Huntington Bancshares, a leading financial institution, is poised to ride the wave of the artificial intelligence (AI) boom with promising revenue growth and strong institutional confidence. As the global AI market is projected to reach over $1.81 trillion by 2030, investors are eager to tap into the potential of this revolutionary technology. Here are five top AI stocks to consider for 2023.
Huntington Bancshares has been performing well in the market, with a recent gain of 0.82%. In the past five days, the company has consistently traded in the green and reached its highest point of $11.00 per share on November 17, 2023, registering a 0.81% increase. While the stock has experienced a year-to-date performance decrease of -21.99%, it has shown a positive growth rate of 7.11% over the past five days. Additionally, the number of shares sold short is at 33.83 million, which would take approximately 2.05 days to cover the short interests.
Market analysts have assigned a consensus price target of $11.84 to Huntington Bancshares, indicating a potential rise of 7.09% from its current value. The low price target for the stock is projected at $10.00, while the high target is set at $13.00. If the stock reaches its projected high, it would mark a decrease of -18.18% from its present price. Conversely, reaching the targeted low would result in a gain of 9.09%.
Statistics reveal that Huntington Bancshares is performing slightly lower compared to other players in the industry. Over the past six months, the company’s shares have increased by 8.16%, with an annual growth rate of -8.67%. In contrast, the industry’s growth rate stands at -3.80%. Huntington Bancshares has also adjusted its revenue forecast for fiscal year 2023, expecting a decrease of -35.70% in the current quarter and a -25.60% decrease in the next quarter. However, the company anticipates a 2.10% rise in revenue growth compared to the previous financial year.
Analysts estimate the company’s current quarter revenue to be approximately $1.8 billion, while the next quarter is expected to generate the same amount. In the corresponding quarters of the previous year, Huntington Bancshares reported sales of $1.97 billion and $1.93 billion, respectively. The projected sales decline for the current and next quarters is -8.60% and -6.80%, respectively.
Considering the company’s earnings performance, there has been a 7.63% annual growth rate over the past five years. However, in 2023, Huntington Bancshares is expected to experience a decrease of -6.81% in earnings growth, with a projected -2.15% growth rate over the next five years.
Investors are eagerly awaiting Huntington Bancshares’ next quarterly report, which is expected between January 18 and January 22. Despite facing challenges due to mounting debt, there is confidence that the company will announce better current-quarter dividends.
Insiders hold 0.91% of the company’s total shares, while institutional investors own 81.54%. The stock has a share float percentage of 82.29%. Vanguard Group Inc. is the top institutional holder, with 172.07 million shares worth $1.9 billion, representing 11.88% of the outstanding shares. Blackrock Inc. is the second largest institutional holder, with approximately 130.34 million shares valued at $1.44 billion, accounting for 9.00% of the outstanding shares.
Among mutual funds, Vanguard Total Stock Market Index Fund and Vanguard 500 Index Fund are the top two holders of Huntington Bancshares’ shares. As of June 29, 2023, the former fund manager held 44.93 million shares worth $494.92 million, equivalent to 3.10% of the outstanding shares. The latter fund manager possessed 34.35 million shares, amounting to around $378.36 million or 2.37% of the company’s stock.
As the AI revolution gains momentum, Huntington Bancshares is well-positioned to capitalize on the opportunities presented by this booming market. With promising revenue growth projections and institutional confidence, the company is expected to deliver positive results for investors.