Why Old National Bancorp (ONB) Is a Top Russell 2000 Stock Pick According to Analysts

Old National Bancorp (ONB), a holding company for Old National Bank, has been making waves in the financial sector, catching the attention of analysts and investors alike. With a strong track record of growth, a solid market position, and a diverse investor base, ONB stands out as one of the best Russell 2000 stocks to invest in. This article explores the reasons behind analysts' positive recommendations for ONB and why the company is a standout performer in the small-cap space.



Growth Prospects and Market Position
Old National Bancorp has demonstrated impressive growth in total assets, reaching approximately $53.6 billion as of September 30, 2024. This growth, coupled with an 8.5% annualized increase in total deposits to $40.8 billion, indicates a strong financial performance and a robust growth trajectory. Additionally, ONB's strategic acquisitions, such as the acquisition of CapStar Financial Holdings in April 2024, have further bolstered the company's market presence and growth potential.



Institutional Ownership and Major Shareholders
Institutional ownership in Old National Bancorp is significant, reflecting strong interest from large investment entities. As of the latest available data, top institutional investors include The Vanguard Group, Inc. (7.40%), BlackRock, Inc. (6.30%), State Street Corporation (4.70%), Dimensional Fund Advisors LP (3.30%), and Invesco Ltd. (2.80%). This high level of institutional ownership indicates confidence in the company's performance and potential, as these investors often play a crucial role in influencing the stock price and strategic direction of the company.



Momentum and Price Performance
Old National Bancorp has shown strong momentum and price performance compared to its industry peers. Over the past week, ONB shares are up 3.99%, outperforming the Zacks Banks - Midwest industry's 2.94% gain. Over the past quarter, shares of Old National Bancorp have risen 12.9%, compared to the S&P 500's 0.48% increase. This strong performance indicates that ONB is a solid momentum pick, as investors seek out stocks with positive trends and growth potential.



Analysts' Recommendations and Zacks Rank
Analysts' recommendations for ONB are positive, as indicated by the company's Zacks Rank of #2 (Buy). This ranking suggests that analysts have a positive outlook on the company's prospects, and stocks with a Zacks Rank of #1 (Strong Buy) or #2 (Buy) have historically outperformed the market over the following one-month period. This further supports the notion that ONB is a top Russell 2000 stock pick according to analysts.

In conclusion, Old National Bancorp's growth prospects, market position, strong institutional ownership, and positive momentum make it a standout performer among Russell 2000 stocks. With analysts' positive recommendations and a Zacks Rank of #2 (Buy), ONB is an attractive investment opportunity for those seeking to capitalize on the growth potential of small-cap stocks in the financial sector.