Old National Bancorp (ONB) has suffered over the past 12 months as market volatility and the economic impact of the coronavirus pandemic have hit financial stocks hard. However, recent disclosures by the Securities and Exchange Commission (SEC) indicate that Valeo Financial Advisors LLC may see value in the distressed Indiana-based regional bank. increase.
Valeo increased its stake in ONB by 1,358.5% in the first quarter of 2023, according to the latest filings. The fund purchased an additional 294,777 shares during the same period and now owns 316,475 ONB shares. For Valeo Financial Advisors LLC, this represents an equity investment in ONB worth $4,564,000.
It is possible that Valeo sees untapped potential in Old National Bancorp’s current operations and that it sees long-term growth prospects in broader macroeconomic trends in Indiana and beyond. However, it remains unclear what specific beliefs drove the company to make such a huge investment.
In other news related to Old National Bancorp insiders buying up its stock, CEO James C. Ryan III and director Kathryn Haley announced in May this year that They acquired 8,200 and 7,500 shares respectively. Total insider investment was valued at $317,679 as they were purchased at an average of $13.66 per share.
There’s no clear consensus on what these insider acquisitions mean for investors interested in ONB stock, but now might be a good time to dig deeper into the regional bank’s balance sheet and reports.
Despite challenging conditions in last year’s market volatility, Old National Bancorp remains well positioned thanks to strong returns on both net profit margin (20.52%) and return on equity (9.05%) keeps Additionally, a price-to-earnings ratio of just 6.66 suggests the market may be undervaluing his ONB, with investments such as Valeo Financial Advisors LLC and Old National Bancorp insiders. The house may have already noticed.
While short-term profitability measures for Old National Bancorp’s stock remain below its 52-week high of $20.19 per share, the potential for higher long-term growth and strong financials are giving ONB a financial edge. Interesting prospects for the sector.
As always, investors should evaluate all available data and consult a licensed financial advisor before making any purchase decision. But for those seeking an under-appreciated opportunity in the Midwest’s regional banking sector, ONB is certainly worth considering.
Old National Bancorp
ONB
strong buy
Updated: 2023/06/27
Institutional investors increase Old National Bancorp stake after CEO and insider takeover
Old National Bancorp (ONB) has experienced recent moves in its institutional investor and hedge fund positions. Verdence Capital Advisors LLC, Bayesian Capital Management LP, Indiana Trust & Investment Management CO, Phillips Financial Management LLC, and the Michigan Retirement System have all increased their stakes in ONB over the past several quarters. This will allow hedge funds and other institutional investors to own up to 77.40% of the company’s shares.
Recently, several brokerage firms have also commented on ONB. StockNews.com rated ONB as a sell for a variety of reasons detailed in its research report released May 18. UBS Group set an initial rating of Neutral on March 15 with a price target of $16.00. Keefe, Bruyette & Woods lowered its price target from $22.00 to $19.00 on April 6 while maintaining its ‘outperform’ rating, while The Street lowered its ONB rating to ‘b-‘ on May 5. to “c+”. The consensus price target for the majority of analysts is currently at $20.
Meanwhile, James C. Ryan III (CEO) acquired 8,200 shares of the company on May 4 at an average price of $12.22 per share, bringing his current total holdings to 625,066 shares, worth approximately $7,638,306.52. Thanks to his acquisition, which was revealed in an SEC filing earlier this month, Kathryn Haley (director) also bought an additional 7,500 shares in the same week, and insiders have sold about 310,000 shares in the past three months. Acquired 23,200 shares worth $7,000.
It recently released quarterly earnings data for the first quarter of 2023 on April 25th. Old National Bancorp reported earnings per share of $0.54 for the same period, but sales slightly beat analyst expectations, with net sales for the quarter of $457.84 million, according to experts. was expected to be $456 million (sales up nearly 57% year-over-year). . The net profit margin is 28.42%. Analysts expect Old National Bancorp to post annual earnings of $2.06 per share this year.
In addition, the company paid a quarterly dividend ($0.14 per share) on June 15 to shareholders as of June 1. On the ex-dividend date of May 31, that equates to an annualized dividend of $0.56, or a yield of about 4.18%.
