Fifth Third Bancorp Increases Holdings in Bank OZK $OZK

Key Points

• Fifth Third Bancorp massively increased its Bank OZK stake in the first quarter, boosting holdings by 2,971% to 33,627 shares worth about $1.54 million. Other institutional investors also added to positions, and institutions now own 86.18% of the bank’s shares.
• Bank OZK’s recent results were mixed: it beat EPS estimates on higher fee income, but revenue, net interest income, and credit quality trends came in weaker than expected. Recent reports also showed declines in quarterly net income and revenue, weighing on sentiment.
• The bank continues to diversify away from real estate lending, with management saying real estate exposure has fallen below 50% and that mid-single-digit loan growth is expected for 2026. It also raised its quarterly dividend to $0.48 and has an authorized $200 million share buyback plan.

Fifth Third Bancorp grew its holdings in Bank OZK (NASDAQ:OZK - Free Report) by 2,971.0% during the first quarter, according to the company in its most recent filing with the SEC. The fund owned 33,627 shares of the company's stock after acquiring an additional 32,532 shares during the quarter. Fifth Third Bancorp's holdings in Bank OZK were worth $1,543,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Ruffer LLP purchased a new stake in Bank OZK in the fourth quarter valued at approximately $3,137,000. UBS Group AG grew its stake in Bank OZK by 13.4% in the fourth quarter. UBS Group AG now owns 531,843 shares of the company's stock worth $24,475,000 after purchasing an additional 63,051 shares during the period. Allspring Global Investments Holdings LLC grew its holdings in Bank OZK by 21.5% in the fourth quarter. Allspring Global Investments Holdings LLC now owns 284,258 shares of the company's stock worth $13,371,000 after purchasing an additional 50,258 shares during the period. JPMorgan Chase & Co. increased its holdings in shares of Bank OZK by 21.8% during the third quarter. JPMorgan Chase & Co. now owns 285,876 shares of the company's stock valued at $14,574,000 after acquiring an additional 51,171 shares in the last quarter. Finally, Van Berkom & Associates Inc. increased its position in shares of Bank OZK by 2.8% during the fourth quarter. Van Berkom & Associates Inc. now owns 1,869,432 shares of the company's stock valued at $86,031,000 after acquiring an additional 50,985 shares in the last quarter. Institutional investors and hedge funds own 86.18% of the company's stock.

Bank OZK News Summary

Here are the key news stories impacting Bank OZK this week:

• Positive Sentiment: Management said Bank OZK is continuing to diversify its loan book, with real estate exposure dropping below 50% and the company outlining mid-single-digit loan growth for 2026, which could reduce concentration risk over time. Bank OZK drops real estate exposure below 50%
• Positive Sentiment: Bank OZK’s earnings call highlighted diversification gains and continued momentum in its commercial and industrial banking business, suggesting some parts of the franchise are offsetting weakness elsewhere. Bank OZK Earnings Call: Diversification Gains Amid Headwinds
• Positive Sentiment: Zacks Research raised earnings estimates for FY2026 and upcoming quarters, indicating some analysts see modestly better profitability ahead. Bank OZK Q2 Earnings Beat Estimates on Higher Fee Income, Shares Fall
• Neutral Sentiment: Morgan Stanley kept a Hold rating and a $56 price target, signaling a cautious but not bearish stance after the earnings update. Hold Rating Reiterated on Bank OZK as Earnings Headwinds Offset by CIB Momentum; $56 Price Target Unchanged
• Neutral Sentiment: The company also opened a new Denton location, a small expansion move that supports long-term footprint growth but is unlikely to drive the stock in the near term. Bank OZK to offer financial services at new Denton location
• Negative Sentiment: Q2 results showed earnings beat estimates, but revenue, net interest income, and credit quality trends were weaker than expected, which is weighing on sentiment and helping explain the stock’s recent weakness. Bank OZK Q2 Earnings Beat Estimates on Higher Fee Income, Shares Fall
• Negative Sentiment: Recent reports said quarterly net income and revenue declined, reinforcing concerns that near-term earnings pressure may persist despite the diversification strategy. Bank OZK posts quarterly declines in net income, revenue

Analysts Set New Price Targets

Several equities analysts have issued reports on the stock. Wells Fargo & Company upped their target price on shares of Bank OZK from $50.00 to $52.00 and gave the company an "equal weight" rating in a research note on Monday, July 6th. Weiss Ratings raised Bank OZK from a "buy (b-)" rating to a "buy (b)" rating in a report on Tuesday, June 23rd. Piper Sandler restated an "overweight" rating and set a $61.00 price objective on shares of Bank OZK in a research report on Wednesday. Morgan Stanley lifted their target price on Bank OZK from $54.00 to $56.00 and gave the company an "equal weight" rating in a research note on Monday, June 29th. Finally, Wall Street Zen upgraded shares of Bank OZK from a "sell" rating to a "hold" rating in a report on Sunday, May 17th. Three research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $56.12.

Bank OZK Stock Performance

Bank OZK stock opened at $50.12 on Friday. The company's 50-day moving average price is $49.93 and its 200-day moving average price is $48.27. The company has a quick ratio of 1.00, a current ratio of 0.97 and a debt-to-equity ratio of 0.08. The company has a market cap of $5.61 billion, a PE ratio of 8.28 and a beta of 0.89. Bank OZK has a twelve month low of $42.37 and a twelve month high of $53.66.

Bank OZK (NASDAQ:OZK - Get Free Report) last announced its quarterly earnings results on Tuesday, July 21st. The company reported $1.49 EPS for the quarter, beating analysts' consensus estimates of $1.48 by $0.01. The firm had revenue of $430.02 million during the quarter, compared to the consensus estimate of $436.42 million. Bank OZK had a net margin of 24.95% and a return on equity of 11.87%. The firm's revenue for the quarter was up .5% compared to the same quarter last year. During the same quarter last year, the firm earned $1.47 EPS. On average, equities research analysts forecast that Bank OZK will post 5.98 EPS for the current fiscal year.

Bank OZK announced that its board has authorized a stock buyback plan on Monday, June 29th that authorizes the company to buyback $200.00 million in outstanding shares. This buyback authorization authorizes the company to reacquire up to 3.4% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's board believes its stock is undervalued.

Bank OZK Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, July 20th. Stockholders of record on Monday, July 13th were paid a $0.48 dividend. This represents a $1.92 annualized dividend and a dividend yield of 3.8%. The ex-dividend date of this dividend was Monday, July 13th. This is a positive change from Bank OZK's previous quarterly dividend of $0.47. Bank OZK's dividend payout ratio is 31.27%.

About Bank OZK

Bank OZK, formerly known as Bank of the Ozarks, is a regional commercial bank headquartered in Little Rock, Arkansas. Established in 1903, the bank offers a full suite of banking products and services to both individual and corporate clients. Through a combination of organic growth and targeted acquisitions, Bank OZK has built a diversified lending portfolio and a strong deposit franchise.

The bank's core operations focus on commercial real estate lending, including acquisition, development and construction financing.

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