Five Cheap Financial Stocks Hedge Funds Love

Huntington Bancshares Incorporated (NASDAQ:HBAN) provides banking, leasing and other financial products and services in USA. The stock had lost 20% in the first six months of 2016 and is 8% in the red year-to-date; it has a dividend yield of 2.75%. However, during the second quarter, the number of funds from our database holding shares surged by eight to 31, although the aggregate value of their positions slid by 33% to $220.78 million. For the third quarter, the company is expected to deliver an EPS of $0.21, representing an increase of 16.67% on the year, on revenue of $820 million. In August, the financial company has further strengthened its position in Ohio and Michigan by merging with FirstMerit Corp.

Among the funds we track, 29 held shares of Vereit Inc. (NYSE:VER) worth $801.13 million at the end of June, compared to 31 funds and $1.09 billion, respectively, a quarter earlier. The stock has gained 20% since the beginning of the year and sports a dividend yield of 5.78%. Under the leadership of CEO Glenn Rufrano, the REIT has been implementing its turnaround plan quite successfully and has been disposing some of its real estate asset this year in order to deleverage its balance sheet. In other news, its former CFO Brian Block was arrested last month and charged in connection with an accounting fraud that had led to the company’s value drop by $4.0 billion in 2014. 

WMIH Corp. (NASDAQ:WMIH) saw the number of funds holding long positions decline by four to 29 during the second quarter, while the total value of their holdings slid to $131.18 million from $150.30 million  and represented more than 28% of the company’s float at the end of June. WMIH Corp. (NASDAQ:WMIH). is a holding company engaged in the business of providing reinsurance services. The stock has come a long way after emerging from its bankruptcy in 2012d has returned more than 150% since then. However, since the beginning of 2016, the stock has lost 15%. Currently, WMIH is looking at acquisition opportunities across various industries as it had raised over $600 million from Citigroup and KKR & Co. for this purpose.

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