DA Davidson Offers Downbeat Outlook for HBAN Earnings

On December 19, 2024, DA Davidson, a research firm, updated its earnings predictions for Huntington Bancshares Incorporated (NASDAQ:HBAN). Analyst P. Winter has revised the forecast for the bank's earnings per share (EPS) for the fiscal year 2025, decreasing the estimate from $1.40 to $1.39. Despite this adjustment, DA Davidson maintains a “Buy” rating on the stock and sets a target price of $17.50. In comparison, the consensus estimate for Huntington Bancshares’ earnings this year stands at $1.21 per share.

Huntington Bancshares reported its most recent quarterly earnings on October 17, 2024. The bank achieved an EPS of $0.33, surpassing the consensus estimate of $0.30 by $0.03. This result translates to a return on equity of 10.72% and a net margin of 14.19%. The reported revenue for the quarter was $1.89 billion, which also exceeded analysts’ projections of $1.86 billion. Notably, during the same quarter the year prior, the EPS was $0.36.

In addition to DA Davidson, several other firms have recently provided their insights on HBAN. On December 12, 2024, Royal Bank of Canada reaffirmed an “outperform” rating with a price target of $20.00. Similarly, Sandler O’Neill reiterated a “buy” rating on October 18, 2024. Evercore ISI raised their price target for the stock from $17.00 to $18.00, while Barclays increased their target from $15.00 to $17.00, giving it an “equal weight” rating. Citigroup also elevated their target price from $18.00 to $21.00, maintaining a “buy” rating. Overall, one analyst has advised a sell rating, six recommend holding, twelve suggest buying, and one rates it as a strong buy. According to data from MarketBeat.com, the stock holds an average rating of “Moderate Buy” with a consensus target price of $17.41.

Stock Performance of Huntington Bancshares

Shares of Huntington Bancshares (NASDAQ:HBAN) opened at $16.32 on the recent trading day. The company’s fifty-day moving average stands at $16.80, while the two-hundred day average is at $14.95. The bank’s financial ratios indicate a debt-to-equity ratio of 0.86, a quick ratio of 0.87, and a current ratio of 0.88. The stock has a market capitalization of approximately $23.71 billion, a price-to-earnings (P/E) ratio of 15.69, and a beta of 1.06. In terms of stock performance over the past year, HBAN has fluctuated, recording a 52-week low of $12.02 and a high of $18.44.

Hedge Funds' Interest in Huntington Bancshares

Institutional investors and hedge funds have been actively adjusting their positions in Huntington Bancshares recently. For instance, WealthShield Partners LLC increased their stake by 5.9% in the second quarter, resulting in ownership of 12,237 shares valued at $163,000. Similarly, UMB Bank n.a. grew its holdings by 19.1% during the third quarter, acquiring an additional 728 shares for a total of 4,545 shares valued at $67,000. Furthermore, Dillon & Associates Inc. raised their holdings by 5.9% in the same quarter. Overall, approximately 80.72% of Huntington Bancshares stock is owned by institutional investors and hedge funds.

Insider Transactions at Huntington Bancshares

Recent insider activity includes the sale of 6,455 shares by insider Helga Houston on October 23, 2024, at an average price of $15.43, totaling $99,600.65. Following this transaction, she holds 558,342 shares, valued at around $8.6 million, reflecting a decrease in her ownership by 1.14%. Another insider, VP Scott D. Kleinman, sold 28,600 shares on November 13, 2024, at an average price of $17.67, worth approximately $505,362. Post-sale, he owns 496,076 shares, representing a 5.45% decrease. Over the past three months, insiders have sold a total of 43,699 shares worth nearly $757,356. Currently, company insiders hold only 0.89% of the shares outstanding.

Dividend Announcement from Huntington Bancshares

The company has also declared its quarterly dividend, scheduled for payment on January 2, 2025. Shareholders on record as of December 18, 2024, will receive a dividend of $0.155 per share, translating to an annualized dividend of $0.62 and a dividend yield of 3.80%. Currently, the payout ratio for Huntington Bancshares is approximately 59.62%.

Company Overview of Huntington Bancshares

Huntington Bancshares Incorporated operates as the bank holding company for The Huntington National Bank. The bank offers a range of commercial, consumer, and mortgage banking services across the United States, including deposits, loans, mortgage banking, investment management, insurance, and various financial products.

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