Zacks Research Downgrades Fifth Third Bancorp (NASDAQ:FITB) to Hold

Key Points

• Zacks Research downgraded Fifth Third Bancorp (NASDAQ: FITB) from “strong-buy” to “hold,” even though the broader analyst view remains positive with a consensus rating of “Moderate Buy.”
• The stock closed around $48.63, below the average analyst price target of $57.19, while several firms recently reiterated or raised bullish ratings and targets on the bank.
• Fifth Third reported better-than-expected quarterly EPS of $0.83, though revenue came in slightly below estimates; insider selling and significant hedge fund ownership were also noted.

Fifth Third Bancorp (NASDAQ:FITB - Get Free Report) was downgraded by analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a report released on Monday,Zacks.com reports.

Other equities research analysts have also issued research reports about the company. Royal Bank Of Canada restated an "outperform" rating and issued a $57.00 price objective on shares of Fifth Third Bancorp in a research report on Monday, May 4th. The Goldman Sachs Group increased their target price on Fifth Third Bancorp from $55.00 to $60.00 and gave the company a "buy" rating in a research report on Wednesday, April 22nd. Truist Financial set a $57.00 price objective on Fifth Third Bancorp in a research note on Tuesday, April 21st. Barclays raised their target price on Fifth Third Bancorp from $61.00 to $63.00 and gave the stock an "overweight" rating in a research note on Monday, April 20th. Finally, Jefferies Financial Group increased their price target on Fifth Third Bancorp from $55.00 to $60.00 and gave the stock a "buy" rating in a report on Wednesday, April 8th. Seventeen analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $57.19.

Fifth Third Bancorp Price Performance

Shares of NASDAQ FITB opened at $48.63 on Monday. The business's 50 day moving average price is $47.91 and its 200 day moving average price is $47.64. The firm has a market cap of $44.07 billion, a P/E ratio of 16.32, a P/E/G ratio of 0.99 and a beta of 0.94. Fifth Third Bancorp has a 52 week low of $36.64 and a 52 week high of $55.44. The company has a quick ratio of 0.83, a current ratio of 0.83 and a debt-to-equity ratio of 0.59.

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

Insider Activity

In other news, EVP Kevin J. Khanna sold 6,000 shares of Fifth Third Bancorp stock in a transaction dated Monday, April 20th. The stock was sold at an average price of $50.77, for a total value of $304,620.00. Following the completion of the transaction, the executive vice president owned 76,299 shares in the company, valued at approximately $3,873,700.23. This trade represents a 7.29% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, 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 value of $1,009,200.00. Following the completion of the transaction, the executive vice president owned 189,382 shares of the company's stock, valued at $9,556,215.72. The trade was a 9.55% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 0.51% of the company's stock.

Hedge Funds Weigh In On Fifth Third Bancorp

Several hedge funds have recently added to or reduced their stakes in the stock. AE Wealth Management LLC increased its position in Fifth Third Bancorp by 4.7% during the third quarter. AE Wealth Management LLC now owns 348,001 shares of the financial services provider's stock worth $15,503,000 after buying an additional 15,627 shares during the period. Bahl & Gaynor Inc. increased its holdings in shares of Fifth Third Bancorp by 18.0% in the third quarter. Bahl & Gaynor Inc. now owns 161,369 shares of the financial services provider's stock valued at $7,189,000 after purchasing an additional 24,566 shares during the period. Envestnet Asset Management Inc. boosted its stake in shares of Fifth Third Bancorp by 2.4% in the third quarter. Envestnet Asset Management Inc. now owns 2,023,145 shares of the financial services provider's stock valued at $90,131,000 after buying an additional 48,080 shares in the last quarter. Nordea Investment Management AB boosted its stake in shares of Fifth Third Bancorp by 3.2% in the fourth quarter. Nordea Investment Management AB now owns 1,276,429 shares of the financial services provider's stock valued at $59,788,000 after buying an additional 39,261 shares in the last quarter. Finally, Westfield Capital Management Co. LP boosted its stake in shares of Fifth Third Bancorp by 26.6% in the third quarter. Westfield Capital Management Co. LP now owns 1,619,948 shares of the financial services provider's stock valued at $72,169,000 after buying an additional 340,030 shares in the last quarter. 83.79% of the stock is currently owned by hedge funds and other institutional investors.

Fifth Third Bancorp Company Profile

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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