Old National Bancorp (ONB) Soars 1.45% on Truist Buy Rating

Old National Bancorp (ONB) shares surged 1.45% today, marking the second consecutive day of gains, with a total increase of 4.91% over the past two days. The stock price reached its highest level since March 2025, with an intraday gain of 2.03%.

The strategy of buying Old National Bancorp (ONB) shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a maximum drawdown of -11.4% in May 2024 and a relatively stable annualized return of approximately 7.5%.

Maximum Drawdown: The maximum drawdown during this period was -11.4% in May 2024, which occurred after ONB's stock reached a high. This decline was relatively shallow compared to the overall market volatility.

Annualized Returns: The annualized return for this strategy was approximately 7.5% over the past 5 years. While this is not a high return, it is stable and reflects consistent growth.

Comparison with Market Index: The strategy's returns slightly underperformed the NASDAQ Composite Index's annualized returns over the same period, which was around 9.5%. However, the NASDAQ Index experienced more significant volatility, with a maximum drawdown of -32.5% during this time.

In conclusion, holding ONB shares for 1 week after they reached a high is a conservative strategy that provides stability, as evidenced by the moderate drawdown and consistent returns. It is suitable for investors seeking regular income with lower risk, although the overall performance may not be highly disruptive. This backtest demonstrates that ONB's stock can provide stable returns even after a recent high, making it a reasonable investment for those looking for consistent growth over a shorter holding period.

Truist has initiated coverage on Old National Bancorp with a Buy rating and a price target of $26. This move is likely to boost investor confidence and could positively influence the stock price. Analysts' positive outlook often translates into increased buying activity, which can drive up the stock's value.

RBC Capital has adjusted its price target for Old National Bancorp, lowering it from $26 to $23. This adjustment reflects the analysts' revised expectations for the company's future performance. Such changes can impact investor sentiment and may lead to fluctuations in the stock price as investors reassess their positions.

Old National Bancorp has successfully completed the closing of its partnership with Bremer Bank. This strategic alliance is expected to enhance the company's operational capabilities and financial performance. The completion of this partnership could have a positive impact on the stock price, as investors anticipate improved business prospects and potential growth opportunities.