As of the second quarter of this year, AE Wealth Management LLC has increased its holdings in Fifth Third Bancorp (NASDAQ:FITB) by 21.2%, according to its recent filing with the Securities and Exchange Commission (SEC). The institutional investor now possesses 599,973 shares of FITB’s stock, having acquired an additional 104,882 shares during the same quarter. This brought AE Wealth Management LLC’s ownership to 0.09% of Fifth Third Bancorp, representing a value of $15,725,000 at the end of the quarter.
On Thursday, July 20th, Fifth Third Bancorp released its earnings results for the same quarter. The financial services provider reported an earnings per share (EPS) of $0.82, slightly below market expectations by ($0.01). During this period, the company generated revenues amounting to $3.10 billion compared to the consensus estimate of $2.19 billion. Furthermore, Fifth Third Bancorp achieved a return on equity (ROE) of 16.92%, along with a net margin of 22.66%. In comparison, during the corresponding quarter last year, EPS stood at $0.79.
Market analysts are projecting FITB to post an EPS of 3.34 for the current year based on various factors and performance indicators observed until now.
These developments indicate notable activity within Fifth Third Bancorp’s financials and institutional investors’ interests in their stocks during this period.
For more information on this subject matter and comprehensive research findings about Fifth Third Bancorp’s recent performance and future forecasts, please refer to our latest report available now.
Date reference: September 17th, 2023
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Shifting Investor Sentiment and Analyst Evaluations for Fifth Third Bancorp
Institutional investors have made notable changes to their stakes in Fifth Third Bancorp, indicating potential shifts in investor sentiment towards the financial services provider. Morningstar Investment Services LLC increased its holdings by 1.2% during the fourth quarter, now owning 22,937 shares valued at $759,000. Similarly, Penserra Capital Management LLC raised its stake by 8.7%, now holding 3,568 shares worth $116,000.
CIBC Asset Management Inc also joined in on the action with a marginal increase of 0.3%, resulting in ownership of 121,171 shares valued at $3,976,000. Mercer Global Advisors Inc. ADV followed suit with a modest increase of 1.7%, making their total holdings amount to 18,752 shares worth $599,000.
Lastly, Meiji Yasuda Asset Management Co Ltd. saw fit to raise its stake by 1.5% during the fourth quarter. They now own an impressive 25,098 shares valued at $823,000.
These moves from institutional investors and hedge funds indicate a collective investment stance towards Fifth Third Bancorp and suggest that there may be underlying factors driving such decisions.
On Friday’s trading session on NASDAQ FITB opened at $27.44 per share. It is worth noting that the company has seen a range of share prices over the last year with a low of $22.11 and a high of $38.06.
Considering financial ratios relevant to evaluating companies in this industry sector; Fifth Third Bancorp boasts a current ratio of 0.79 and quick ratio of 0.78 alongside a debt-to-equity ratio of 0.78 as of September 17th, 2023.
With regards to market capitalization,Fifth Third Bancorp stands at approximately $18.68 billion and has maintained a price-to-earnings (P/E) ratio of 7.80. Additionally, it has a price-to-earnings-growth (PEG) ratio of 0.99 and a beta of 1.21.
Investors may find interest in the fact that Fifth Third Bancorp recently disclosed an increase in its quarterly dividend, with stockholders set to receive $0.35 on Monday, October 16th. This represents a rise from the company’s previous quarterly dividend of $0.33 and equates to an annualized dividend of $1.40, providing shareholders with a 5.10% yield.
As for analyst reports on FITB, there have been recent developments worth noting. Royal Bank of Canada adjusted their target price from $36.00 to $34.00 while reiterating an “outperform” rating in a research note dated July 21st, bringing attention to potential upside momentum for the stock.
Morgan Stanley also expressed their sentiment through an “equal weight” rating and gave FITB shares a target price of $28.00 on July 25th.
Meanwhile, Wedbush raised its price objective to $33.00 from $32.00 in a research note published on July 21st, maintaining an “outperform” rating.
On the other hand, Wells Fargo & Company decreased its price objective from $40.00 to $35.00 in another research note released on June 15th.
Lastly, Piper Sandler echoed Wells Fargo’s sentiment by dropping their price objective from $32.00 to $31 and staying neutral towards FITB shares during their June 15th analysis.
With this combination of ratings, six analysts have designated the stock as a hold while eight analysts view FITB as a buy opportunity.
The consensus rating suggested by Bloomberg is “Moderate Buy”, with a corresponding consensus price target established at approximately $32.50.
Overall, these recent developments among institutional investors and analyst evaluations may contribute to perplexity in understanding the investor sentiment and implications for Fifth Third Bancorp moving forward. Users can refer to the given date of September 17, 2023, as a point of reference for the information provided.
