Smead Capital Management Inc. Purchases 1,624,138 Shares of Fifth Third Bancorp $FITB

Key Points

• Smead Capital Management nearly doubled its stake in Fifth Third Bancorp in the fourth quarter, buying 1,624,138 additional shares and bringing its total position to 3,250,139 shares worth about $152.1 million.
• Wall Street sentiment remains positive, with 17 analysts rating FITB a Buy and four Hold ratings, giving it a consensus “Moderate Buy” and a price target of $57.19.
• Fifth Third Bancorp reported solid quarterly results, posting EPS of $0.83 versus expectations for a loss, while also paying a quarterly dividend of $0.40 per share for a 3.2% annual yield.

Smead Capital Management Inc. increased its position in shares of Fifth Third Bancorp (NASDAQ:FITB - Free Report) by 99.9% in the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 3,250,139 shares of the financial services provider's stock after buying an additional 1,624,138 shares during the period. Fifth Third Bancorp accounts for 3.2% of Smead Capital Management Inc.'s holdings, making the stock its 17th biggest holding. Smead Capital Management Inc. owned about 0.49% of Fifth Third Bancorp worth $152,139,000 at the end of the most recent reporting period.

A number of other hedge funds have also bought and sold shares of FITB. Westside Investment Management Inc. raised its stake in Fifth Third Bancorp by 100.0% during the third quarter. Westside Investment Management Inc. now owns 584 shares of the financial services provider's stock worth $26,000 after buying an additional 292 shares during the last quarter. Harbor Investment Advisory LLC raised its stake in Fifth Third Bancorp by 501.9% during the fourth quarter. Harbor Investment Advisory LLC now owns 620 shares of the financial services provider's stock worth $29,000 after buying an additional 517 shares during the last quarter. United Community Bank raised its stake in Fifth Third Bancorp by 581.0% during the third quarter. United Community Bank now owns 681 shares of the financial services provider's stock worth $30,000 after buying an additional 581 shares during the last quarter. Leonteq Securities AG bought a new position in Fifth Third Bancorp during the fourth quarter worth $30,000. Finally, Quest 10 Wealth Builders Inc. raised its stake in Fifth Third Bancorp by 619.6% during the fourth quarter. Quest 10 Wealth Builders Inc. now owns 734 shares of the financial services provider's stock worth $34,000 after buying an additional 632 shares during the last quarter. Institutional investors own 83.79% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on FITB. Evercore lifted their target price on shares of Fifth Third Bancorp from $51.00 to $53.00 in a research note on Tuesday, April 21st. Weiss Ratings downgraded shares of Fifth Third Bancorp from a "buy (b)" rating to a "buy (b-)" rating in a research note on Wednesday, May 6th. Jefferies Financial Group lifted their price target on shares of Fifth Third Bancorp from $55.00 to $60.00 and gave the company a "buy" rating in a research note on Wednesday, April 8th. The Goldman Sachs Group lifted their price target on shares of Fifth Third Bancorp from $55.00 to $60.00 and gave the company a "buy" rating in a research note on Wednesday, April 22nd. Finally, Morgan Stanley decreased their price target on shares of Fifth Third Bancorp from $67.00 to $60.00 and set an "overweight" rating for the company in a research note on Tuesday, March 31st. Seventeen investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $57.19.

Insider Transactions at Fifth Third Bancorp

In other news, EVP Peter L. Sefzik sold 20,000 shares of Fifth Third Bancorp stock in a transaction dated Tuesday, April 28th. The shares were sold at an average price of $50.46, for a total transaction of $1,009,200.00. Following the completion of the transaction, the executive vice president directly owned 189,382 shares in the company, valued at $9,556,215.72. This trade represents a 9.55% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Kevin J. Khanna sold 6,000 shares of Fifth Third Bancorp stock in a transaction dated Monday, April 20th. The shares were sold at an average price of $50.77, for a total transaction of $304,620.00. Following the transaction, the executive vice president owned 76,299 shares of the company's stock, valued at $3,873,700.23. This represents a 7.29% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.51% of the stock is owned by company insiders.

Fifth Third Bancorp Stock Up 0.7%

Shares of NASDAQ FITB opened at $49.48 on Friday. The stock has a market capitalization of $44.84 billion, a P/E ratio of 16.60, a P/E/G ratio of 1.01 and a beta of 0.94. The company has a 50-day moving average price of $47.94 and a 200-day moving average price of $47.94. Fifth Third Bancorp has a 1 year low of $36.64 and a 1 year high of $55.44. The company has a debt-to-equity ratio of 0.59, a current ratio of 0.83 and a quick ratio of 0.83.

Fifth Third Bancorp (NASDAQ:FITB - Get Free Report) last issued its quarterly earnings data on Friday, April 17th. The financial services provider reported $0.83 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.04) by $0.87. The firm had revenue of $2.83 billion during the quarter, compared to analysts' expectations of $2.91 billion. Fifth Third Bancorp had a net margin of 15.89% and a return on equity of 12.39%. During the same period last year, the company earned $0.71 earnings per share. On average, equities research analysts forecast that Fifth Third Bancorp will post 4.1 EPS for the current fiscal year.

Fifth Third Bancorp Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, April 15th. Stockholders of record on Tuesday, March 31st were issued a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date was Tuesday, March 31st. Fifth Third Bancorp's dividend payout ratio (DPR) is currently 53.69%.

About Fifth Third Bancorp

Fifth Third Bancorp is a Cincinnati, Ohio–based bank holding company whose primary banking subsidiary operates as Fifth Third Bank. The company provides a broad range of financial services to individual consumers, small businesses, middle-market companies and large corporations. Its business mix includes retail and commercial banking, lending, payment and card services, treasury and cash management, and wealth management and investment advisory services delivered through a combination of branch locations, commercial offices and digital platforms.

On the consumer side, Fifth Third offers deposit accounts, consumer loans, mortgages, auto financing and credit card products, along with digital banking and mobile services.

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