What Is Old National Bancorp’s (NASDAQ:ONB) Share Price Doing?

Old National Bancorp (NASDAQ:ONB), operating in the financial services industry based in United States, received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to $17.9 at one point, and dropping to the lows of $15.74. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Old National Bancorp’s current trading price of $16.6 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Old National Bancorp’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

Check out our latest analysis for Old National Bancorp

What is Old National Bancorp worth?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 5.82% above my intrinsic value, which means if you buy Old National Bancorp today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is $15.69, then there isn’t really any room for the share price grow beyond what it’s currently trading. In addition to this, Old National Bancorp has a low beta, which suggests its share price is less volatile than the wider market.

What kind of growth will Old National Bancorp generate?

NasdaqGS:ONB Past and Future Earnings, May 26th 2019
NasdaqGS:ONB Past and Future Earnings, May 26th 2019

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by a double-digit 19% in the upcoming year, the short-term outlook is positive for Old National Bancorp. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What this means for you:

Are you a shareholder? It seems like the market has already priced in ONB’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping an eye on ONB, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Old National Bancorp. You can find everything you need to know about Old National Bancorp in the latest infographic research report. If you are no longer interested in Old National Bancorp, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.