Overview of the Recent Transaction
On September 30, 2024, Fuller & Thaler Asset Management, Inc., a prominent investment management firm, executed a significant transaction involving the shares of Old National Bancorp (ONB, Financial). The firm reduced its holdings by 2,766,069 shares, resulting in a new total of 17,947,029 shares. This adjustment reflects a decrease of 13.35% in their position, with the shares being traded at a price of $18.66 each. This move has adjusted the firm's portfolio, where Old National now represents 1.44% of its total investments and 5.63% of all shares held in the bank.
Insight into Fuller & Thaler Asset Management
Founded in 1993 and based in San Mateo, California, Fuller & Thaler Asset Management is known for its employee-owned structure and a robust investment approach that focuses on behavioral finance. The firm manages over $2.8 billion across 61 discretionary accounts, primarily targeting high net worth individuals and institutional clients. Fuller & Thaler is heavily invested in the financial services sector, which constitutes nearly a quarter of its total asset allocations, followed by industrials and technology sectors. The firm's investment philosophy emphasizes a bottom-up, fundamental analysis approach, aiming to identify micro to small-cap growth and value stocks.
About Old National Bancorp
Old National Bancorp, headquartered in Evansville, Indiana, is a bank holding company with assets nearing $10 billion. It operates primarily across Indiana, Illinois, and Kentucky, offering a wide range of community banking services such as commercial lending, real estate loans, and investment advisory services. Currently, the company's market capitalization stands at $7.14 billion, with a stock price of $22.38, which is considered modestly overvalued with a GF Value of $18.22.
Impact of the Trade on Fuller & Thaler's Portfolio
The recent reduction in ONB shares by Fuller & Thaler has slightly decreased the firm's exposure to the financial sector, aligning with its strategic portfolio management objectives. The transaction, which had a -0.22% impact on their portfolio, signifies a rebalancing effort, possibly in response to the stock's current valuation and its performance metrics.
Financial and Market Performance of Old National Bancorp
Old National Bancorp has a PE Ratio of 13.56, indicating profitability with an ROE of 8.98% and an ROA of 1.02%. The stock has shown a significant year-to-date increase of 31.49% in its price. The GF Score of 72 suggests a likely average performance in the future, supported by a strong momentum rank but tempered by moderate scores in financial strength, profitability, and growth.
Comparative Sector Analysis and Market Context
Within the financial services sector, Old National Bancorp is a significant player, but it faces stiff competition from other banks and financial institutions. Fuller & Thaler's investment strategy, heavily weighted towards financial services, suggests a bullish outlook on the sector, despite the recent sell-off in ONB shares.
Other Notable Investors and Market Position
Other significant investors in Old National Bancorp include Fisher Asset Management, LLC, Richard Pzena (Trades, Portfolio), and First Eagle Investment (Trades, Portfolio), among others. These holdings indicate a strong interest in ONB from various corners of the investment community, highlighting its relevance in the financial sector.
Conclusion
Fuller & Thaler Asset Management's recent transaction involving Old National Bancorp shares represents a strategic portfolio adjustment. This move reflects broader market trends and the firm's ongoing assessment of its investment landscape. As the market evolves, such adjustments are crucial for maintaining portfolio health and alignment with overarching investment goals.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
