Huntington Bancshares (HBAN) AI Stock Analysis

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Huntington Bancshares

(NASDAQ:HBAN)

Rating:79Outperform

Price Target:

$19.00

▲(9.20%Upside)

The strong financial performance and technical indicators are the most significant factors contributing to the high score. The company is well-positioned with robust growth metrics and strategic initiatives, despite some economic uncertainties and operational challenges. The solid dividend adds to its attractiveness, especially for income investors.

Positive Factors

Growth Strategies

Significant investments have been made to engineer a banking franchise that should deliver superior growth and franchise defensibility as a diversified regional bank.

Loan and Deposit Growth

HBAN is expected to generate meaningful alpha due to peer leading loan and deposit growth, as well as ongoing productivity and efficiency improvements.

Net Interest Margin Expansion

HBAN's ability to match fund its loan growth with strong deposit growth is likely to expand NIM into 2026.

Negative Factors

Loan Growth Momentum

Management noted that their pipeline heading into 2Q is almost at the same level as 1Q and they are not seeing any material drop in loan growth momentum.

Price Target Adjustment

Maintain BUY rating, but lowering PT to $18 (was $19).

Huntington Bancshares (HBAN) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$25.03B

Dividend Yield3.56%

Average Volume (3M)27.01M

Price to Earnings (P/E)13.2

Beta (1Y)1.17

Revenue Growth7.55%

EPS Growth17.46%

CountryUS

Employees20,092

SectorFinancial

Sector Strength81

IndustryBanks - Regional

Share Statistics

EPS (TTM)0.34

Shares Outstanding1,456,811,600

10 Day Avg. Volume29,670,403

30 Day Avg. Volume27,010,586

Financial Highlights & Ratios

PEG Ratio1.73

Price to Book (P/B)1.13

Price to Sales (P/S)0.00

P/FCF Ratio13.73

Enterprise Value/Market Cap1.04

Enterprise Value/Revenue0.55

Enterprise Value/Gross Profit3.64

Enterprise Value/Ebitda2.20

Forecast

1Y Price Target

$18.35

Price Target Upside5.46% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering18

Huntington Bancshares Business Overview & Revenue Model

Company DescriptionHuntington Bancshares Incorporated is a regional bank holding company headquartered in Columbus, Ohio. It operates through its subsidiary, The Huntington National Bank, providing a comprehensive range of banking services. The company offers retail banking, commercial banking, and wealth management services across its network of branches primarily located in the Midwest region of the United States. Its core products and services include checking and savings accounts, mortgage and consumer loans, credit cards, and various investment and insurance solutions.

How the Company Makes MoneyHuntington Bancshares generates revenue primarily through interest income and non-interest income. Interest income is derived from loans and lease financing, where the company earns money from the interest charged on consumer and commercial loans, including mortgages, personal loans, and business loans. Non-interest income comes from fees and service charges related to banking services, such as account maintenance fees, transaction fees, and overdraft charges. Additionally, Huntington earns income from investment management services, trust services, and insurance product sales. The bank also benefits from strategic partnerships and acquisitions that enhance its product offerings and expand its market reach, contributing to its financial performance.

Huntington Bancshares Earnings Call Summary

Earnings Call Date:Apr 17, 2025

(Q1-2025)

% Change Since: 32.42%|

Next Earnings Date:Jul 18, 2025

Earnings Call Sentiment Positive

The earnings call presented a strong performance in loan and deposit growth, revenue and profit increases, and strategic execution. However, some caution was noted regarding economic uncertainty and a rise in criticized assets. Overall, the positive outcomes outweigh the challenges, indicating confidence in future performance.

Q1-2025 Updates

Positive Updates

Strong Loan and Deposit Growth

Average loans grew by $9 billion year over year, and average deposits increased by $11 billion year over year. Primary bank relationships grew by 3% in consumer and 4% in business banking over the previous year.

