Huntington's shares closed at $6.60 Wednesday, returning 22% year-to-date, following a 19% decline during 2011.
The shares trade for 1.2 times their reports June 30 tangible book value of $5.49, and for 10 times the consensus 2013 earnings estimate of 65 cents. The consensus 2012 EPS estimate is 64 cents.
Based on a four-cent quarterly payout, the shares have a dividend yield of 2.42%.
Jefferies analyst Ken Usdin rates Huntington a "Buy," with a $7.50 price target, and said that "overall, results were solid for the quarter, with the one slight pushback likely to be credit quality," as "net charge-offs increased $1mm (to $84mm) and nonperformers fell $4mm (to $524mm)."
The analyst noted that "nonperforming inflows increased to $221mm (from $135mm), but HBAN expects credit quality to continue to experience improvement."
With Huntington buying back six million shares during the second quarter, the company is authorized to buy back another $140 million worth of shares, and Usdin expects "HBAN to use the majority of the buyback authorization over the next 9 months with the total payout (buyback and dividends) in the 50%-60% range."
Interested in more on Huntington Bancshares? See TheStreet Ratings' report card for this stock.
Written by Philip van Doorn in Jupiter, Fla.