Stock Alert for Huntington Bancshares Inc. (HBAN)
  • Stock Alert for Huntington Bancshares Inc. (HBAN)
  • Stock Alert for Huntington Bancshares Inc. (HBAN)
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    Trade Alert for Huntington Bancshares Inc. (HBAN)

    Huntington Bancshares Inc. (HBAN) is a multi-state diversified regional bank holding company headquartered in Columbus, Ohio. Through its subsidiaries, the Company provides full-service commercial and consumer banking services, mortgage banking services, automobile financing, equipment leasing, investment management, trust services, brokerage services, customized insurance service programs, and other financial products and services.  Its over 600 banking offices are located in Indiana, Kentucky, Michigan, Ohio, Pennsylvania and West Virginia.  Selected financial services and other activities are also conducted in various other states.

    Share Statistics (29-Sept-11)

    FY2009 FY2010 % Chg Q22010 Q22011 % Chg
    Symbol HBAN Revenue, $Mn
    Current price $4.96 Gross marg.
    52wk Range: $4.46-$7.70 Oper. margin 13.2% 29.6%
    Avg Vol (3m): 17,100,200 Net margin
    Market Cap. 4.28B
    Shares Outstanding 863.32M EPS, $ -3.27 0.25 -107.6% 0.03 0.16 433.3%

    Source: Reuters.com, SEC Filings.

    Investment Highlights

    Shares of HBAN gained 8.7% in the last five days, though the stock dropped 2.7% in the last month.

    Year-to-date, the stock is down 11.7%.

    Shares of the regional bank holding company traded as much as 3.9% higher yesterday on volume of over 5.7 million shares. Over the past 52 weeks, the stock has ranged from a low of $4.46 to a high of $7.70. HBAN is currently trading above its 50-day average of $4.87 and below its 200-day moving average of $6.02.

    Goldman Sachs yesterday highlighted HBAN as one of the four banks that will outperform in the coming earnings season. According the report published by TheStreet.com, analysts believe that “while bank stocks are likely to remain highly correlated to the macro-economic events, the third quarter results are likely to sport the highest divergence in some time.” Mortgage banking revenues are expected to increase 30% to 40%, with HBAN, together with Wells Fargo (NYSE: WFC), New York Community Bancorp (NYSE: NYB) and JPMorgan (NYSE: JPM), being the biggest beneficiaries.

    Huntington Bank early this month has been recognized again by the Small Business Administration (SBA) as the No. 3 lender in the nation for the number of loans provided to small businesses.  In addition, the Company also maintained its standing as the No. 1 SBA lender in four of the six states in which it operates.

    Huntington Bank lent $1.1 billion to small businesses last year, meeting the bank’s plan to lend $4 billion to small businesses in the Midwest over a three-year period, with a stepped increase in small business lending through 2012 and beyond.

    Source:

    http://www.investquest.com/iq/h/hban/ne/news/hban091211.htm

    Financial Summary

    HBAN reported a net income of $145.9 million for the second quarter of 2011, up $19.5 million, or 15%, from $126.4 million in the previous quarter.  Drivers of the increase were a $17.7 million, or 3%, increase in fully-taxable equivalent revenue, reflecting an 8% increase in non-interest income partially offset by a slight decline in net interest income. Net income also benefited from a $13.6 million, or 28%, decline in provision for credit losses, as well as a $2.3 million, or 1%, decrease in non-interest expense.

    Earnings per common share in the current quarter were $0.16, up $0.02 per share, or 14%, from $0.14 per common share in the prior quarter. Net income in the year-ago quarter was $48.8 million, or $0.03 per common share.

    For the first six months of 2011, the Company reported net income of $272.4 million, or $0.30 per common share. This compared with net income of $88.5 million, or $0.04 per common share, for the comparable year-ago period.

    Source:

    http://www.investquest.com/iq/h/hban/ne/finnews/hban211.htm

    Financial Strength (29-Sept-2011)

    Company

    Industry

    Sector

    S&P 500

    Quick Ratio (MRQ) 0.00 0.25 0.77
    Current Ratio (MRQ) 0.00 0.50 1.14
    LT Debt to Equity (MRQ) 59.62 47.86 79.58 109.07
    Total Debt to Equity (MRQ) 98.13 180.63 171.24 145.95
    Interest Coverage (TTM) 0.00 0.34 24.21

    Source: Reuters.com, SEC Filings.

    Technical Analysis

    Source: http://stockcharts.com

    HBAN is within its Bollinger Bands. This is a normal condition suggesting that it is neither overbought nor oversold relative to the recent price action.

    HBAN’s MACD is currently indicating a weak bullish signal. Although the MACD is trending above the signal line, the indicator is still below 0, which suggests that the underlying moving averages are bearish.

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    Sept29-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
    Fifth Third Bancorp FITB 10.31 9.48 9.29 7.36 1.59 1.56
    JPMorgan Chase & Co. JPM 31.33 122.16B 6.60 5.88 1.21 1.19
    Regional – Midwest Banks Median       12.10 n/a 1.72 n/a
    Huntington Bancshares Inc. HBAN 4.97 4.29B 8.02 7.65 1.64 1.60

    Source: Thomson Financial

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