Considering Buying Huntington Bancshares Incorporated (HBAN)? Read This First

Analysts at Sandler O’Neill cut their rating on shares of Huntington Bancshares Incorporated (NASDAQ:HBAN) from Buy to Hold in their opinion released on November 29. Nomura analysts have downgraded their rating of HBAN stock from Buy to Neutral in a separate flash note to investors on November 13. Analysts at Wedbush downgraded the stock to a Neutral call from its previous Outperform stance, in a research note that dated back to November 02.

Huntington Bancshares Incorporated (NASDAQ:HBAN) short sellers believe it will decline in price. The most recent short interest data has been released for the November 15th settlement date, which shows a 1,625,718 share increase in total short interest for HBAN, to 25,676,986, a surge of 6.76% since October 31st. Average daily volume for Huntington Bancshares Incorporated at the November 15th settlement plunged to 11,962,054, as compared to 14,774,570 at the October 31st report. That brought days to cover to 2.146537, a 31.86% increase from the 1.627883 days to cover recorded at the prior short interest data release. You could look at analyst ratings. The average analyst recommendations at 2.3 suggests buying these shares. But the opinions of a small number of people, though sometimes influential, doesn’t always speak for the hundreds of thousands of traders on Wall Street.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Huntington Bancshares Incorporated (NASDAQ:HBAN)’s prospects. The earliest insider trade took place on 11/29/2018. Ransier Kathleen H parted with a total of 4.82 thousand shares of company at average share price of $14.53. The total for the sales was set at $70.03 thousand. After this transaction, the Director account balance stood at 158.35 thousand shares. The stock lost -5.85 percent since that insider sale. On 11/13/2018, Houston Helga, Senior Exec. V. P., sold 42.61 thousand shares at a price per share of $14.66. This removed 624.63 thousand shares from the insider’s fortune and the stock saw a -6.68 percent retreat in value since the news became public. This transaction left 444.6 thousand shares in the Senior Exec. V. P. account. On 10/30/2018, Director Neu Richard W performed a purchase transaction worth $93.69 thousand. This purchase at $13.88 each has added 6.75 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded -1.44 percent decrease since the transaction was reported. The insider now is left with 312.67 thousand shares remaining in the account. Steinour Stephen D, who performs the President, CEO & Chairman job, bought 17.49 thousand shares for $235.81 thousand. The acquisition occurred on 10/25/2018 was priced at $13.48 per share. The share price soared 1.48 percent since the reporting date. Steinour Stephen D now left with a stake of 593.78 thousand HBAN stock worth $8.12 million after the insider buying.

Huntington Bancshares Incorporated (HBAN) is expected to jump by 20.98 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $18-month high price target. This represents a whopping 31.58 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $16, which represents a return potential of 16.96 percent when compared to the closing price of the stock of $13.68 on Tuesday, December 04. The lowest price target for the stock is $15 — slightly more than 9.65 percent from HBAN’s current share price.

The shares are currently floating around the first support level of $13.37. Below this, the next support is placed in the zone of $13.06. Till the time, the HBAN stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 32.2 on daily chart, which may remain a cause for comfort. If the price breaks below $13.06 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $14.22 mark may result into a pull-back move towards $14.76 level.

HBAN shares dropped -0.8 points or -5.52 percent on Tuesday to $13.68 with a heavy trade volume of 17.249 million shares. After opening the session at $14.41, the shares went as high as $14.45 and as low as $13.6, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $14.4 billion and now has 1.05 billion shares outstanding. Huntington Bancshares Incorporated (HBAN) stock has lost -4.27 percent of market value in 21 trading days.

HBAN stock has a trailing 3-year beta of 1.27, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $1.14 a share in the trailing twelve months. The stock’s value has fallen -6.04 percent year to date (YTD) against a decline of -6.94 percent in 12 month’s time. The company’s shares still trade -17.59 percent away from its 1-year high of $16.60 and 4.19 percent up from 52-week low of $13.13. The average consensus rating on the company is 2.3, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of Huntington Bancshares Incorporated (HBAN) are trading at a P/E ratio of 19.52 times earnings reported for the past 12 months. The industry HBAN operates in has an average P/E of 19.02. Its P/E ratio went as low as 9.21X and as high as 18.79 over the 5-year span. Further, it is sporting a 3.81 on the Price-to-Sales ratio. Compare this with the industry average P/S of 5.73. 0 percent is the gross profit margin for Huntington Bancshares Incorporated and operating margin sits at 76.2 percent. Along with this, the net profit margin is 37.5 percent.

HBAN will be showing off its Q4 earnings on January 17. Analysts are forecasting revenue to climb 4.8 percent to $1.16B in the next fiscal quarter, while earnings are seen soaring by nearly 26.92 percent to $0.33 per share. History has shown that shares in Huntington Bancshares Incorporated have gone down on 19 different earnings reaction days and are predicted to add 0.02 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.33 per share, better than the $0.32, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $1.14B, worse than the $1.16B analysts expected. Earnings are estimated to increase by 23.4 percent this year, 12.04 percent next year and continue to increase by 19.3 percent annually for the next 5 years.