Smead Capital Management Inc. Sells 187,830 Shares of Fifth Third Bancorp $FITB

Key Points

• Smead Capital Management Inc. reduced its stake in Fifth Third Bancorp by 8.7%, now holding approximately $77.76 million worth in the company, making it the firm's 26th largest position.
• Fifth Third Bancorp has approved a share buyback program allowing the company to repurchase up to 100 million shares, signaling confidence in its stock valuation.
• The company also declared a quarterly dividend of $0.37 per share, representing an annualized dividend of $1.48, with a dividend yield of 3.2%.

Smead Capital Management Inc. reduced its position in shares of Fifth Third Bancorp (NASDAQ:FITB - Free Report) by 8.7% in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,983,539 shares of the financial services provider's stock after selling 187,830 shares during the period. Fifth Third Bancorp makes up 1.3% of Smead Capital Management Inc.'s portfolio, making the stock its 26th biggest holding. Smead Capital Management Inc. owned about 0.30% of Fifth Third Bancorp worth $77,755,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in the stock. OMERS ADMINISTRATION Corp grew its position in Fifth Third Bancorp by 19.9% in the first quarter. OMERS ADMINISTRATION Corp now owns 71,233 shares of the financial services provider's stock worth $2,792,000 after acquiring an additional 11,811 shares in the last quarter. Carlson Capital L.P. grew its position in Fifth Third Bancorp by 64.1% in the first quarter. Carlson Capital L.P. now owns 19,200 shares of the financial services provider's stock worth $753,000 after acquiring an additional 7,500 shares in the last quarter. CreativeOne Wealth LLC grew its position in Fifth Third Bancorp by 25.9% in the first quarter. CreativeOne Wealth LLC now owns 8,578 shares of the financial services provider's stock worth $336,000 after acquiring an additional 1,763 shares in the last quarter. Harvest Portfolios Group Inc. grew its position in Fifth Third Bancorp by 12.3% in the first quarter. Harvest Portfolios Group Inc. now owns 156,184 shares of the financial services provider's stock worth $6,122,000 after acquiring an additional 17,161 shares in the last quarter. Finally, Caisse DE Depot ET Placement DU Quebec grew its position in Fifth Third Bancorp by 110.0% in the first quarter. Caisse DE Depot ET Placement DU Quebec now owns 330,612 shares of the financial services provider's stock worth $12,960,000 after acquiring an additional 173,200 shares in the last quarter. 83.79% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on the stock. Cowen assumed coverage on shares of Fifth Third Bancorp in a research report on Wednesday, May 14th. They issued a "buy" rating for the company. Wells Fargo & Company upped their target price on shares of Fifth Third Bancorp from $48.00 to $52.00 and gave the stock an "overweight" rating in a research report on Tuesday, June 10th. Jefferies Financial Group assumed 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 target for the company. DA Davidson raised shares of Fifth Third Bancorp from a "hold" rating to a "strong-buy" rating and boosted their price target for the stock from $42.00 to $47.00 in a research note on Monday, June 9th. Finally, TD Cowen assumed coverage on shares of Fifth Third Bancorp in a research note on Thursday, May 15th. They issued a "buy" rating and a $52.00 price target for the company. Two investment analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat.com, Fifth Third Bancorp presently has an average rating of "Moderate Buy" and a consensus price target of $47.80.

Fifth Third Bancorp Trading Up 0.4%

Shares of NASDAQ:FITB traded up $0.17 during midday trading on Friday, hitting $45.77. 2,851,587 shares of the stock traded hands, compared to its average volume of 3,462,732. The stock has a market capitalization of $30.29 billion, a PE ratio of 14.21, a P/E/G ratio of 1.48 and a beta of 0.93. The business's 50 day moving average is $42.72 and its two-hundred day moving average is $39.91. 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 one year low of $32.25 and a one year high of $49.07.

Fifth Third Bancorp Announces Dividend

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

Fifth Third Bancorp declared that its Board of Directors has approved a stock repurchase plan on Monday, June 16th that permits the company to buyback 100,000,000 shares. This buyback authorization permits the financial services provider to purchase shares of its stock through open market purchases. Shares buyback plans are usually 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.