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Valued at a market cap of $23 billion, Huntington Bancshares Incorporated (HBAN) is a bank holding company headquartered in Columbus, Ohio. It offers a comprehensive range of financial services, including commercial and consumer banking, mortgage lending, vehicle, equipment, and distribution finance, treasury management, wealth and investment management, and capital markets services.
Companies worth $10 billion or more are typically classified as “large-cap stocks,” and HBAN fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the banks - regional industry. The company's strengths lie in its strong regional dominance in the Midwest, supported by a large branch network and a well-diversified financial services portfolio that caters to both retail and commercial clients. Its customer-centric approach, digital innovation, and strong risk management framework help drive consistent loan growth and client retention.
This bank holding company is currently trading 14.7% below its 52-week high of $18.45, reached on Nov. 25, 2024. HBAN has surged 6.6% over the past three months, slightly outpacing the S&P 500 Index’s ($SPX) 6.5% return during the same time frame.
Moreover, in the longer term, HBAN has rallied 26.2% over the past 52 weeks, outpacing SPX’s 9% rise over the same time frame. However, on a YTD basis, shares of HBAN are down 3.3%, lagging behind SPX’s 1.7% uptick.
To confirm its recent bullish trend, HBAN has been trading above its 50-day moving average since early May. The stock’s current price level is mirroring its 200-day moving average, indicating stability.
On Apr. 17, shares of HBAN closed up more than 3% after its strong Q1 earnings release. Due to higher interest income and a decline in interest expenses, the company’s adjusted net interest income improved 10.8% year-over-year, reaching $1.4 billion. Moreover, its revenue net of interest expense advanced 9.5% from the year-ago quarter to $1.9 billion, exceeding the consensus estimates by 2.1%. Meanwhile, its EPS of $0.34 grew 30.8% from the same period last year and came in 9.7% above Wall Street expectations. Key performance drivers included growth in average total deposits, expansion in average loans and leases, an improved net interest margin, and increased operating efficiency, as reflected in a lower efficiency ratio.
HBAN has outpaced its rival, M&T Bank Corporation’s (MTB) 23.8% rise over the past 52 weeks and 3.4% decline on a YTD basis.
Looking at HBAN’s recent outperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 21 analysts covering it, and the mean price target of $17.75 suggests a 12.8% premium to its current price levels.
