One of Fifth Third Bancorp’s (NASDAQ:FITB) Directors, Bryan Daniels, recently bought shares of the company worth $1.5 million. FITB is a financial services company that provides banking, investment, and insurance services, serving customers across the United States.
As per an SEC filing, Daniels bought 64,500 shares of FITB at a weighted average price of $23.31 per share on October 30. The total value of the stock in his portfolio currently stands at about $8 million.
Investors may benefit from keeping an eye on transactions made by key insiders, as these transactions typically reflect their confidence in the company’s prospects. Interestingly, TipRanks offers daily insider transactions as well as a list of top corporate insiders. It also provides a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.
Recent Developments
It is worth mentioning that the purchase comes after the company reported better-than-expected third-quarter results on October 19. Fifth Third’s performance benefitted from strong fee growth, higher deposits, and cost control measures.
Following the earnings release, seven analysts rated FITB stock a Buy, while three maintained a Hold. Among the optimistic analysts, Mike Mayo from Wells Fargo pointed to FITB’s reduction in risk-weighted assets (RWA) as a significant factor contributing to its performance. Although there were some drawbacks, such as securities losses and the unlikelihood of immediate buybacks, Mayo sees Fifth Third Bancorp as a favorable investment.
Is Fifth Third Stock a Good Buy?
Fifth Third has a strong track record in capital deployment, having increased dividends for the past nine years. FITB currently boasts a dividend yield of 5.7%. This underscores the company’s dedication to enhancing shareholder value.
Turning to Wall Street, analysts have a Moderate Buy consensus rating on FITB stock based on 11 Buys and five Holds assigned in the past three months. Meanwhile, the average price target of $31.07 per share implies about 31.4% upside potential.
