How Confident Are Insiders About Fifth Third Bancorp (FITB)?

On November 29, 2019, Fifth Third Bancorp (NASDAQ:FITB) shares lost -0.33% or -0.1 points to close at $30.19 with a thin trading volume of 1.686 million shares. It opened the trading session at $30.18, the shares rose to $30.49 and dropped to $30.12, the range by which the price of stock traded the whole day. The company now has a market cap of $21.4 billion and currently has 709.19 million outstanding shares. Fifth Third Bancorp (FITB) stock has accumulated 3.11 percent of market value in 21 trading days.

FITB stock’s trailing 3-year beta is 1.41, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was $3.07 share in the trailing 52 weeks. The stock’s value surged 28.3 percent year to date (YTD) compared to a rise of 10.1 percent in 52 week’s period. The firm’s shares are still trading -2.27 percent below its 1-year high of $30.89 and 36.48 percent up from 52-week low of $22.12. The average consensus ranking on the company is 2.3, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.

Fifth Third Bancorp (FITB) is most likely going to rise 3.35 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $35-month high price target. This represents a whopping 15.93 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $31, which means a return possibility of 2.68 percent in comparison with the closing price of the stock of $30.19 on November 29. The lowest price set for the stock is $27 — just above -10.57 percent from FITB share price now.

Past records have indicated that shares in Fifth Third Bancorp rose on 23 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of FITB’s Q4 earnings on January 28. Analysts are predicting revenue to climb 17.3 percent to $1.94B in the financial fourth quarter, while EPS will soar by about 4.35 percent to $0.72 per share. In the last quarter, it earnings of $0.75 per share came better than the $0.59426, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $1.99B, topping the $1.94B analysts had expected. Earnings are seen to rise by 23.8 percent this year, 5.64 percent in the coming year and the trend continues by 13.11 percent every year in the next 5 years.

Let’s take a glimpse at some insider activity at Fifth Third Bancorp (NASDAQ:FITB) and observe the pattern. The earliest insider trade happened on 11/05/2019. McHugh Philip parted with a total of 36.38 thousand shares of the firm at average share price of $30.25. The total amount for the sale was set at $1.1 million. On completing this exchange, the Executive Vice President account balance was 134.18 thousand shares. The stock lost -0.2 percent from that insider sale. On 10/01/2019, Spence Timothy, EVP, did a sale of 5 thousand shares at a price of $27.52 per share. This got rid of 137.6 thousand shares from the insider’s fortune and the stock experienced a 9.7 percent rally in price since the news became public. This exchange saw 147.67 thousand shares get out from the EVP account.

On 09/04/2019, Director Bayh Evan recorded a purchase transaction valued at $103.72 thousand. The purchase at $25.93 a share has added 4 thousand shares into the insider’s portfolio position. Meanwhile, shares price witnessed 16.43 percent increase since the transaction reporting date. The company insider is left with 48.52 thousand shares remaining in the account. ANDERSON LARS C, who works as EVP & COO at the company, performed a sale of 25 thousand shares in a transaction worth $743.75 thousand. The disposal recorded on 07/24/2019 was priced at $29.75 per share. The stock price soared 1.48 percent since the transaction. ANDERSON LARS C currently holds a stake of 241.58 thousand in FITB stock which is worth $7.29 million after the insider selling.

The stock is lingering around the initial support level of $30.04. After this, the following support is at the zone of $29.9. Up until the time the FITB stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 64.01 on the daily chart, and this may be a cause for concern. In case the price goes below $29.9 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $30.41 level may cause a pull-back move approaching $30.64 mark.

Fifth Third Bancorp (FITB) shares are trading at a P/E ratio of 10 times earnings posted in the trailing 12 months. The industry FITB deals with has an average P/E of 11.5. Its P/B ratio is standing at 1.1X compared to the 1.3 industry average. It is additionally sporting a 3 on the Price-to-Sales ratio, compared to the industry’s P/S average of 2.5.