HBAN Short Interest Jumps While Peers Stay Calmer

Huntington Bancshares stands out among its regional banking peers this week, not for its price performance but for a short interest build that has run well ahead of anything seen in the group.

Among the most closely correlated regional banks, short positioning looks relatively contained. Fifth Third gained 2.3% on the week, PNC rose nearly 3%, and Regions Financial added 2.3%. Huntington's 1.1% weekly gain trailed that peer median of 1.7%. The gap is modest in price terms. In short interest terms, however, the week looked different: Huntington's SI climbed 20% in seven days to 4.2% of free float, a move that sits two standard deviations above its typical weekly change over the past year. That kind of build, against a backdrop of broadly positive peer returns, is the week's main anomaly.

Looking at Huntington's own history, the current 65.5 million shares short is the highest reading in the 30-day window on record in this data. The stock had been running near 46 to 47 million shares short through most of October before a step-change higher around October 23, taking the level to where it is now. Despite that build, the borrow market offers little sign of pressure. Availability remains extraordinarily loose, with more than 2 billion shares available against roughly 65 million borrowed. Cost to borrow fell sharply this week to 0.24%, down from 0.49% ten days ago and now at its lowest point in the 30-day history shown. New shorts are entering at the cheapest borrowing rate in weeks.

Options positioning reinforces the less defensive tone in the derivatives market. The put/call ratio has been declining steadily since late September, when it touched its 52-week high near 0.97. It closed Tuesday at 0.60, roughly one standard deviation below its 20-day average of 0.69. Options traders, at least, are not adding downside protection at an unusual pace.

The Street tells a mixed but directionally cautious story on the stock. Wells Fargo's Mike Mayo and Baird both trimmed their targets to $19 from $21 on October 23, the day the short interest spike appears to have begun. Targets across the analyst community have been drifting lower for weeks: JPMorgan cut to $17.50 from $19.50, UBS to $19 from $22, with a pattern of maintained positive ratings alongside reduced expectations. The consensus mean target is $18.81 against a current price of $15.71, implying meaningful upside on paper, though the repeated target cuts suggest the Street is still in the process of resetting its numbers. The bear case centres on multiple downward revisions to 2026 net interest income guidance and slowing loan growth. The bull case points to a forward P/E of around 9x, expected ROTCE above 17%, and a buyback programme that, per FDIC call report data, delivered the largest Q2 spend on record. Net loans and leases have risen for nine consecutive quarters.

T. Rowe Price is the one institutional name worth watching in the ownership register. The firm held 3.6% of shares as of September 30 based on custody data, yet its most recent Schedule 13G filing, from May 2025, disclosed a stake of 4.9%. Stakes in 13D/G filings are as last disclosed around the 5% threshold, and a holder dropping below that level may not file again, so that divergence may simply reflect normal portfolio movement rather than a deliberate trim.

The level to watch is whether short interest holds above 60 million shares into next week, and whether the next FINRA fortnightly settlement confirms the October 23 build. The next earnings event is January 15.