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Old National Bancorp (NASDAQ:ONB) stock soared to a 52-week high, reaching a price level of $22.83. This peak reflects a significant surge in the company's stock value, marking a remarkable 47.98% increase over the past year. Investors have shown increased confidence in the financial institution, propelling the stock to new heights amidst a dynamic market environment. The 52-week high serves as a testament to Old National Bancorp's robust performance and the positive sentiment surrounding its growth prospects and financial health.
In other recent news, Old National Bancorp has reported its third-quarter financial results for 2024, with earnings per share (EPS) meeting market expectations. The bank announced a GAAP EPS of $0.44 and an adjusted EPS of $0.46, bolstered by a 10.1% annualized growth in core deposits and a 4.1% increase in commercial loans. The tangible common book value per share also saw an 8% increase since the second quarter, marking a 21% rise year-over-year.
Despite a softer outlook for the fourth quarter due to interest rate changes, Old National Bancorp anticipates steady loan growth and net interest income (NII), maintaining a strong capital position. The bank also expects $2 billion in cash flows from its investment portfolio to boost NII. Additionally, the integration of CapStar is projected to yield annual savings of $30 million by the fourth quarter.
Amidst these developments, Old National Bancorp is focusing on long-term investments to sustain positive operating leverage. The bank plans to rebuild capital quickly, with potential for share buybacks next year. However, it is noteworthy that the bank expects a slight decline in fee income due to seasonal factors and softer mortgage activity.
InvestingPro Insights
Old National Bancorp's recent stock performance aligns with several key metrics and insights from InvestingPro. The company's stock is currently trading near its 52-week high, with a price that is 95.16% of its peak, confirming the strong momentum mentioned in the article. This upward trajectory is further supported by InvestingPro data showing impressive returns: a 15.71% gain over the last month and a substantial 53.08% total return over the past year.
InvestingPro Tips highlight that ONB has maintained dividend payments for 42 consecutive years, which may be contributing to investor confidence. Additionally, the company's profitability over the last twelve months and analysts' predictions of continued profitability this year could be driving factors behind the stock's strong performance.
For investors seeking a deeper understanding of ONB's valuation, InvestingPro calculates a fair value of $25.05, suggesting potential upside from the current trading levels. The platform offers 9 additional tips for Old National Bancorp, providing subscribers with a comprehensive analysis to inform their investment decisions.
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