Bank of Nova Scotia Decreases Stake in Fifth Third Bancorp (NASDAQ:FITB)

Key Points

• Bank of Nova Scotia reduced its stake in Fifth Third Bancorp by 21.6% in the first quarter, now holding 70,335 shares valued at $2,757,000.
• Analysts are optimistic about Fifth Third Bancorp, with multiple firms issuing "buy" ratings and a consensus target price of $47.80.
• The company has authorized a stock repurchase plan to buy back 100 million shares, indicating potential management confidence in the stock's valuation.

Bank of Nova Scotia decreased its holdings in Fifth Third Bancorp (NASDAQ:FITB - Free Report) by 21.6% during the 1st quarter, according to its most recent disclosure with the SEC. The firm owned 70,335 shares of the financial services provider's stock after selling 19,371 shares during the period. Bank of Nova Scotia's holdings in Fifth Third Bancorp were worth $2,757,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also made changes to their positions in the business. Commerce Bank increased its holdings in shares of Fifth Third Bancorp by 0.7% in the 1st quarter. Commerce Bank now owns 40,331 shares of the financial services provider's stock worth $1,581,000 after acquiring an additional 282 shares during the period. Orca Wealth Management LLC grew its position in Fifth Third Bancorp by 0.8% in the 1st quarter. Orca Wealth Management LLC now owns 35,296 shares of the financial services provider's stock worth $1,384,000 after purchasing an additional 294 shares during the last quarter. Meadow Creek Wealth Advisors LLC increased its stake in shares of Fifth Third Bancorp by 3.0% in the first quarter. Meadow Creek Wealth Advisors LLC now owns 10,451 shares of the financial services provider's stock valued at $410,000 after purchasing an additional 300 shares during the period. Gotham Asset Management LLC raised its holdings in shares of Fifth Third Bancorp by 2.3% during the fourth quarter. Gotham Asset Management LLC now owns 14,110 shares of the financial services provider's stock valued at $597,000 after buying an additional 316 shares during the last quarter. Finally, Summit Investment Advisors Inc. boosted its position in shares of Fifth Third Bancorp by 0.6% during the fourth quarter. Summit Investment Advisors Inc. now owns 51,109 shares of the financial services provider's stock worth $2,161,000 after buying an additional 322 shares during the period. Institutional investors and hedge funds own 83.79% of the company's stock.

Wall Street Analysts Forecast Growth

Several analysts recently commented on the company. TD Cowen assumed coverage on Fifth Third Bancorp in a research report on Thursday, May 15th. They issued a "buy" rating and a $52.00 target price on the stock. Jefferies Financial Group started 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 lifted their price objective on shares of Fifth Third Bancorp from $48.00 to $52.00 and gave the company an "overweight" rating in a research note on Tuesday, June 10th. DA Davidson upgraded shares of Fifth Third Bancorp from a "hold" rating to a "strong-buy" rating and increased their target price for the company from $42.00 to $47.00 in a research report on Monday, June 9th. Finally, Cowen started coverage on shares of Fifth Third Bancorp in a research note on Wednesday, May 14th. They set a "buy" rating on the stock. One research analyst has rated the stock with a sell rating, five have issued a hold rating, ten have given a buy rating and two have issued a strong buy rating to the company's stock. Based on data from MarketBeat.com, Fifth Third Bancorp presently has a consensus rating of "Moderate Buy" and a consensus target price of $47.80.

Fifth Third Bancorp Stock Performance

Shares of FITB opened at $41.25 on Thursday. Fifth Third Bancorp has a one year low of $32.25 and a one year high of $49.07. The company has a 50-day moving average of $41.14 and a two-hundred day moving average of $40.05. The company has a debt-to-equity ratio of 0.76, a current ratio of 0.81 and a quick ratio of 0.81. The stock has a market cap of $27.53 billion, a price-to-earnings ratio of 12.81, a PEG ratio of 1.34 and a beta of 0.91.

Fifth Third Bancorp Dividend Announcement

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

Fifth Third Bancorp declared that its board has authorized a stock repurchase plan on Monday, June 16th that allows the company to buyback 100,000,000 outstanding shares. This buyback authorization allows the financial services provider to purchase shares of its stock through open market purchases. Shares buyback plans are typically a sign that the company's management believes its shares are undervalued.

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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