Intel stock extends gains after report of possible U.S. government stake
On Thursday, Barclays (LON:BARC) analyst Jason Goldberg maintained an Equalweight rating and a $19.00 price target on Huntington Bancshares stock, traded on (NASDAQ:HBAN). Currently trading at $13.75 with a P/E ratio of 11.08, the stock offers a notable dividend yield of 4.67%. The financial institution reported a first-quarter earnings per share (EPS) of $0.34, surpassing the consensus estimate of $0.31. According to InvestingPro, the bank has maintained dividend payments for an impressive 55 consecutive years, demonstrating strong commitment to shareholder returns. The results for the quarter included a $3 million special assessment expense from the Federal Deposit Insurance Corporation (FDIC), which contrasted with a $3 million benefit in the previous quarter. The provision for credit losses was $29 million higher than net charge-offs (NCOs), with an additional $10 million added to the reserve in the fourth quarter of 2024.
Huntington Bancshares also announced that its Board has approved a new $1 billion share buyback program, which represents about 5% of the company’s shares. However, the bank anticipates that share repurchases in 2025 will be modest, marking a shift from the past 12 quarters during which no shares were repurchased.
The bank’s return on tangible common equity (ROTCE) was reported at 16.7%, with operating revenues up 10% year-over-year, although there was a 3% decline from the fourth quarter of 2024, totaling $1.9 billion. With a market capitalization of $20.1 billion and an overall Financial Health Score of "FAIR" from InvestingPro, Huntington demonstrates stable financial performance. Discover more insights and 6 additional ProTips with an InvestingPro subscription, including exclusive analysis on the bank’s valuation metrics and growth potential. The tangible book value increased by 6% sequentially to $8.80, which is 1.6 times the value. Huntington also posted a 1.04% return on assets (ROA), an 11.3% return on equity (ROE), and its Common Equity Tier 1 (CET1) ratio improved by 10 basis points to 10.6%, or 8.9% when adjusted for accumulated other comprehensive income (AOCI). There was a slight 0.1% increase in average diluted shares.
Additionally, in the first quarter of 2025, Huntington completed a credit-linked note (CLN) transaction related to a $3.5 billion pool of on-balance sheet prime indirect auto loans. This transaction significantly reduced the risk-weighting on the referenced pool of assets by 75%.
Net interest income for Huntington Bancshares grew by 2%, driven by a 1.7% increase in average earning assets. This growth was attributed to a rise in deposits with banks, which went up by 5.5% or $0.6 billion, and loans, which saw a 2.1% increase. Meanwhile, securities holdings experienced a slight decrease of 0.4%. For comprehensive analysis of Huntington’s financial metrics and peer comparison, access the detailed Pro Research Report available exclusively on InvestingPro, part of our coverage of 1,400+ US equities.
In other recent news, Huntington Bancshares has been the focus of several analysts, highlighting its financial performance and future prospects. Baird analysts raised their price target for Huntington Bancshares to $18, maintaining an Outperform rating, citing the bank’s potential for above-average pre-provision net revenue growth and net interest margin expansion. Similarly, Citi analysts adjusted their price target to $20, down from $21, while retaining a Buy rating, as they anticipate the bank to perform at the higher end of their projected net interest income growth. DA Davidson analysts reaffirmed their Buy rating with a $20.50 price target, emphasizing the bank’s commitment to organic growth and its potential for strong revenue growth.
Truist Securities also increased their price target to $21 and maintained a Buy rating, noting the bank’s expected earnings growth and potential for share repurchase programs. The firm raised Huntington’s estimated earnings per share for 2025 and 2026, driven by expected growth in loans, deposits, and fees. Analysts noted that Huntington Bancshares is focusing on organic growth rather than mergers and acquisitions, aligning with its strategic goals. The bank’s management has indicated that share repurchases may resume in 2026, contributing to its financial strategy. Overall, analysts have expressed confidence in Huntington Bancshares’ growth potential and strategic initiatives, underscoring a positive outlook for the bank’s future performance.
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