This analysis delivers a comprehensive overview of the preferred stock offerings from Huntington Bancshares Incorporated. It delves into the specific characteristics of HBANL, HBANM, and HBANP, assessing their current yield, the extent of their call protection, and the inherent risks tied to each. The goal is to provide investors with a clear understanding of these instruments within the context of the current financial landscape.
Detailed Review of Huntington Bancshares Preferred Stocks
Huntington Bancshares Incorporated has several preferred stock offerings that cater to different investor profiles. Among these, HBANL stands out with a 6.875% coupon rate and robust call protection extending until 2028. This combination makes HBANL particularly appealing for those prioritizing a steady income stream over an extended period. Despite a yield-to-call (YTC) of 5.7%, its long-term call protection offers a degree of stability not found in other options.
HBANM, another preferred stock from Huntington Bancshares, presents a different scenario. With a 5.7% coupon rate, it is currently callable, implying that it could be redeemed by the issuer in the near future. Given its lower coupon compared to HBANL, it would likely be among the first to be called back by the company, should interest rates or market conditions favor such a move. Investors considering HBANM should be aware of this immediate call risk.
Lastly, HBANP offers the most significant long-term call protection among the three, even as its call protection is set to expire next spring. This feature positions HBANP as a favorable choice for investors seeking enduring stability and income. This preferred stock has received a 'Buy' rating due to its advantageous call protection profile.
In summary, the preferred stock offerings from Huntington Bancshares provide a range of choices for investors. HBANL offers a high coupon with considerable call protection, making it suitable for income-seeking individuals. HBANM, while having a lower coupon and being immediately callable, might appeal to those with a different risk tolerance. HBANP, with its extended call protection, emerges as a compelling option for investors focused on long-term value and stability. Each option presents distinct advantages and considerations that investors should weigh against their personal financial objectives and risk appetite.