Robust Fee Revenue Increase

Fee income increased over 6% year over year, led by payments, wealth, and capital markets.

Improved Capital Levels

Adjusted CET1 grew by 20 basis points from the prior quarter to 8.9%. A $1 billion multiyear share repurchase authorization was approved.

Significant Revenue and PPNR Growth

10% year over year revenue growth and 24% year over year PP and R growth. Earnings per common share of $0.34 and ROTCE at 16.7% for the quarter.

Continued Credit Performance

Net charge-offs decreased four basis points in the quarter. Allowance for credit losses was 1.87%.

Successful Execution on Strategic Initiatives

Investments in new verticals and geographic expansion in North and South Carolina and Texas contributed significantly to growth.

Negative Updates

Economic Uncertainty

There is more uncertainty in the economic outlook for 2025, with potential headwinds that could arise from various economic scenarios.

Criticized Asset Ratio Increase

The criticized asset ratio increased to 3.98%.

Commercial Real Estate Balances Decline

Commercial real estate balances declined by $261 million.

Company Guidance

During the Huntington Bancshares Incorporated First Quarter 2025 Earnings Call, the guidance provided highlighted a robust first quarter performance, with significant growth across several metrics. The company recorded a year-over-year revenue increase of 10% and a 24% rise in pre-provision net revenue (PPNR), reaching $783 million. Earnings per share stood at $0.34, with a return on tangible common equity (ROTCE) of 16.7%. Average loan balances grew by $2.7 billion, or 2.1%, from the prior quarter, while average deposits increased by $2.2 billion, or 1.4%. The company maintained strong credit quality, reflected in net charge-offs of 26 basis points and an allowance for credit losses of 1.87%. Additionally, Huntington Bancshares approved a $1 billion share repurchase program and reported a 20 basis point increase in adjusted CET1 to 8.9%. For 2025, the company expects loan growth of 5% to 7%, deposit growth of 3% to 5%, net interest income growth of 5% to 7%, and fee revenue growth within the 4% to 6% range. The guidance reflects a strategy focused on sustaining growth through disciplined expense management, continued investments in fee revenue, and strong credit performance, while remaining prepared for potential economic uncertainties.

Huntington Bancshares Financial Statement Overview

Summary

Huntington Bancshares showcases solid revenue growth and profitability, supported by a robust balance sheet with prudent leverage and strong cash flow generation. However, there are opportunities for improvement in operational efficiencies.

Income Statement

Positive

Huntington Bancshares shows solid revenue growth with a notable increase in total revenue from prior periods. The company exhibits healthy gross and net profit margins, indicating efficient operations. However, EBIT and EBITDA margins have faced some compression, suggesting potential cost management issues or increased competition.

Balance Sheet

Positive

The balance sheet is robust with a strong equity base. The Debt-to-Equity ratio is low, reflecting conservative leverage practices. However, the Equity Ratio shows a lower proportion of equity financing, suggesting potential reliance on liabilities for asset funding.

Cash Flow

Positive

Cash flow statements are strong, with consistent free cash flow generation. The growth in free cash flow is commendable, and the operating cash flow to net income ratio is stable, highlighting efficient cash conversion from earnings. This suggests a well-managed cash flow position despite fluctuations in investing and financing activities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.10B	11.96B	10.78B	7.95B	6.08B	5.24B
Gross Profit	7.12B	6.96B	6.90B	6.96B	5.97B	3.77B
EBITDA	3.19B	3.02B	3.18B	3.25B	1.98B	1.34B
Net Income	2.05B	1.94B	1.95B	2.24B	1.29B	817.00M
Balance Sheet
Total Assets	209.60B	204.23B	189.37B	182.91B	174.06B	123.04B
Cash, Cash Equivalents and Short-Term Investments	19.20B	17.21B	13.70B	7.43B	6.29B	7.02B
Total Debt	18.76B	16.57B	13.01B	11.71B	7.44B	8.54B
Total Liabilities	189.11B	184.45B	169.97B	165.14B	154.75B	110.05B
Stockholders Equity	20.43B	19.74B	19.35B	17.73B	19.30B	12.99B
Cash Flow
Free Cash Flow	1.68B	1.67B	2.52B	3.81B	1.81B	1.20B
Operating Cash Flow	1.85B	1.81B	2.66B	4.03B	2.06B	1.32B
Investing Cash Flow	-12.01B	-12.12B	-3.00B	-11.61B	-3.96B	-8.64B
Financing Cash Flow	13.29B	13.02B	3.77B	8.76B	827.00M	12.74B

