An analyst sees good growth prospects for F.N.B. Corporation (FNB)

F.N.B. Corporation (NYSE: FNB) stock jumped 3.51% on Tuesday to $13.57 against a previous-day closing price of $13.11. With 4.36 million shares changed hands, the volume of the stock remained heavier than its average volume of 2.52 million shares. During the session, the Banks – Regional company that operates in wider Financial sector, reached to the highest price of $13.70 whereas the lowest price it dropped to was $12.99. The 52-week range on FNB shows that it touched its highest point at $14.71 and its lowest point at $10.48 during that stretch. It currently has a 1-year price target of $15.56. With its current market cap of 4.68 billion, FNB has annualized dividend of $0.48 while the current yield stands at 3.54%. Beta for the stock currently stands at 1.10.

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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 FNB was up-trending over the past week, with a rise of 3.12%, but this was up by 5.28% over a month. Three-month performance dropped to -1.88% while six-month performance rose 15.10%. The stock gained 4.46% in the past year, while it has gained 3.98% so far this year. A look at the trailing 12-month EPS for FNB yields 1.14 with Next year EPS estimates of 1.59. For the next quarter, that number is 0.42. This implies an EPS growth rate of 44.90% for this year and 16.36% for next year. EPS is expected to grow by 10.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 9.40%.

Float and Shares Shorts:

At present, 350.91 million FNB shares are outstanding with a float of 347.26 million shares on hand for trading. On Oct 13, 2022, short shares totaled 10.51 million, which was 3.00% higher than short shares on Sep 14, 2022. In addition to Mr. Vincent J. Delie Jr. as the firm’s Chairman, Pres & CEO, Mr. Vincent J. Calabrese Jr. serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 77.76% of FNB’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 50.73% of FNB, in contrast to 24.89% held by mutual funds. Shares owned by individuals account for 2.20%. As the largest shareholder in FNB with 10.12% of the stake, The Vanguard Group, Inc. holds 36,474,645 shares worth 36,474,645. A second-largest stockholder of FNB, BlackRock Fund Advisors, holds 36,437,549 shares, controlling over 10.11% of the firm’s shares. Fuller & Thaler Asset Management, is the third largest shareholder in FNB, holding 27,457,044 shares or 7.62% stake. With a 5.15% stake in FNB, the Undiscovered Managers Behavioral is the largest stakeholder. A total of 18,565,580 shares are owned by the mutual fund manager. The iShares Core S&P Mid Cap ETF, which owns about 3.00% of FNB stock, is the second-largest Mutual Fund holder. It holds 10,822,362 shares valued at 141.23 million. Vanguard Total Stock Market Index holds 2.97% of the stake in FNB, owning 10,718,747 shares worth 139.88 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for FNB since 8 analysts follow the stock currently. There are 5 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 2 believe that the stock is worth HOLDING, 1 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 FNB analysts setting a high price target of $17.00 and a low target of $13.00, the average target price over the next 12 months is $15.63. Based on these targets, FNB could surge 25.28% to reach the target high and fall by -4.2% to reach the target low. Reaching the average price target will result in a growth of 15.18% 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. FNB will report FY 2023 earnings on 01/23/2024. Analysts have provided yearly estimates in a range of $1.78 being high and $1.35 being low. For FNB, this leads to a yearly average estimate of $1.60. The surprise factor in the prior quarter was $0.03. Based on analyst estimates, the high estimate for the next quarter is $0.43 and the low estimate is $0.32. The average estimate for the next quarter is thus $0.39.

Summary of Insider Activity:

Insiders traded FNB stock several times over the past three months with 1 Buys and 7 Sells. In these transactions, 500 shares were bought while 74,157 shares were sold. The number of buy transactions has increased to 42 while that of sell transactions has risen to 30 over the past year. The total number of shares bought during that period was 798,455 while 455,803 shares were sold.

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