Summit Investment Advisors Boosts Stake in Fifth Third Bancorp by 23.5%

Summit Investment Advisors Inc. has increased its holdings in Fifth Third Bancorp (NASDAQ: FITB) by 23.5% during the first quarter of 2023. According to the company’s latest 13F filing with the Securities and Exchange Commission, Summit now owns 63,095 shares of the financial services firm after acquiring an additional 11,986 shares in the recent quarter. The total value of Summit’s holdings in Fifth Third Bancorp is approximately $2.473 million.

Other institutional investors have also adjusted their positions in Fifth Third Bancorp. For example, Charles Schwab Investment Management Inc. increased its stake by 6.1%, bringing its total to 22,908,401 shares, valued at around $898 million. Similarly, Invesco Ltd. raised its stake by 5.1% to 17,736,353 shares, worth approximately $695 million. Additionally, Nuveen LLC entered a new investment in Fifth Third Bancorp valued at about $334.8 million. The data indicates that institutional investors and hedge funds collectively own 83.79% of the company’s stock.

Analyst Ratings and Stock Performance

Recent assessments from equity research analysts have generally favored Fifth Third Bancorp. On October 7, 2023, Janney Montgomery Scott revised its price target for the bank from $50.00 to $51.00, maintaining a “buy” rating. Other firms, including Cowen and Truist Financial, have also reiterated their “buy” ratings, with price targets ranging from $48.00 to $58.00. Analysts currently rate Fifth Third Bancorp with a consensus of “Moderate Buy,” with an average target price of $50.35.

In the latest trading session, shares of Fifth Third Bancorp opened at $42.87. The company has experienced fluctuations over the past year, with a low of $32.25 and a high of $49.07. The bank’s market capitalization stands at $28.38 billion, with a price-to-earnings (P/E) ratio of 12.80 and a beta of 0.98.

The recent quarterly earnings report, released on October 17, 2023, indicated that Fifth Third Bancorp achieved earnings per share (EPS) of $0.93, surpassing analyst predictions of $0.87. Revenue for the quarter reached $2.31 billion, slightly below the estimated $2.34 billion. The firm’s net margin stood at 18.67% with a return on equity of 13.41%. Compared to the same quarter last year, revenue increased by 7.9%.

Dividends and Insider Activity

Fifth Third Bancorp recently announced a quarterly dividend of $0.40 per share, which was paid on October 15, 2023. This marks an increase from the previous dividend of $0.37, reflecting a commitment to returning value to shareholders. The annualized dividend now amounts to $1.60, presenting a dividend yield of 3.7%.

In another significant development, Director Evan Bayh purchased 3,000 shares of Fifth Third Bancorp on October 20, 2023, at an average price of $41.22 per share, totaling $123,660. This purchase increased his ownership by 3.66%, bringing his total holdings to 84,942 shares, valued at approximately $3.5 million. Company insiders hold a mere 0.53% of the stock.

Fifth Third Bancorp operates as the bank holding company for Fifth Third Bank, providing various financial products and services across the United States. It operates through three primary segments: Commercial Banking, Consumer and Small Business Banking, and Wealth and Asset Management.

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