TCW Group Inc. Acquires Shares of 10,072 Fifth Third Bancorp (NASDAQ:FITB)

Key Points

• TCW Group Inc. has made a new investment of approximately $395,000 in shares of Fifth Third Bancorp, acquiring 10,072 shares during the first quarter.
• Fifth Third Bancorp recently authorized a share buyback program allowing the repurchase of 100 million shares, indicating management's belief that the stock is undervalued.
• The company declared a quarterly dividend of $0.37 per share, representing an annualized yield of 3.48% and a payout ratio of 45.96%.

TCW Group Inc. acquired a new position in shares of Fifth Third Bancorp (NASDAQ:FITB - Free Report) during the 1st quarter, according to its most recent disclosure with the SEC. The institutional investor acquired 10,072 shares of the financial services provider's stock, valued at approximately $395,000.

Several other hedge funds have also modified their holdings of FITB. HWG Holdings LP bought a new position in Fifth Third Bancorp in the 1st quarter valued at $27,000. Quarry LP bought a new position in Fifth Third Bancorp in the 4th quarter valued at $29,000. Larson Financial Group LLC grew its position in Fifth Third Bancorp by 91.3% in the 1st quarter. Larson Financial Group LLC now owns 748 shares of the financial services provider's stock valued at $29,000 after acquiring an additional 357 shares during the last quarter. REAP Financial Group LLC grew its position in Fifth Third Bancorp by 161.8% in the 4th quarter. REAP Financial Group LLC now owns 788 shares of the financial services provider's stock valued at $33,000 after acquiring an additional 487 shares during the last quarter. Finally, Grove Bank & Trust grew its position in Fifth Third Bancorp by 60.7% in the 1st quarter. Grove Bank & Trust now owns 887 shares of the financial services provider's stock valued at $35,000 after acquiring an additional 335 shares during the last quarter. 83.79% of the stock is owned by hedge funds and other institutional investors.

Fifth Third Bancorp Stock Performance

Shares of NASDAQ:FITB traded down $0.55 during trading on Friday, hitting $41.03. The stock had a trading volume of 2,976,624 shares, compared to its average volume of 5,075,966. Fifth Third Bancorp has a 12-month low of $32.25 and a 12-month high of $49.07. The stock has a market capitalization of $27.38 billion, a price-to-earnings ratio of 12.74, a price-to-earnings-growth ratio of 1.37 and a beta of 0.91. The company has a quick ratio of 0.81, a current ratio of 0.81 and a debt-to-equity ratio of 0.76. The stock has a 50-day simple moving average of $40.85 and a two-hundred day simple moving average of $40.12.

Fifth Third Bancorp Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, July 15th. Investors of record on Monday, June 30th were given a dividend of $0.37 per share. This represents a $1.48 annualized dividend and a yield of 3.6%. The ex-dividend date was Monday, June 30th. Fifth Third Bancorp's dividend payout ratio (DPR) is currently 45.96%.

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

Analysts Set New Price Targets

FITB has been the topic of several research analyst reports. Cowen initiated coverage on Fifth Third Bancorp in a research report on Wednesday, May 14th. They issued a "buy" rating on the stock. Robert W. Baird raised Fifth Third Bancorp from a "neutral" rating to an "outperform" rating and set a $47.00 price target on the stock in a research report on Monday, April 7th. DA Davidson upgraded Fifth Third Bancorp from a "hold" rating to a "strong-buy" rating and upped their price objective for the stock from $42.00 to $47.00 in a research note on Monday, June 9th. TD Cowen initiated coverage on Fifth Third Bancorp in a research note on Thursday, May 15th. They set a "buy" rating and a $52.00 price objective for the company. Finally, Jefferies Financial Group initiated coverage on Fifth Third Bancorp in a research note on Wednesday, May 21st. They set a "buy" rating and a $47.00 price objective for the company. One research analyst has rated the stock with a sell rating, five have given a hold rating, ten have assigned a buy rating and two have issued a strong buy rating to the company. Based on data from MarketBeat.com, Fifth Third Bancorp currently has a consensus rating of "Moderate Buy" and a consensus price target 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.