Fifth Third Bancorp (NASDAQ:FITB) Sets New 12-Month High - Here's Why

Key Points

• Fifth Third Bancorp shares hit a new 52-week high, trading as high as $56.97 and closing around $57.05, up about 2.8% on the day.
• Recent analyst activity has been mostly constructive, with multiple firms maintaining or raising targets; the stock currently carries a Moderate Buy consensus and an average price target of about $57.94.
• The bank reported stronger-than-expected quarterly earnings of $0.83 per share versus $0.63 expected and also announced a quarterly dividend of $0.40 per share, equal to a 2.8% annualized yield.

Fifth Third Bancorp (NASDAQ:FITB - Get Free Report)'s share price hit a new 52-week high during trading on Wednesday . The company traded as high as $56.97 and last traded at $57.0540, with a volume of 747161 shares changing hands. The stock had previously closed at $56.37.

Analyst Ratings Changes

Several equities research analysts recently weighed in on FITB shares. Stephens initiated coverage on shares of Fifth Third Bancorp in a research note on Monday, June 15th. They set an "equal weight" rating and a $58.00 target price on the stock. Weiss Ratings raised shares of Fifth Third Bancorp from a "buy (b-)" rating to a "buy (b)" rating in a research report on Monday, June 1st. Wall Street Zen upgraded shares of Fifth Third Bancorp from a "strong sell" rating to a "sell" rating in a research note on Sunday, May 10th. Evercore increased their price objective on Fifth Third Bancorp from $53.00 to $58.00 in a research note on Wednesday, June 24th. Finally, Zacks Research cut Fifth Third Bancorp from a "strong-buy" rating to a "hold" rating in a research note on Monday, May 11th. Sixteen equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $57.94.

Fifth Third Bancorp Stock Up 2.8%

The firm's fifty day simple moving average is $51.17 and its 200 day simple moving average is $49.77. The company has a current ratio of 0.83, a quick ratio of 0.83 and a debt-to-equity ratio of 0.59. The company has a market cap of $52.53 billion, a price-to-earnings ratio of 19.45, a PEG ratio of 1.09 and a beta of 0.92.

Fifth Third Bancorp (NASDAQ:FITB - Get Free Report) last announced its quarterly earnings data on Friday, April 17th. The financial services provider reported $0.83 earnings per share for the quarter, beating analysts' consensus estimates of $0.63 by $0.20. The business had revenue of $2.83 billion for the quarter, compared to analyst estimates of $2.91 billion. Fifth Third Bancorp had a net margin of 15.89% and a return on equity of 12.39%. During the same period last year, the business earned $0.71 EPS. Sell-side analysts predict that Fifth Third Bancorp will post 4.1 earnings per share for the current year.

Fifth Third Bancorp Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, July 15th. Shareholders of record on Tuesday, June 30th will be issued a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date of this dividend is Tuesday, June 30th. Fifth Third Bancorp's payout ratio is 53.69%.

Insider Activity

In other news, EVP Peter L. Sefzik sold 20,000 shares of the stock in a transaction dated Tuesday, April 28th. The stock was sold at an average price of $50.46, for a total value of $1,009,200.00. Following the transaction, the executive vice president owned 189,382 shares in the company, valued at approximately $9,556,215.72. This represents a 9.55% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Kevin J. Khanna sold 6,000 shares of the stock in a transaction dated Monday, April 20th. The shares were sold at an average price of $50.77, for a total value of $304,620.00. Following the completion of the transaction, the executive vice president owned 76,299 shares in the company, valued at approximately $3,873,700.23. The trade was a 7.29% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.51% of the company's stock.

Institutional Trading of Fifth Third Bancorp

Institutional investors have recently modified their holdings of the stock. Bank of New York Mellon Corp raised its stake in Fifth Third Bancorp by 303.4% during the 1st quarter. Bank of New York Mellon Corp now owns 20,079,733 shares of the financial services provider's stock worth $932,904,000 after acquiring an additional 15,101,629 shares in the last quarter. Norges Bank acquired a new stake in shares of Fifth Third Bancorp during the fourth quarter worth about $649,264,000. Price T Rowe Associates Inc. MD increased its position in shares of Fifth Third Bancorp by 41.6% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 35,548,204 shares of the financial services provider's stock worth $1,664,013,000 after purchasing an additional 10,444,799 shares in the last quarter. Clearbridge Investments LLC lifted its holdings in shares of Fifth Third Bancorp by 719.2% in the 4th quarter. Clearbridge Investments LLC now owns 3,012,022 shares of the financial services provider's stock valued at $140,993,000 after purchasing an additional 2,644,332 shares during the last quarter. Finally, Invesco Ltd. boosted its position in shares of Fifth Third Bancorp by 12.1% in the 4th quarter. Invesco Ltd. now owns 23,799,312 shares of the financial services provider's stock valued at $1,114,046,000 after purchasing an additional 2,574,712 shares during the period. Hedge funds and other institutional investors own 83.79% of the company's stock.

About Fifth Third Bancorp

Fifth Third Bancorp is a Cincinnati, Ohio–based bank holding company whose primary banking subsidiary operates as Fifth Third Bank. The company provides a broad range of financial services to individual consumers, small businesses, middle-market companies and large corporations. Its business mix includes retail and commercial banking, lending, payment and card services, treasury and cash management, and wealth management and investment advisory services delivered through a combination of branch locations, commercial offices and digital platforms.

On the consumer side, Fifth Third offers deposit accounts, consumer loans, mortgages, auto financing and credit card products, along with digital banking and mobile services.

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