The Columbus, Ohio-headquartered Huntington Bancshares Incorporated (NASDAQ:HBAN) reported Q1 earnings on April 17. The regional lender reported an in-line quarter but announced a 25% increase in HBAN’s quarterly dividend to $0.05 from a previous $0.04. This gives the stock a 2.8% yield based on recent market prices, with the first dividend payable on July 1.
Loan growth continued at Huntington Bancshares Incorporated (NASDAQ:HBAN), with modest acceleration in residential mortgages and home equity loans during the January – March period. Net interest margin, commonly referred to as NIM, should not fall below 3.3% during the full year 2013. NIM is a key component of bank profitability, equal to the difference between interest paid by lenders and interest owed to depositors.
Huntington Bancshares Incorporated (NASDAQ:HBAN) also proudly announced in March that it exceeded its $4 billion lending commitment to small businesses, originally announced following the recession in 2010. According to the company, more than 24,000 small businesses in six states obtained loans during the three-year program.
Walgreen Company (NYSE:WAG)
Billionaire and board member Stefano Pessina purchased 83,299 shares of Walgreen Company (NYSE:WAG) in a single transaction for $48.62 per share. The total transaction value amounted to a whopping $4.05 million when the stock was bought on April 19.
Pessina is ranked #189 on Forbes list of billionaires and is ranked #6 within his home country. The 71-year old Italian amassed his fortune via the growth of his pharmaceutical wholesale and drugstore business in Europe. Pessina became unified with Walgreen Company (NYSE:WAG) during summer 2012 when WAG announced the purchase of Alliance Boots, a multinational drugstore chain in which Pessina served as chairman since 2007.
On March 19, Walgreen Company (NYSE:WAG) announced a 10-year partnership with AmerisourceBernstein, a pharmaceutical supply chain company that should reaffirm Walgreen’s leadership position in the drugstore industry. Both firms are expected to achieve cost synergies from the deal.
Wall Street immediately viewed the announcement favorably. Analysts at JPMorgan upgraded Walgreen to “overweight” with a $55 price target on March 20. Similarly, Citigroup Inc (NYSE:C) took Walgreen Company (NYSE:WAG) to “buy” from a previous “sell” rating, reversing course and applying a $51 price target.
Walgreen Company (NYSE:WAG) CFO Wade Miquelon told reporters in April that he “feels good” about the announced AmerisourceBergen Corp. (NYSE:ABC) deal, noting that his company is already ahead of its benchmarks with the Alliance Boots integration.
Foolish Bottom Line
While there are numerous reasons for corporate executives to sell, insider buying takes place for only one reason. Furthermore, Bank of America Corp (NYSE:BAC), Huntington Bancshares Incorporated (NASDAQ:HBAN), and Walgreen Company (NYSE:WAG) have a strong fundamental case for investment even with the broader market at 52-week highs.
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The article 3 Must-Own Stocks from Barron’s Insider Buying List originally appeared on Fool.com.
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