USS Investment Management Ltd Sells 38,100 Shares of Fifth Third Bancorp $FITB

Key Points

• USS Investment Management Ltd reduced its stake in Fifth Third Bancorp by 28.4%, selling 38,100 shares and ending up with 96,042 shares worth approximately $3.76 million.
• Fifth Third Bancorp recently authorized a stock repurchase plan for 100 million shares, indicating the board's belief that the stock is undervalued.
• The company announced a quarterly dividend of $0.37 per share, representing an annualized dividend yield of 3.3% with a payout ratio of 45.96%.

USS Investment Management Ltd lowered its position in shares of Fifth Third Bancorp (NASDAQ:FITB - Free Report) by 28.4% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 96,042 shares of the financial services provider's stock after selling 38,100 shares during the quarter. USS Investment Management Ltd's holdings in Fifth Third Bancorp were worth $3,764,000 as of its most recent SEC filing.

A number of other large investors have also made changes to their positions in the company. Charles Schwab Investment Management Inc. raised its holdings in shares of Fifth Third Bancorp by 6.1% during the first quarter. Charles Schwab Investment Management Inc. now owns 22,908,401 shares of the financial services provider's stock valued at $898,009,000 after acquiring an additional 1,321,554 shares during the period. Invesco Ltd. increased its stake in Fifth Third Bancorp by 5.1% in the 1st quarter. Invesco Ltd. now owns 17,736,353 shares of the financial services provider's stock valued at $695,265,000 after buying an additional 862,374 shares during the period. Nuveen LLC acquired a new position in Fifth Third Bancorp in the 1st quarter valued at approximately $334,805,000. Royal Bank of Canada increased its stake in Fifth Third Bancorp by 4.5% in the 1st quarter. Royal Bank of Canada now owns 6,510,095 shares of the financial services provider's stock valued at $255,196,000 after buying an additional 279,669 shares during the period. Finally, Alliancebernstein L.P. increased its stake in Fifth Third Bancorp by 12.1% in the 1st quarter. Alliancebernstein L.P. now owns 5,028,501 shares of the financial services provider's stock valued at $197,117,000 after buying an additional 542,934 shares during the period. Institutional investors and hedge funds own 83.79% of the company's stock.

Fifth Third Bancorp Stock Up 0.6%

FITB stock traded up $0.29 during trading hours on Friday, hitting $45.56. The company's stock had a trading volume of 3,469,353 shares, compared to its average volume of 3,797,077. 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 moving average price of $43.49 and a two-hundred day moving average price of $40.07. The company has a market capitalization of $30.16 billion, a PE ratio of 14.15, a price-to-earnings-growth ratio of 1.45 and a beta of 0.93. Fifth Third Bancorp has a 12 month low of $32.25 and a 12 month high of $49.07.

Fifth Third Bancorp Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 15th. Investors of record on Tuesday, September 30th will be issued a dividend of $0.40 per share. This is an increase from Fifth Third Bancorp's previous quarterly dividend of $0.37. This represents a $1.60 annualized dividend and a dividend yield of 3.5%. Fifth Third Bancorp's dividend payout ratio is currently 45.96%.

Fifth Third Bancorp announced that its board has initiated a stock buyback program on Monday, June 16th that permits the company to buyback 100,000,000 shares. This buyback authorization permits the financial services provider to repurchase shares of its stock through open market purchases. Shares buyback programs are often an indication that the company's management believes its shares are undervalued.

Wall Street Analyst Weigh In

FITB has been the topic of several research reports. Wells Fargo & Company upped their price objective on shares of Fifth Third Bancorp from $48.00 to $52.00 and gave the company an "overweight" rating in a research note on Tuesday, June 10th. DA Davidson upgraded shares of Fifth Third Bancorp from a "hold" rating to a "strong-buy" rating and upped their price objective for the company from $42.00 to $47.00 in a research note on Monday, June 9th. Jefferies Financial Group initiated 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 objective on the stock. Finally, Truist Financial upped their price objective on shares of Fifth Third Bancorp from $48.00 to $52.00 and gave the company a "buy" rating in a research note on Friday. Two equities research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat, Fifth Third Bancorp presently has an average rating of "Moderate Buy" and a consensus price target of $48.33.

Fifth Third Bancorp Profile

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.