State’s transport, financial stocks take 1Q dip

The Simmons Bank headquarters, located at 501 S. Main St. in Pine Bluff. (Pine Bluff Commercial/Dale Ellis)
The Simmons Bank headquarters, located at 501 S. Main St. in Pine Bluff. (Pine Bluff Commercial/Dale Ellis)

Stock markets delivered a volatile performance in the first quarter of 2022, and that turbulence was reflected in the Arkansas Index, which tracks the 14 largest publicly traded companies in the state.

The year began with some distress as the S&P 500 recorded its worst January since 2009 and officially hit correction territory -- a decline of more than 10% -- in February.

Some Arkansas stocks were able to weather the storm. Dillard's Inc. shares rallied 9.5% in the first three months of the year while shares of Walmart Inc. hung on for a 2.9% gain.

"Despite a 10% decline in the Dow Jones U.S. Retail Index, shares of Walmart and Dillard's finished the first quarter higher," Chris Harkins, managing director of Raymond James & Associates, said Thursday. "Shares of Dillard's continue to impress investors with shares up 190% over the past 12 months.

Tyson Foods Inc. also finished the quarter on the upside, rising 2.83% in the first quarter and shares are up 20% over the past year. The Springdale-based company said that it is adjusting its pricing based on an outlook of higher expenses, while employee turnover has stabilized.

It was a different story in the transportation industry.

"Arkansas transportation companies mostly sold-off in the first quarter, with ArcBest suffering the worst – down 33% in the first quarter," Harkins said.

Shares of USA Truck Inc., however, rose 3.6% during the first three months of the year. "As a comparison, the Nasdaq Transportation Index fell 7.6% this year," Harkins said. "Higher fuel and labor costs continue to offset strong demand."

Financial stocks also dipped during the quarter that ended Thursday. Simmons First National Corp. was hit hardest, sliding 11% in the quarter. Home BancShares Inc. was down 7% and Bank OZK was off 8%. By comparison, the S&P 500 Regional Bank Index finished down 2.8%.

Simmons and Home BancShares both are projected to close on major transactions in the coming weeks that will expand their presence in key Texas markets. Home BancShares is investing about $1 billion to buy an Amarillo-based bank and Simmons will spend $581 million to buy a Conroe lender.

For Simmons First of Pine Bluff, the acquisition of Spirit of Texas Bancshares Inc. is an expansion into key markets in Austin, College Station, Houston and San Antonio, among others. The bank adds additional properties in the Dallas-Fort Worth area, where it has been operating for several years.

Conway-based Home BancShares is adding larger markets in the Texas panhandle -- Amarillo and Lubbock -- and moves into the Texas triangle region with properties in Austin and Dallas with the purchase of Happy Bancshares Inc.

Upcoming Events