Fifth Third Bancorp (NASDAQ:FITB) Shares Gap Up After Better-Than-Expected Earnings

Key Points

• Fifth Third Bancorp shares experienced a significant jump, opening at $41.91 after reporting better-than-expected earnings of $0.91 per share, exceeding analysts' estimates of $0.87.
• The bank also announced an increase in its quarterly dividend to $0.40 per share, reflecting a 3.9% dividend yield, up from the previous $0.37 payment.
• Multiple analysts have upgraded their price targets for the stock, with DA Davidson raising it to $52.00 and TD Cowen setting it at $57.00, contributing to a consensus price target of $50.35.

Fifth Third Bancorp (NASDAQ:FITB - Get Free Report) shares gapped up prior to trading on Friday following a better than expected earnings announcement. The stock had previously closed at $40.36, but opened at $41.91. Fifth Third Bancorp shares last traded at $40.85, with a volume of 4,351,100 shares trading hands.

The financial services provider reported $0.91 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.87 by $0.04. The firm had revenue of $2.31 billion for the quarter, compared to analyst estimates of $2.28 billion. Fifth Third Bancorp had a return on equity of 13.31% and a net margin of 17.97%.The business's revenue was up 7.9% on a year-over-year basis. During the same quarter last year, the company posted $0.78 earnings per share.

Fifth Third Bancorp Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, October 15th. Stockholders of record on Tuesday, September 30th were paid a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a dividend yield of 3.9%. This is a boost from Fifth Third Bancorp's previous quarterly dividend of $0.37. The ex-dividend date was Tuesday, September 30th. Fifth Third Bancorp's dividend payout ratio (DPR) is currently 49.69%.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on FITB. DA Davidson lifted their price objective on shares of Fifth Third Bancorp from $47.00 to $52.00 and gave the company a "buy" rating in a research report on Wednesday, October 8th. TD Cowen lifted their target price on shares of Fifth Third Bancorp from $53.00 to $57.00 and gave the company a "buy" rating in a report on Tuesday, October 7th. Stephens set a $52.00 price target on shares of Fifth Third Bancorp and gave the stock an "overweight" rating in a report on Tuesday. Truist Financial lifted their price objective on Fifth Third Bancorp from $48.00 to $52.00 and gave the company a "buy" rating in a report on Friday, September 12th. Finally, Argus increased their target price on Fifth Third Bancorp from $46.00 to $49.00 in a research note on Tuesday, October 7th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, Fifth Third Bancorp currently has a consensus rating of "Moderate Buy" and a consensus target price of $50.35.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in FITB. Vanguard Group Inc. boosted its position in shares of Fifth Third Bancorp by 1.6% in the 2nd quarter. Vanguard Group Inc. now owns 83,849,824 shares of the financial services provider's stock worth $3,448,743,000 after buying an additional 1,301,624 shares in the last quarter. Charles Schwab Investment Management Inc. raised its position in Fifth Third Bancorp by 1.7% during the second quarter. Charles Schwab Investment Management Inc. now owns 23,306,918 shares of the financial services provider's stock worth $958,614,000 after acquiring an additional 398,517 shares during the last quarter. Invesco Ltd. raised its position in Fifth Third Bancorp by 16.6% during the second quarter. Invesco Ltd. now owns 20,677,686 shares of the financial services provider's stock worth $850,473,000 after acquiring an additional 2,941,333 shares during the last quarter. Geode Capital Management LLC lifted its holdings in shares of Fifth Third Bancorp by 3.6% in the second quarter. Geode Capital Management LLC now owns 18,008,755 shares of the financial services provider's stock valued at $737,728,000 after purchasing an additional 619,956 shares in the last quarter. Finally, Norges Bank acquired a new stake in shares of Fifth Third Bancorp in the second quarter valued at approximately $357,440,000. Hedge funds and other institutional investors own 83.79% of the company's stock.

Fifth Third Bancorp Stock Performance

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 firm has a market capitalization of $27.18 billion, a PE ratio of 12.76, a PEG ratio of 1.16 and a beta of 0.95. The stock's 50 day moving average price is $44.30 and its two-hundred day moving average price is $40.79.

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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