logo
  Join        Login             Stock Quote

Huntington Bancshares Incorporated (HBAN): Steady Insiders Buy - Again

 May 01, 2014 01:13 PM
 


Insider buying really slowed last week. Consumer confidence dipped last week, and it looks as if corporate confidence agrees with Main Street.  Only 53 companies, as we measure it, reported records from directors and executive team members buying.

But that doesn't mean there aren't companies worth highlighting. This week insider focus is Huntington Bancshares Incorporated (NASDAQ:HBAN).  Huntington is a multi-state diversified regional bank holding company. Through its subsidiaries, including its bank subsidiary, The Huntington National Bank (the Bank), Huntington is engaged in providing full-service commercial, small business, consumer banking services, mortgage banking services, automobile financing, equipment leasing, investment management, trust services, brokerage services, customized insurance programs, and other financial products and services.

[Related -Why I Like Financial Stocks For 2014]

Last week, two HBAN insiders with previous activity headed to the open market, just like you and me, and purchased shares directly and indirectly (trusts, spouse account…). Chairman and Chief Executive Officer, Stephen D. Steinour and Director, David Porteous bought a combined 16,712 shares for a total investment of $156,945. That works out to an average price of $9.39, which means you can own regional bank a little cheaper!

Both men, as we mentioned already, have previous HBAN transactions, but we'll focus on the CEO. Unlike Porteous who only bought stock, Steinour bought and sold.  In October 2012, he bought stock at $6.32, again in January 2013 at $7.04, February 2013 at $6.80,  and in April 2013 between $6.94 and $7.49.

[Related -Dividend Roundup: CFFN, HBAN, MAT, SHW, SON, CCL]

Steinour's next move was to sell $118,749 of HBAN at $8.85 per share in February 2014 – maybe he wanted a fully-loaded Tesla Model S? Who knows? Nonetheless, he turned a profit from previous buys. What catches iStock's attention is the change of heart as the CEO reversed sentiment and resumed buying.  

It's fascinating to note that the pair of buyers, both of whom are sitting on profits from earlier activity, added more Huntington stock with HBAN trading at/near five-year highs for price-to-book (P/B) and price-to-sales (P/S) ratios.

Since 2009, the Columbus, Ohio based bank's average P/B ratio was 1.06. Today, investors are paying 1.31 times book, which isn't all that far from the half-decade high of 1.46. Meanwhile, the P/S range for the past five-years is 0.45 to 3.17 times sales with a norm of 1.84. Today, the company is trading with a price-to-sales ratio of 2.86.

Considering the history of HBAN heading higher after Porteous and Steinour stepping in, the pair must not be too concerned with current P/B and P/S levels. Perhaps, it's the 2.2% dividend that attracts the men. At the moment, Huntington pays a dividend of $0.20 per, but it has been slowly rising since March 2009. In 2008, the annual dividend was $1.06 per share. It's possible that shareholders could be in-line for significant raises if the Midwest bank's fortunes continue to improve.

Overall: Porteous and Steinour have been steady believers in Huntington Bancshares Incorporated (NASDAQ:HBAN). Their continued buying, despite elevated valuations, has to give shareholders confidence that more is to come from HBAN; perhaps in the form of higher dividends down the line. 

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageIntegrated Device Technology Inc. (IDTI) Q1 Earnings Preview: Another Beat and Pop?

Integrated Device Technology Inc. (NASDAQ:IDTI) will issue first quarter 2015 financial results on July 28, read on...

article imageHerbalife Ltd. (NYSE:HLF) Q2 Earnings Preview: The Potential To Shock?

Herbalife Ltd. (NYSE:HLF) will release its second quarter 2014 financial results after the close of trading read on...

article imageHealth Net, Inc. (HNT): Potential to Be Huge Winners Says Bank of America

As of this keystroke, Health Net, Inc. (NYSE: HNT) shares are up around 4% on the day. The managed health read on...

article imageHomeAway, Inc. (AWAY) Q2 Earnings Preview: Top and Bottom Line Bullish Surprise?

HomeAway, Inc. (NASDAQ:AWAY) will report its financial results for the second quarter ended June 30, 2014 read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.