Fifth Third Bancorp $FITB Shares Purchased by Ameriprise Financial Inc.

Key Points

• Ameriprise Financial Inc. increased its stake in Fifth Third Bancorp by 11.9% during the first quarter, now owning 930,756 shares valued at approximately $36.78 million.
• Fifth Third Bancorp's board has authorized a stock buyback plan allowing the company to repurchase 100 million outstanding shares, reflecting confidence in the stock's value.
• The company declared a quarterly dividend of $0.37 per share, resulting in an annualized yield of 3.2% and a payout ratio of 45.96%.

Ameriprise Financial Inc. lifted its holdings in shares of Fifth Third Bancorp (NASDAQ:FITB - Free Report) by 11.9% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 930,756 shares of the financial services provider's stock after buying an additional 98,777 shares during the quarter. Ameriprise Financial Inc. owned approximately 0.14% of Fifth Third Bancorp worth $36,783,000 as of its most recent SEC filing.

Several other large investors have also made changes to their positions in the business. Charles Schwab Investment Management Inc. raised its stake in shares of 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 worth $898,009,000 after buying an additional 1,321,554 shares during the period. Invesco Ltd. raised its stake in shares of Fifth Third Bancorp by 5.1% during the 1st quarter. Invesco Ltd. now owns 17,736,353 shares of the financial services provider's stock worth $695,265,000 after buying an additional 862,374 shares during the period. Nuveen LLC acquired a new position in shares of Fifth Third Bancorp during the 1st quarter worth approximately $334,805,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in shares of Fifth Third Bancorp by 15.4% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 4,229,103 shares of the financial services provider's stock worth $178,806,000 after buying an additional 564,860 shares during the period. Finally, Massachusetts Financial Services Co. MA acquired a new position in shares of Fifth Third Bancorp during the 1st quarter worth approximately $113,900,000. 83.79% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

FITB has been the subject of several recent research reports. Jefferies Financial Group initiated coverage on Fifth Third Bancorp in a research note on Wednesday, May 21st. They issued a "buy" rating and a $47.00 price objective for the company. DA Davidson raised Fifth Third Bancorp from a "hold" rating to a "strong-buy" rating and increased their price objective for the company from $42.00 to $47.00 in a research note on Monday, June 9th. Wells Fargo & Company increased their price objective on Fifth Third Bancorp from $48.00 to $52.00 and gave the company an "overweight" rating in a research note on Tuesday, June 10th. TD Cowen initiated coverage on Fifth Third Bancorp in a research note on Thursday, May 15th. They issued a "buy" rating and a $52.00 price objective for the company. Finally, Cowen initiated coverage on Fifth Third Bancorp in a research note on Wednesday, May 14th. They issued a "buy" rating for the company. Two equities research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and five have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $47.80.

Fifth Third Bancorp Trading Down 0.4%

Shares of NASDAQ FITB traded down $0.21 during mid-day trading on Wednesday, reaching $45.37. 1,673,561 shares of the company's stock were exchanged, compared to its average volume of 4,877,237. The firm has a market capitalization of $30.03 billion, a price-to-earnings ratio of 14.09, a PEG ratio of 1.48 and a beta of 0.93. The company has a debt-to-equity ratio of 0.76, a quick ratio of 0.81 and a current ratio of 0.81. Fifth Third Bancorp has a 52-week low of $32.25 and a 52-week high of $49.07. The company's 50-day moving average is $42.93 and its 200-day moving average is $39.96.

Fifth Third Bancorp Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, July 15th. Stockholders of record on Monday, June 30th were issued a dividend of $0.37 per share. The ex-dividend date 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 currently 45.96%.

Fifth Third Bancorp declared that its board has authorized a share 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 purchase shares of its stock through open market purchases. Stock buyback programs are often an indication that the company's management believes its stock is undervalued.

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.