Horizon Bancorp, Inc. (HBNC) AI Stock Analysis

Horizon Bancorp, Inc. is the bank holding company for Horizon Bank, delivering commercial and retail banking services. Established in 1873 and based in Michigan City, Indiana, the bank operates 78 full-service offices throughout northern and central Indiana, as well as southern and central Michigan. Its product offerings include deposit services, commercial loans, residential real estate loans, mortgage warehouse loans, and consumer loans. Additionally, Horizon Bancorp provides corporate and individual trust services, investment management, real estate investment trust services, and insurance products. The bank also observes financial technology trends such as cryptocurrency.

Horizon Bancorp's revenue has seen significant shifts, rising to $355.4M in FY2024 before declining 71.0% to $103.2M in FY2025. Net margin plunged to -145.9% in FY2025 from 10.0% in FY2024, resulting in a net loss of -$150.5M, although EPS was reported at $3.16. For the trailing twelve months ended June 30, 2026, revenue stood at -$12.4M with an operating margin of 43.5% and an EPS of -$2.99. In the latest quarter ended June 30, 2026, quarterly revenue grew 16.9% year-over-year while quarterly earnings expanded 3.7%.

As of June 30, 2026, Horizon Bancorp held $1.12B in cash and short-term investments and $379.1M in total debt, yielding a net cash position of $740.5M. Total assets reached $6.57B against shareholders' equity of $726.2M, with a debt-to-equity ratio of 0.52 and a current ratio of 0.21. During FY2025, operating cash flow was $79.2M and free cash flow was $74.3M. Cash deployment included $5.0M for capital expenditures and $29.5M paid in dividends, while the share count increased 17.3% over five years.

Horizon Bancorp trades at a forward P/E of 11.0x, slightly above the 10.8x median of its US-listed Financial Services peers. Its price-to-sales multiple is 3.8x compared to the peer median of 3.2x, while price-to-book stands at 1.3x and PEG is 0.80. Over the past year, HBNC generated a return of 33.3%, outperforming the S&P 500 (SPY) return of 16.8%. Over a 5-year period, its return of 33.0% lagged the S&P 500's 83.0% gain.

Horizon Bancorp offers an annual forward dividend of $0.64 per share, representing a dividend yield of 3.29% and a payout ratio of 20.3%. The company pays dividends quarterly and has maintained 33 consecutive years of dividend payments. Over the past five years, its annualized dividend growth rate was 5.9%, and its last ex-dividend date was October 2, 2026.

Wall Street coverage includes 3 Strong Buy ratings, 2 Buy ratings, and zero Hold, Sell, or Strong Sell ratings. The mean price target is $23.10, representing an 18.7% upside relative to the last close of $19.46. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $307.9M and an EPS of $2.13. Horizon Bancorp beat EPS estimates in 3 of the last 4 quarters, with its next earnings release scheduled for October 21, 2026.

This page is an AI-written research summary of Horizon Bancorp, Inc. (HBNC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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