DA Davidson Has Bearish Forecast for FITB FY2025 Earnings

Key Points

• DA Davidson has lowered its FY2025 earnings per share (EPS) estimate for Fifth Third Bancorp (FITB) to $3.52, slightly down from a previous estimate of $3.53, while maintaining a "Buy" rating and a price target of $52.00.
• The company has approved a significant share buyback plan allowing the repurchase of 100 million shares, indicating management's belief that the stock is undervalued.
• Fifth Third Bancorp has raised its quarterly dividend to $0.40 per share, representing an annualized dividend of $1.60 and a yield of 3.7%.

Fifth Third Bancorp (NASDAQ:FITB - Free Report) - Research analysts at DA Davidson reduced their FY2025 EPS estimates for shares of Fifth Third Bancorp in a report issued on Wednesday, October 8th. DA Davidson analyst P. Winter now forecasts that the financial services provider will post earnings of $3.52 per share for the year, down from their previous estimate of $3.53. DA Davidson has a "Buy" rating and a $52.00 price target on the stock. The consensus estimate for Fifth Third Bancorp's current full-year earnings is $3.68 per share. DA Davidson also issued estimates for Fifth Third Bancorp's FY2026 earnings at $4.17 EPS.

FITB has been the topic of several other research reports. The Goldman Sachs Group boosted their price target on shares of Fifth Third Bancorp from $49.00 to $51.00 and gave the company a "buy" rating in a research report on Friday, October 3rd. UBS Group upped their target price on shares of Fifth Third Bancorp from $43.00 to $45.00 and gave the company a "neutral" rating in a research report on Tuesday. Morgan Stanley set a $60.00 target price on shares of Fifth Third Bancorp and gave the company an "overweight" rating in a research report on Tuesday. Keefe, Bruyette & Woods upped their target price on shares of Fifth Third Bancorp from $47.00 to $50.00 and gave the company a "market perform" rating in a research report on Tuesday. Finally, Evercore ISI upped their target price on shares of Fifth Third Bancorp from $45.00 to $49.00 and gave the company an "in-line" rating in a research report on Tuesday, September 30th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat.com, Fifth Third Bancorp has a consensus rating of "Moderate Buy" and a consensus price target of $50.16.

Fifth Third Bancorp Trading Down 0.3%

Shares of FITB stock opened at $43.54 on Thursday. The company's 50-day moving average price is $44.17 and its 200-day moving average price is $40.69. The company has a current ratio of 0.81, a quick ratio of 0.81 and a debt-to-equity ratio of 0.76. The stock has a market cap of $28.82 billion, a price-to-earnings ratio of 13.52, a PEG ratio of 1.41 and a beta of 0.95. Fifth Third Bancorp has a twelve month low of $32.25 and a twelve month high of $49.07.

Fifth Third Bancorp announced that its Board of Directors has approved a share buyback plan on Monday, June 16th that permits the company to repurchase 100,000,000 outstanding shares. This repurchase authorization permits the financial services provider to repurchase shares of its stock through open market purchases. Shares repurchase plans are generally an indication that the company's management believes its stock is undervalued.

Fifth Third Bancorp Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, October 15th. Investors of record on Tuesday, September 30th will be paid a dividend of $0.40 per share. The ex-dividend date is Tuesday, September 30th. This is a positive change from Fifth Third Bancorp's previous quarterly dividend of $0.37. This represents a $1.60 dividend on an annualized basis and a dividend yield of 3.7%. Fifth Third Bancorp's payout ratio is currently 49.69%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in FITB. Evolution Wealth Management Inc. purchased a new stake in shares of Fifth Third Bancorp in the 2nd quarter valued at approximately $26,000. HWG Holdings LP purchased a new stake in shares of Fifth Third Bancorp in the 1st quarter valued at approximately $27,000. Banque Transatlantique SA purchased a new stake in shares of Fifth Third Bancorp in the 1st quarter valued at approximately $27,000. Activest Wealth Management increased its position in shares of Fifth Third Bancorp by 1,043.3% in the 2nd quarter. Activest Wealth Management now owns 686 shares of the financial services provider's stock valued at $28,000 after purchasing an additional 626 shares during the last quarter. Finally, Larson Financial Group LLC increased its position in shares of Fifth Third Bancorp by 91.3% in the 1st quarter. Larson Financial Group LLC now owns 748 shares of the financial services provider's stock valued at $29,000 after purchasing an additional 357 shares during the last quarter. Institutional investors and hedge funds own 83.79% of the company's stock.

About Fifth Third Bancorp

Fifth Third Bancorp operates as the bank holding company for Fifth Third Bank, National Association that engages in the provision of a range of financial products and services in the United States. It operates through three segments: Commercial Banking, Consumer and Small Business Banking, and Wealth and Asset Management.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.