Fifth Third Bancorp (FITB): Insiders Smell A Bargain?

Fifth Third Bancorp (NASDAQ:FITB) has been upgraded by Raymond James, which now rates the stock as Outperform versus Mkt Perform prior rating , according to a note issued on October 31. Analysts at Nomura, shed their negative views on October 24 by lifting it fromReduce to Neutral. The stock won favor of Wedbush analysts who expressed their confidence in it using an upgrade from Neutral to Outperform on September 04.

Fifth Third Bancorp (FITB) hit an intraday high Tuesday at $27.33. The shares finished at $27.06, after trading as low as $26.87 earlier in the session. It dropped -0.73% in recent trade and currently has a stock-market value of $17.8B. Trading activity significantly weakened as the volume at ready counter decreased to 3,973,874 shares versus 5,837,810 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 5,927,941 shares. The stock is now 12.28% above against its bear-market low of $24.1 on October 23, 2018. It has retreated -28.12% since it’s 52-week high of $34.67 reached in May. Now the market price is down -4.72% on the year and down -10.81% YTD.

FITB’s 50 day simple moving average (SMA 50) price is $27.5 and its 200-day simple moving average (SMA 200) price is $30.28. The company’s stock currently has a total float of 654.5M shares. Its weekly volatility is hovering around 2.1% and felt 2.34% volatility in price over a month. On the upside, the share price will test short term resistance at around $27.3. On a downside, the stock is likely to find some support, which begins at $26.84. The failure to get near-term support could push it to $26.63.

Separately, it has been reported that multiple insider activity took place at Fifth Third Bancorp (FITB). EVP and CTO Immaneni Aravind sold 4,000 shares for $21,071 in transaction occurred on 2018/03/19. After making this transaction, the EVP and CTO owns a direct stake of 134,400 shares, worth $570,181, as per the last closing price. On 2018/03/16 Mcwilliams Jelena, EVP and CLO at FITB, dumped 568 shares at an average price of $33.84 per share. The selling total is valued at $163,280.

Director, Brumback Emerson L had divested 3,000 shares for $50,343 through a trade on 2018/03/05. Following this activity, the insider holds 100,320 shares worth $1,362,282 as of recent close. Wall Street’s most bullish Fifth Third Bancorp (NASDAQ:FITB) analysts are predicting the share price to blow past $37 per share during the next 12 months. The current median share price forecast by them is $32, suggesting that the stock could increase 18.26% in that time frame. The average price target of $31.98 calls for a nearly 18.18% increase in the stock price.

When looking at valuations, Fifth Third Bancorp (FITB) has a cheap P/E of 9.88x as compared to industry average of 19.12x. Moreover, it trades for 9.92 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 1.25x price/book and 3.61x price/sales. Compared to others, Fifth Third Bancorp is in a different league with regards to profitability, having net margins of 43.2%. To put some perspective around this, the industry’s average net margin is 30.03%. FITB’s ROE is 14.4%, which is also considerably worse than the industry’s ROE of 16.22%.

Shares of Fifth Third Bancorp (FITB) have gained 7.4% since the company’s last earnings report. Over the past 12 fiscal quarters, Fifth Third Bancorp (NASDAQ:FITB) has topped consensus earnings estimates in 9 quarters (75%), missed earnings in 0 quarters (0%), whereas at 3 occasion EPS met analyst expectations. FITB last reported earnings on October 23, 2018 when it released Sep-18 results that exceeded expectations. The company raked in $0.64 per share, -73.88% change on the same period last year. That was better than consensus for $0.62. Revenue for the recent quarter stood at $1.61 billion, up 4% on last year and below the $1.63 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $1.65 billion to $1.68 billion, which should be compared with $1.63 billion generated last year. EPS is seen in a range of $0.65 to $0.7, against the $0.56 reported a year ago.