home Bancshares (Conway AR). While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Home Bancshares (Conway AR) better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Home Bancshares (Conway AR) you should know about.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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