Adversity is less terrifying than hope: Huntington Bancshares Incorporated (HBAN)

Huntington Bancshares Incorporated (NASDAQ: HBAN) stock fell -1.29% on Friday to $13.72 against a previous-day closing price of $13.90. With 18.82 million shares changed hands, the volume of the stock remained heavier than its average volume of 12.97 million shares. During the session, the Banks – Regional company that operates in wider Financial sector, reached to the highest price of $14.16 whereas the lowest price it dropped to was $13.72. The 52-week range on HBAN shows that it touched its highest point at $17.79 and its lowest point at $11.67 during that stretch. It currently has a 1-year price target of $14.91. With its current market cap of 20.58 billion, HBAN has annualized dividend of $0.62 while the current yield stands at 4.52%. Beta for the stock currently stands at 1.17.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of HBAN was down-trending over the past week, with a drop of -1.08%, but this was up by 0.07% over a month. Three-month performance surged to 12.74% while six-month performance fell -11.02%. The stock lost -3.72% in the past year, while it has lost -11.02% so far this year. A look at the trailing 12-month EPS for HBAN yields 1.12 with Next year EPS estimates of 1.51. For the next quarter, that number is 0.39. This implies an EPS growth rate of 29.10% for this year and 6.50% for next year. EPS is expected to decline by -2.15% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 5.00%.

Float and Shares Shorts:

At present, 1.44 billion HBAN shares are outstanding with a float of 1.43 billion shares on hand for trading. On Jul 14, 2022, short shares totaled 42.71 million, which was 2.96% higher than short shares on Jun 14, 2022. In addition to Mr. Stephen D. Steinour as the firm’s Chairman, Pres & CEO, Mr. Zachary J. Wasserman serves as its CFO & Sr. EVP.

Institutional Ownership:

Through their ownership of 83.11% of HBAN’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 52.26% of HBAN, in contrast to 30.17% held by mutual funds. Shares owned by individuals account for 1.97%. As the largest shareholder in HBAN with 11.09% of the stake, The Vanguard Group, Inc. holds 159,944,890 shares worth 159,944,890. A second-largest stockholder of HBAN, BlackRock Fund Advisors, holds 95,338,817 shares, controlling over 6.61% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in HBAN, holding 74,169,015 shares or 5.14% stake. With a 2.96% stake in HBAN, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 42,635,318 shares are owned by the mutual fund manager. The Vanguard Mid Cap Index Fund, which owns about 2.29% of HBAN stock, is the second-largest Mutual Fund holder. It holds 33,044,844 shares valued at 442.8 million. Vanguard 500 Index Fund holds 2.23% of the stake in HBAN, owning 32,150,900 shares worth 430.82 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for HBAN since 20 analysts follow the stock currently. There are 6 analysts who recommend BUY ratings, while 3 suggest SELL ratings. Of the remaining analysts, 8 believe that the stock is worth HOLDING, 3 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With HBAN analysts setting a high price target of $17.00 and a low target of $11.00, the average target price over the next 12 months is $14.91. Based on these targets, HBAN could surge 23.91% to reach the target high and fall by -19.83% to reach the target low. Reaching the average price target will result in a growth of 8.67% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. HBAN will report FY 2022 earnings on 01/26/2023. Analysts have provided yearly estimates in a range of $1.47 being high and $1.25 being low. For HBAN, this leads to a yearly average estimate of $1.42. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Huntington Bancshares Incorporated surprised analysts by $0.01 when it reported $0.35 EPS against a consensus estimate of $0.34. The surprise factor in the prior quarter was $0.00. Based on analyst estimates, the high estimate for the next quarter is $0.41 and the low estimate is $0.36. The average estimate for the next quarter is thus $0.39.

Dividends & Yield:

In terms of dividends, HBAN has a current ratio of $0.62, which is $0.62 over the trailing 12-months, while a dividend of $0.53 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and HBAN currently yields $4.52. In the past year, HBAN’s dividend yield has been $4.52, but when looking at the stock over the past five years, its yield has been $4.05. Accordingly, HBAN has a current buyback yield of $3.29. This was $3.29 for the TTM, and it was $3.26 for the past five years.

Summary of Insider Activity:

Insiders traded HBAN stock several times over the past three months with 12 Buys and 5 Sells. In these transactions, 105,465 shares were bought while 53,489 shares were sold. The number of buy transactions has increased to 97 while that of sell transactions has risen to 114 over the past year. The total number of shares bought during that period was 2,236,382 while 1,691,058 shares were sold.

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