Hsbc Holdings PLC Raises Stake in Old National Bancorp $ONB

Key Points

• Hsbc Holdings PLC more than doubled its Old National Bancorp stake in the second quarter, increasing holdings by 102.6% to 148,729 shares valued at approximately $3.85 million. Institutional investors collectively own 83.66% of ONB.
• Old National Bancorp exceeded quarterly expectations, reporting $0.65 EPS versus the $0.63 consensus and $726.86 million in revenue, up 13.2% year over year. The bank also declared a $0.145 quarterly dividend, representing a 2.3% yield.
• Analysts maintain a generally positive outlook, with nine Buy ratings and three Holds producing a “Moderate Buy” consensus and an average price target of $29.36, above the reported $25.60 share price.

Hsbc Holdings PLC increased its holdings in shares of Old National Bancorp (NASDAQ:ONB - Free Report) by 102.6% during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 148,729 shares of the bank's stock after acquiring an additional 75,326 shares during the period. Hsbc Holdings PLC's holdings in Old National Bancorp were worth $3,852,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also bought and sold shares of ONB. BlackRock Inc. purchased a new position in Old National Bancorp in the second quarter worth about $1,215,819,000. The Manufacturers Life Insurance Company bought a new stake in shares of Old National Bancorp during the second quarter valued at approximately $134,610,000. Bank of America Corp DE bought a new stake in shares of Old National Bancorp during the second quarter valued at approximately $100,301,000. William Blair Investment Management LLC purchased a new position in Old National Bancorp in the 2nd quarter worth approximately $99,283,000. Finally, Bank of New York Mellon Corp purchased a new position in Old National Bancorp in the 2nd quarter worth approximately $90,226,000. Hedge funds and other institutional investors own 83.66% of the company's stock.

Old National Bancorp Stock Up 0.7%

Shares of ONB stock opened at $25.60 on Friday. Old National Bancorp has a 12 month low of $19.39 and a 12 month high of $27.36. The stock has a market cap of $9.79 billion, a P/E ratio of 11.38 and a beta of 0.83. The company has a current ratio of 0.94, a quick ratio of 0.94 and a debt-to-equity ratio of 0.95. The company has a 50 day simple moving average of $26.30 and a two-hundred day simple moving average of $24.53.

Old National Bancorp (NASDAQ:ONB - Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The bank reported $0.65 earnings per share for the quarter, topping the consensus estimate of $0.63 by $0.02. The business had revenue of $726.86 million for the quarter, compared to analysts' expectations of $716.25 million. Old National Bancorp had a net margin of 21.60% and a return on equity of 11.80%. The company's revenue was up 13.2% compared to the same quarter last year. During the same quarter last year, the company posted $0.53 EPS. On average, research analysts expect that Old National Bancorp will post 2.6 earnings per share for the current year.

Old National Bancorp Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Saturday, September 5th will be paid a $0.145 dividend. The ex-dividend date of this dividend is Friday, September 4th. This represents a $0.58 annualized dividend and a dividend yield of 2.3%. Old National Bancorp's dividend payout ratio (DPR) is 25.78%.

Wall Street Analyst Weigh In

Several analysts have commented on ONB shares. TD Cowen increased their target price on Old National Bancorp from $30.00 to $31.00 and gave the company a "buy" rating in a research note on Thursday, July 23rd. Barclays boosted their price target on Old National Bancorp from $30.00 to $31.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 7th. Royal Bank Of Canada upped their price target on Old National Bancorp from $28.00 to $29.00 and gave the company a "sector perform" rating in a report on Thursday, July 23rd. Raymond James Financial began coverage on Old National Bancorp in a research report on Tuesday, July 7th. They set a "market perform" rating on the stock. Finally, UBS Group started coverage on Old National Bancorp in a research report on Tuesday, July 7th. They issued a "buy" rating and a $32.00 target price for the company. Nine equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, Old National Bancorp has a consensus rating of "Moderate Buy" and a consensus target price of $29.36.

Insider Activity

In other news, CEO Chady Alahmar sold 11,771 shares of Old National Bancorp stock in a transaction dated Thursday, July 30th. The stock was sold at an average price of $26.41, for a total transaction of $310,872.11. Following the transaction, the chief executive officer directly owned 63,531 shares of the company's stock, valued at $1,677,853.71. The trade was a 15.63% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Nicholas Chulos sold 20,000 shares of the business's stock in a transaction that occurred on Tuesday, July 28th. The shares were sold at an average price of $26.66, for a total value of $533,200.00. Following the transaction, the insider owned 53,544 shares of the company's stock, valued at approximately $1,427,483.04. This trade represents a 27.19% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.72% of the stock is owned by company insiders.

Old National Bancorp Company Profile

Old National Bancorp NASDAQ: ONB is a regional financial services holding company headquartered in Evansville, Indiana. Through its principal subsidiary, Old National Bank, the company provides banking and wealth management services to individuals, families, businesses and institutions.

Its offerings include checking and savings accounts, consumer and commercial lending, mortgages, treasury and cash management services, credit and debit cards, online and mobile banking, and investment and wealth management services.

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