Huntington Bancshares Technical Analysis

Technical Analysis Sentiment

Positive

Last Price17.40

Price Trends

50DMA

15.53

Positive

100DMA

15.15

Positive

200DMA

15.52

Positive

Market Momentum

MACD

0.43

Negative

RSI

75.82

Negative

STOCH

96.07

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HBAN, the sentiment is Positive. The current price of 17.4 is above the 20-day moving average (MA) of 16.12, above the 50-day MA of 15.53, and above the 200-day MA of 15.52, indicating a bullish trend. The MACD of 0.43 indicates Negative momentum. The RSI at 75.82 is Negative, neither overbought nor oversold. The STOCH value of 96.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HBAN.

Huntington Bancshares Risk Analysis

Huntington Bancshares disclosed 32 risk factors in its most recent earnings report. Huntington Bancshares reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Huntington Bancshares Peers Comparison

Overall Rating

UnderperformOutperform

Sector (67)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FITB	80 Outperform	$28.33B	13.48	11.71%	3.43%	5.75%	0.68%
HBAN	79 Outperform	$25.03B	13.24	10.30%	3.56%	7.55%	17.46%
RF	76 Outperform	$21.73B	11.67	11.33%	4.07%	1.05%	12.14%
MTB	73 Outperform	$32.11B	13.40	9.39%	2.70%	1.20%	1.12%
KEY	69 Neutral	$19.58B	1,663.64	0.14%	4.50%	-12.50%	-120.77%
CFG	68 Neutral	$19.99B	14.68	6.37%	3.57%	-2.37%	13.92%
Sector *	67 Neutral	$16.84B	11.72	9.71%	3.76%	11.61%	-9.60%

* Financial Sector Average

Performance Comparison

HBAN

Huntington Bancshares

17.40

5.07

41.12%

FITB

Fifth Third Bancorp

43.13

8.39

24.15%

KEY

KeyCorp

18.20

4.91

36.95%

MTB

M&T Bank

200.06

57.69

40.52%

Regions Financial

24.55

5.85

31.28%

CFG

Citizens Financial

47.03

13.16

38.85%

Huntington Bancshares Corporate Events

Dividends

Huntington Bancshares Declares Quarterly Preferred Stock Dividend

Positive

Jun 27, 2025

On June 27, 2025, Huntington Bancshares announced that its Board of Directors declared a quarterly cash dividend for its 5.70% Series I Non-Cumulative Perpetual Preferred Stock, amounting to $356.25 per share, payable on September 2, 2025, to shareholders recorded by August 15, 2025. This move reflects Huntington’s ongoing commitment to providing returns to its shareholders and may enhance its attractiveness to investors seeking stable income through dividends.

The most recent analyst rating on (HBAN) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Huntington Bancshares stock, see the HBAN Stock Forecast page.

Business Operations and Strategy

Huntington Bancshares to Present at Financials Conference

Positive

Jun 11, 2025

Huntington Bancshares announced its participation in the 2025 Morgan Stanley US Financials Conference on June 11, 2025, where CFO Zach Wasserman will present. The company highlights its strategic focus on organic growth, robust profit growth, and strong credit performance, positioning itself to outperform in various economic scenarios.

The most recent analyst rating on (HBAN) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Huntington Bancshares stock, see the HBAN Stock Forecast page.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 28, 2025