Federated Hermes Inc. Buys 6,164 Shares of Fifth Third Bancorp (NASDAQ:FITB)

Key Points

• Federated Hermes Inc. increased its stake in Fifth Third Bancorp by 10.7% in the first quarter, owning 63,679 shares worth approximately $2.5 million.
• Fifth Third Bancorp initiated a share repurchase program allowing the company to buy back 100 million shares, indicating a belief that the stock is undervalued.
• The company declared a quarterly dividend of $0.37 per share, yielding 3.6%, with a payout ratio of 45.96%.

Federated Hermes Inc. increased its holdings in Fifth Third Bancorp (NASDAQ:FITB - Free Report) by 10.7% in the 1st quarter, according to its most recent filing with the SEC. The institutional investor owned 63,679 shares of the financial services provider's stock after buying an additional 6,164 shares during the quarter. Federated Hermes Inc.'s holdings in Fifth Third Bancorp were worth $2,496,000 at the end of the most recent reporting period.

A number of other hedge funds have also bought and sold shares of FITB. Massachusetts Financial Services Co. MA bought a new stake in shares of Fifth Third Bancorp during the 1st quarter valued at about $113,900,000. GAMMA Investing LLC increased its holdings in Fifth Third Bancorp by 4,271.4% during the first 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 last quarter. Alecta Tjanstepension Omsesidigt purchased a new stake in Fifth Third Bancorp during the first quarter valued at approximately $40,989,000. First Trust Advisors LP boosted its stake in shares of Fifth Third Bancorp by 12.1% during the 4th quarter. First Trust Advisors LP now owns 9,531,485 shares of the financial services provider's stock worth $402,991,000 after acquiring an additional 1,027,044 shares during the last quarter. Finally, Raymond James Financial Inc. bought a new stake in shares of Fifth Third Bancorp during the 4th quarter valued at $38,971,000. Hedge funds and other institutional investors own 83.79% of the company's stock.

Analysts Set New Price Targets

FITB has been the topic of a number of recent research reports. Barclays decreased their target price on Fifth Third Bancorp from $56.00 to $51.00 and set an "overweight" rating on the stock in a report on Monday, April 21st. Cowen initiated coverage on Fifth Third Bancorp in a research report on Wednesday, May 14th. They set a "buy" rating on the stock. Truist Financial reduced their target price on shares of Fifth Third Bancorp from $52.00 to $44.00 and set a "buy" rating for the company in a report on Tuesday, April 22nd. TD Cowen initiated coverage on shares of Fifth Third Bancorp in a research report on Thursday, May 15th. They issued a "buy" rating and a $52.00 price target for the company. Finally, Jefferies Financial Group started coverage on shares of 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. One investment analyst has rated the stock with a sell rating, five have given a hold rating, ten have assigned a buy rating and two have given a strong buy rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $47.80.

Fifth Third Bancorp Price Performance

Shares of FITB stock traded up $0.47 during trading hours on Friday, hitting $41.64. The stock had a trading volume of 2,952,809 shares, compared to its average volume of 5,044,242. 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 capitalization of $27.79 billion, a price-to-earnings ratio of 12.93, a PEG ratio of 1.34 and a beta of 0.91. Fifth Third Bancorp has a one year low of $32.25 and a one year high of $49.07. The stock's 50-day moving average price is $41.19 and its two-hundred day moving average price is $40.03.

Fifth Third Bancorp Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, July 15th. Investors of record on Monday, June 30th were issued a $0.37 dividend. 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 3.6%. Fifth Third Bancorp's dividend payout ratio (DPR) is 45.96%.

Fifth Third Bancorp announced that its Board of Directors has authorized a stock repurchase program on Monday, June 16th that allows the company to repurchase 100,000,000 outstanding shares. This repurchase authorization allows the financial services provider to reacquire shares of its stock through open market purchases. Stock repurchase programs are usually a sign that the company's board believes its stock is 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.