Horizon Bancorp (HBNC) stock soared 5.72% in pre-market trading on Tuesday, following news that activist investor PL Capital is pushing for the sale of the Midwest-based bank. This development comes amid a growing trend of activist investors targeting regional banks for potential mergers and acquisitions.

According to recent reports, PL Capital, a Florida-based activist fund, has expressed its loss of confidence in Horizon Bancorp's board and management. In a presentation, PL Capital stated, "An 'M&A Wave' which will permanently alter the banking landscape has begun. This is Horizon's best opportunity to maximize shareholder value and recover the value destroyed by Horizon's prior mismanagement." The fund's aggressive stance appears to have sparked investor interest, driving up the stock price in anticipation of potential corporate actions.

This move against Horizon Bancorp is part of a broader trend in the banking sector, where activist investors are increasingly targeting regional banks for consolidation. The industry has become ripe for M&A activity, driven by pent-up demand and a more favorable regulatory environment. As smaller banks face pressure to improve performance or consider strategic alternatives, investors are betting on potential buyouts to unlock shareholder value. The pre-market surge in Horizon Bancorp's stock price reflects the market's positive reaction to the possibility of a sale, as investors speculate on the potential premium a buyer might pay for the bank.