With a market cap of $25.5 billion, Ohio’s Huntington Bancshares Incorporated (HBAN) has maintained its position as a regional bank holding company since its establishment in 1866. Through its primary entity, The Huntington National Bank, and its various affiliates, the company offers a wide range of financial services including banking, payments, wealth management, and risk management to individuals, businesses, municipalities, and organizations. With a total of 975 branches across 12 states, and selective services available beyond this reach, Huntington remains a valued financial partner to diverse communities.
Significant Stock Performance Versus Market Indices
Over the past year, Huntington’s shares have significantly outperformed the broader market. The stock has increased by approximately 60%, while the S&P 500 Index ($SPX) has returned 30.5%. In 2024, HBAN shares have risen nearly 38.4%, outpacing the S&P 500’s year-to-date return of 23%.
Comparative Gains to Financial ETFs
When comparing HBAN’s performance to the First Trust Financials AlphaDEX Fund (FXO), the financial stock has also surpassed FXO’s 44.6% return over the past 52 weeks. Furthermore, its gains in 2024 align closely with the ETF’s 30.3% growth year-to-date.
Quarterly Earnings Report Sparks Mixed Reactions
On October 17, Huntington’s Q3 earnings report outperformed Wall Street projections for both revenue and earnings. Surprisingly, this positive news did not generate significant excitement among investors, as the stock remained nearly flat following the announcement.
Market Reactions Following Recent Developments
Recently, on November 6, Huntington shares jumped over 12%, riding the wave of a broader market rally after Donald Trump’s election and the prospect of a Republican-led Congress. This surge reflected investor optimism regarding possible financial deregulation, with many seeking higher-risk financial investments in anticipation of a more accommodating regulatory climate.
Future Earnings Predictions
For the current fiscal year ending in December, analysts have forecasted an 11% decline in HBAN’s earnings per share (EPS) to $1.21. Nevertheless, Huntington boasts an impressive history of surpassing earnings expectations, having exceeded consensus estimates in each of the last four quarters.
Analyst Ratings Reflect Moderate Confidence
Among the 19 analysts tracking HBAN, the consensus rating is deemed a “Moderate Buy.” This is based on ten “Strong Buy” ratings, one “Moderate Buy,” seven “Holds,” and one “Strong Sell” rating.
Price Target Adjustments and Future Outlook
On November 11, RBC Capital revised the company’s price target to $20 from $17, representing the highest target on the Street for HBAN. This adjustment suggests a potential upside of approximately 14.2% from current prices. Conversely, the average price target stands at $17.46, indicating only a slight potential increase from current levels.
On the date of publication, Anushka Mukherjee did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
