Fifth Third Bancorp $FITB Shares Acquired by Canada Pension Plan Investment Board

Key Points

• The Canada Pension Plan Investment Board increased its holdings in Fifth Third Bancorp by 61.7%, owning approximately 0.07% of the company, valued at $19.17 million after buying an additional 186,545 shares.
• Fifth Third Bancorp's Board of Directors initiated a stock repurchase plan allowing for the buyback of up to 100 million shares, indicating confidence in the company's valuation.
• The company declared a quarterly dividend of $0.37 per share, contributing to an annualized dividend yield of 3.2%.

Canada Pension Plan Investment Board grew its stake in Fifth Third Bancorp (NASDAQ:FITB - Free Report) by 61.7% during the first quarter, according to its most recent 13F filing with the SEC. The firm owned 488,902 shares of the financial services provider's stock after acquiring an additional 186,545 shares during the period. Canada Pension Plan Investment Board owned about 0.07% of Fifth Third Bancorp worth $19,165,000 as of its most recent filing with the SEC.

A number of other institutional investors and hedge funds have also made changes to their positions in the stock. Commerce Bank raised its stake 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 valued at $1,581,000 after acquiring an additional 282 shares during the period. Orca Wealth Management LLC raised its stake in shares of 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 valued at $1,384,000 after acquiring an additional 294 shares during the period. Meadow Creek Wealth Advisors LLC raised its stake in shares of Fifth Third Bancorp by 3.0% in the 1st quarter. Meadow Creek Wealth Advisors LLC now owns 10,451 shares of the financial services provider's stock valued at $410,000 after acquiring an additional 300 shares during the period. Gotham Asset Management LLC raised its stake in shares of Fifth Third Bancorp by 2.3% in the 4th quarter. Gotham Asset Management LLC now owns 14,110 shares of the financial services provider's stock valued at $597,000 after acquiring an additional 316 shares during the period. Finally, Independent Advisor Alliance lifted its holdings in Fifth Third Bancorp by 2.1% during the 1st quarter. Independent Advisor Alliance now owns 15,254 shares of the financial services provider's stock worth $598,000 after buying an additional 319 shares in the last quarter. 83.79% of the stock is owned by hedge funds and other institutional investors.

Fifth Third Bancorp Stock Down 1.4%

NASDAQ FITB traded down $0.64 on Friday, hitting $45.62. 4,223,595 shares of the stock were exchanged, compared to its average volume of 3,301,431. The company has a quick ratio of 0.81, a current ratio of 0.81 and a debt-to-equity ratio of 0.76. Fifth Third Bancorp has a fifty-two week low of $32.25 and a fifty-two week high of $49.07. The company has a market cap of $30.20 billion, a PE ratio of 14.17, a PEG ratio of 1.48 and a beta of 0.93. The company has a 50-day moving average price of $43.21 and a 200-day moving average price of $39.99.

Fifth Third Bancorp declared that its Board of Directors has initiated a stock repurchase plan on Monday, June 16th that authorizes the company to repurchase 100,000,000 shares. This repurchase authorization authorizes the financial services provider to buy shares of its stock through open market purchases. Stock repurchase plans are often an indication that the company's management believes its stock is undervalued.

Fifth Third Bancorp Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, July 15th. Stockholders of record on Monday, June 30th were issued a $0.37 dividend. The ex-dividend date was Monday, June 30th. This represents a $1.48 annualized dividend and a dividend yield of 3.2%. Fifth Third Bancorp's dividend payout ratio is presently 45.96%.

Wall Street Analyst Weigh In

Several brokerages have commented on FITB. Jefferies Financial Group began coverage on shares of Fifth Third Bancorp in a research report on Wednesday, May 21st. They issued a "buy" rating and a $47.00 price target for the company. Wells Fargo & Company raised their price target on shares of Fifth Third Bancorp from $48.00 to $52.00 and gave the company an "overweight" rating in a research report on Tuesday, June 10th. TD Cowen began 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. DA Davidson raised shares of Fifth Third Bancorp from a "hold" rating to a "strong-buy" rating and raised their price target for the company from $42.00 to $47.00 in a research report on Monday, June 9th. Finally, Cowen began coverage on shares of Fifth Third Bancorp in a research report on Wednesday, May 14th. They issued a "buy" rating for the company. Two investment analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat, Fifth Third Bancorp currently has an average rating of "Moderate Buy" and an average target price of $47.80.

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.