Fifth Third Bancorp (NASDAQ:FITB) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Fifth Third Bancorp has received a consensus rating of "Moderate Buy" from analysts, with the average 1-year price target set at $47.80.
• Recently, the company announced a stock repurchase program allowing for the buyback of 100 million shares, indicating management's belief that the stock is undervalued.
• The firm declared a quarterly dividend of $0.37 per share, providing a 3.6% dividend yield based on an annualized payment of $1.48.

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

FITB has been the topic of several analyst reports. DA Davidson upgraded Fifth Third Bancorp from a "hold" rating to a "strong-buy" rating and upped their price objective for the company from $42.00 to $47.00 in a research note on Monday, June 9th. Baird R W upgraded Fifth Third Bancorp from a "hold" rating to a "strong-buy" rating in a research report on Monday, April 7th. Truist Financial dropped their price objective on Fifth Third Bancorp from $52.00 to $44.00 and set a "buy" rating for the company in a research note on Tuesday, April 22nd. Wells Fargo & Company boosted their price target on shares of Fifth Third Bancorp from $48.00 to $52.00 and gave the company an "overweight" rating in a research report on Tuesday, June 10th. Finally, TD Cowen began coverage on shares of Fifth Third Bancorp in a research note on Thursday, May 15th. They issued a "buy" rating and a $52.00 target price for the company.

Institutional Investors Weigh In On Fifth Third Bancorp

Institutional investors and hedge funds have recently modified their holdings of the business. Quarry LP acquired a new position in shares of Fifth Third Bancorp during the 4th quarter worth about $29,000. HWG Holdings LP acquired a new stake in shares of Fifth Third Bancorp in the 1st quarter valued at approximately $27,000. Activest Wealth Management boosted its stake in Fifth Third Bancorp by 1,043.3% during the 2nd quarter. Activest Wealth Management now owns 686 shares of the financial services provider's stock worth $28,000 after acquiring an additional 626 shares during the last quarter. Banque Transatlantique SA acquired a new position in Fifth Third Bancorp during the first quarter valued at approximately $27,000. Finally, Larson Financial Group LLC grew its holdings in Fifth Third Bancorp by 91.3% during the first 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 period. 83.79% of the stock is owned by institutional investors.

Fifth Third Bancorp Stock Performance

NASDAQ:FITB opened at $40.91 on Friday. The firm has a market capitalization of $27.31 billion, a PE ratio of 12.70, a price-to-earnings-growth ratio of 1.35 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 12-month low of $32.25 and a 12-month high of $49.07. The firm has a 50-day moving average price of $40.92 and a 200 day moving average price of $40.10.

Fifth Third Bancorp announced that its Board of Directors has approved a stock repurchase program on Monday, June 16th that allows the company to buyback 100,000,000 shares. This buyback authorization allows the financial services provider to buy shares of its stock through open market purchases. Stock buyback programs are generally an indication that the company's board of directors believes its shares are undervalued.

Fifth Third Bancorp Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, July 15th. Stockholders of record on Monday, June 30th were paid a $0.37 dividend. This represents a $1.48 annualized dividend and a dividend yield of 3.6%. The ex-dividend date of this dividend was Monday, June 30th. Fifth Third Bancorp's dividend payout ratio (DPR) is 45.96%.

Fifth Third Bancorp Company Profile

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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