Fifth Third Bancorp (NASDAQ:FITB) Given Average Rating of "Moderate Buy" by Brokerages

Key Points

• Fifth Third Bancorp has received a consensus recommendation of "Moderate Buy" from 17 brokerages, with an average price target of $47.80.
• The company has initiated a stock repurchase plan authorizing the buyback of 100 million shares, indicating the board's belief in the stock's undervaluation.
• The recent quarterly dividend was set at $0.37 per share, translating to an annual yield of 3.3%.

Shares of Fifth Third Bancorp (NASDAQ:FITB - Get Free Report) have been assigned a consensus recommendation of "Moderate Buy" from the seventeen brokerages that are covering the stock, Marketbeat reports. Five research analysts have rated the stock with a hold recommendation, ten have given a buy recommendation and two have given a strong buy recommendation to the company. The average 1 year price objective among brokerages that have covered the stock in the last year is $47.80.

A number of research firms have recently weighed in on FITB. DA Davidson raised Fifth Third Bancorp from a "hold" rating to a "strong-buy" rating and upped their price objective for the stock from $42.00 to $47.00 in a research report on Monday, June 9th. Jefferies Financial Group started coverage on shares of Fifth Third Bancorp in a research note on Wednesday, May 21st. They set a "buy" rating and a $47.00 target price for the company. Cowen started coverage on shares of Fifth Third Bancorp in a research note on Wednesday, May 14th. They set a "buy" rating for the company. Wells Fargo & Company boosted their target price on shares of Fifth Third Bancorp from $48.00 to $52.00 and gave the stock an "overweight" rating in a research note on Tuesday, June 10th. Finally, TD Cowen started coverage on shares of Fifth Third Bancorp in a research note on Thursday, May 15th. They set a "buy" rating and a $52.00 target price for the company.

Hedge Funds Weigh In On Fifth Third Bancorp

Large investors have recently bought and sold shares of the stock. Quarry LP acquired a new position in Fifth Third Bancorp in the fourth quarter valued at $29,000. HWG Holdings LP acquired a new position in Fifth Third Bancorp in the first quarter valued at $27,000. Activest Wealth Management boosted its stake in Fifth Third Bancorp by 1,043.3% in the second quarter. Activest Wealth Management now owns 686 shares of the financial services provider's stock valued at $28,000 after acquiring an additional 626 shares in the last quarter. Banque Transatlantique SA acquired a new position in Fifth Third Bancorp in the first quarter valued at $27,000. Finally, Larson Financial Group LLC boosted its stake in Fifth Third Bancorp by 91.3% in the first quarter. Larson Financial Group LLC now owns 748 shares of the financial services provider's stock valued at $29,000 after acquiring an additional 357 shares in the last quarter. Institutional investors and hedge funds own 83.79% of the company's stock.

Fifth Third Bancorp Stock Up 1.4%

Shares of NASDAQ FITB opened at $45.00 on Wednesday. The firm has a market cap of $29.79 billion, a price-to-earnings ratio of 13.98, a PEG ratio of 1.44 and a beta of 0.91. The company has a quick ratio of 0.81, a current ratio of 0.81 and a debt-to-equity ratio of 0.76. Fifth Third Bancorp has a 52-week low of $32.25 and a 52-week high of $49.07. The business's 50 day moving average is $42.32 and its two-hundred day moving average is $39.89.

Fifth Third Bancorp declared that its board has initiated a stock repurchase plan on Monday, June 16th that authorizes the company to repurchase 100,000,000 shares. This repurchase authorization authorizes the financial services provider to reacquire shares of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's board of directors believes its stock is undervalued.

Fifth Third Bancorp Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, July 15th. Shareholders of record on Monday, June 30th were paid a $0.37 dividend. This represents a $1.48 annualized dividend and a yield of 3.3%. The ex-dividend date was Monday, June 30th. Fifth Third Bancorp's dividend payout ratio is currently 45.96%.

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.

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