Aberdeen Group plc Purchases 274,684 Shares of Fifth Third Bancorp $FITB

Key Points

• Aberdeen Group plc increased its stake in Fifth Third Bancorp by 106.2%, owning approximately 0.08% of the company with shares valued at $20.65 million.
• Fifth Third Bancorp announced a share buyback plan allowing the purchase of up to 100 million outstanding shares, indicating confidence in the company's valuation.
• The company declared a quarterly dividend of $0.37, with an annualized yield of 3.4% and a payout ratio of approximately 45.96%.

Aberdeen Group plc raised its position in shares of Fifth Third Bancorp (NASDAQ:FITB - Free Report) by 106.2% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 533,310 shares of the financial services provider's stock after acquiring an additional 274,684 shares during the period. Aberdeen Group plc owned approximately 0.08% of Fifth Third Bancorp worth $20,652,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds have also modified their holdings of FITB. Nuveen LLC purchased a new stake in shares of Fifth Third Bancorp during the 1st quarter worth approximately $334,805,000. Massachusetts Financial Services Co. MA purchased a new stake in Fifth Third Bancorp during the 1st quarter valued at $113,900,000. Charles Schwab Investment Management Inc. raised its holdings in Fifth Third Bancorp by 6.1% during the 1st quarter. Charles Schwab Investment Management Inc. now owns 22,908,401 shares of the financial services provider's stock valued at $898,009,000 after buying an additional 1,321,554 shares during the period. GAMMA Investing LLC raised its holdings in Fifth Third Bancorp by 4,271.4% during the 1st quarter. GAMMA Investing LLC now owns 1,203,362 shares of the financial services provider's stock valued at $47,172,000 after buying an additional 1,175,834 shares during the period. Finally, Alecta Tjanstepension Omsesidigt purchased a new stake in Fifth Third Bancorp during the 1st quarter valued at $40,989,000. 83.79% of the stock is owned by hedge funds and other institutional investors.

Fifth Third Bancorp Trading Up 4.5%

FITB stock traded up $1.91 during midday trading on Friday, reaching $44.79. The company's stock had a trading volume of 4,092,416 shares, compared to its average volume of 3,516,230. The company has a debt-to-equity ratio of 0.76, a quick ratio of 0.81 and a current ratio of 0.81. The stock has a fifty day simple moving average of $42.06 and a two-hundred day simple moving average of $39.88. Fifth Third Bancorp has a 1 year low of $32.25 and a 1 year high of $49.07. The firm has a market capitalization of $29.65 billion, a price-to-earnings ratio of 13.91, a PEG ratio of 1.45 and a beta of 0.91.

Fifth Third Bancorp declared that its board has initiated a share repurchase program on Monday, June 16th that permits the company to buyback 100,000,000 outstanding shares. This buyback authorization permits the financial services provider to reacquire shares of its stock through open market purchases. Shares buyback programs are often a sign that the company's management believes its shares are undervalued.

Fifth Third Bancorp Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, July 15th. Stockholders of record on Monday, June 30th were given a dividend of $0.37 per share. The ex-dividend date of this dividend was Monday, June 30th. This represents a $1.48 dividend on an annualized basis and a dividend yield of 3.3%. Fifth Third Bancorp's dividend payout ratio is presently 45.96%.

Analysts Set New Price Targets

Several analysts recently weighed in on the company. Jefferies Financial Group assumed coverage on Fifth Third Bancorp in a report on Wednesday, May 21st. They set a "buy" rating and a $47.00 price target on the stock. Wells Fargo & Company increased their price target on Fifth Third Bancorp from $48.00 to $52.00 and gave the company an "overweight" rating in a report on Tuesday, June 10th. DA Davidson upgraded Fifth Third Bancorp from a "hold" rating to a "strong-buy" rating and increased their price target for the company from $42.00 to $47.00 in a report on Monday, June 9th. TD Cowen started coverage on Fifth Third Bancorp in a report on Thursday, May 15th. They set a "buy" rating and a $52.00 price target on the stock. Finally, Cowen started coverage on Fifth Third Bancorp in a research note on Wednesday, May 14th. They issued a "buy" rating on the stock. Two analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, Fifth Third Bancorp has an average rating of "Moderate Buy" and a consensus target price of $47.80.

Fifth Third Bancorp 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.