Fintel reports that on October 20, 2023, RBC Capital maintained coverage of Fifth Third Bancorp (NASDAQ:FITB) with a Outperform recommendation.

Analyst Price Forecast Suggests 38.88% Upside

As of October 5, 2023, the average one-year price target for Fifth Third Bancorp is 32.34. The forecasts range from a low of 28.28 to a high of $35.70. The average price target represents an increase of 38.88% from its latest reported closing price of 23.29.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Fifth Third Bancorp is 9,526MM, an increase of 15.65%. The projected annual non-GAAP EPS is 4.04.

Fifth Third Bancorp Declares $0.35 Dividend

On September 11, 2023 the company declared a regular quarterly dividend of $0.35 per share ($1.40 annualized). Shareholders of record as of September 30, 2023 received the payment on October 16, 2023. Previously, the company paid $0.33 per share.

At the current share price of $23.29 / share, the stock’s dividend yield is 6.01%.

Looking back five years and taking a sample every week, the average dividend yield has been 3.80%, the lowest has been 2.46%, and the highest has been 8.88%. The standard deviation of yields is 1.10 (n=236).

The current dividend yield is 2.01 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 0.37. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 0.30%, demonstrating that it has increased its dividend over time.

What is the Fund Sentiment?

There are 1511 funds or institutions reporting positions in Fifth Third Bancorp. This is a decrease of 76 owner(s) or 4.79% in the last quarter. Average portfolio weight of all funds dedicated to FITB is 0.21%, a decrease of 7.70%. Total shares owned by institutions increased in the last three months by 0.23% to 625,501K shares. The put/call ratio of FITB is 0.53, indicating a bullish outlook.

What are Other Shareholders Doing?

FITB / Fifth Third Bancorp Shares Held by Institutions

Price T Rowe Associates holds 44,882K shares representing 6.59% ownership of the company. In it’s prior filing, the firm reported owning 43,180K shares, representing an increase of 3.79%. The firm increased its portfolio allocation in FITB by 114.76% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 21,286K shares representing 3.13% ownership of the company. In it’s prior filing, the firm reported owning 21,126K shares, representing an increase of 0.75%. The firm decreased its portfolio allocation in FITB by 8.54% over the last quarter.

Jpmorgan Chase holds 18,888K shares representing 2.77% ownership of the company. In it’s prior filing, the firm reported owning 18,034K shares, representing an increase of 4.52%. The firm increased its portfolio allocation in FITB by 632.02% over the last quarter.

Invesco holds 17,928K shares representing 2.63% ownership of the company. In it’s prior filing, the firm reported owning 16,285K shares, representing an increase of 9.16%. The firm increased its portfolio allocation in FITB by 999.63% over the last quarter.

VFINX – Vanguard 500 Index Fund Investor Shares holds 16,208K shares representing 2.38% ownership of the company. In it’s prior filing, the firm reported owning 15,946K shares, representing an increase of 1.62%. The firm decreased its portfolio allocation in FITB by 9.43% over the last quarter.

Fifth Third Bancorp Background Information
(This description is provided by the company.)

Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio, and the indirect parent company of Fifth Third Bank, National Association, a federally chartered institution. As of December 31, 2020, the Company had $205 billion in assets and operated 1,134 full-service Banking Centers, and 2,397 Fifth Third branded ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Georgia, North Carolina and South Carolina. In total, Fifth Third provides its customers with access to approximately 52,000 fee-free ATMs across the United States. Fifth Third operates four main businesses: Commercial Banking, Branch Banking, Consumer Lending, and Wealth & Asset Management. Fifth Third is among the largest money managers in the Midwest and, as of December 31, 2020, had $434 billion in assets under care, of which it managed $54 billion for individuals, corporations and not-for-profit organizations through its Trust and Registered Investment Advisory businesses.

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This story originally appeared on Fintel.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Source: Nasdaq

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