Fifth Third Bancorp (FITB) Insider Trading Is Uncovering Many Things

If you can handle volatility, Fifth Third Bancorp (NASDAQ:FITB) is the stock to watch now. The stock closed lower on 06 December. The shares dropped -0.12 points or -0.46 percent at $25.96 with a heavy trade volume of 8.11 million shares. After opening the session at $25.59, the shares went as high as $25.96 and as low as $24.96, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $17.3 billion and now has 667.62 million shares outstanding. Fifth Third Bancorp (FITB) stock has lost -5.84 percent of market value in 21 trading days.

FITB stock has a trailing 3-year beta of 1.18, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $2.74 a share in the trailing twelve months. The stock’s value has fallen -14.44 percent year to date (YTD) against a decline of -15.66 percent in 12 month’s time. The company’s shares still trade -25.12 percent away from its 1-year high of $34.67 and 7.72 percent up from 52-week low of $24.10. The average consensus rating on the company is 2.7, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Fifth Third Bancorp (FITB) will probably climb 23.19 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $37-month high price target. This represents a whopping 42.53 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $32, which represents a return potential of 23.27 percent when compared to the closing price of the stock of $25.96 on Thursday, December 06. The lowest price target for the stock is $27 — slightly more than 4.01 percent from FITB’s current share price.

History has shown that shares in Fifth Third Bancorp have gone up on 19 different earnings reaction days and are predicted to add 0.02 percent when the company reports upcoming earnings. Investors will get their next glimpse of FITB’s Q4 earnings on January 22. Analysts are forecasting revenue to climb 6.6 percent to $1.66B in the fiscal fourth quarter, while earnings are seen soaring by nearly 39.58 percent to $0.67 per share. It earned $0.64 per share, better than the $0.63, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $1.61B, worse than the $1.63B analysts expected. Earnings are estimated to increase by 31.4 percent this year, 9.35 percent next year and continue to increase by 6 percent annually for the next 5 years.

Let’s take a look at some insider activity at Fifth Third Bancorp (NASDAQ:FITB) and see the pattern. The earliest insider trade took place on 03/19/2018. Immaneni Aravind parted with a total of 4 thousand shares of company at average share price of $33.6. The total for the sales was set at $134.4 thousand. After this transaction, the EVP and CTO account balance stood at 21.07 thousand shares. The stock lost -22.74 percent since that insider sale. On 03/16/2018, Mcwilliams Jelena, EVP and CLO, sold 0.57 thousand shares at a price per share of $33.84. This removed 19.22 thousand shares from the insider’s fortune and the stock saw a -23.29 percent retreat in value since the news became public. This transaction left 6.03 thousand shares in the EVP and CLO account.

On 03/05/2018, Director Brumback Emerson L performed a sale transaction worth $100.32 thousand. This sale at $33.44 each has eliminated 3 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -22.37 percent decrease since the transaction was reported. The insider now is left with 50.34 thousand shares remaining in the account. Hazel Mark D, who performs the SVP & Controller job, sold 19.32 thousand shares for $644.84 thousand. The disposal occurred on 02/26/2018 was priced at $33.37 per share. The share price plunged -22.21 percent since the reporting date. Hazel Mark D now left with a stake of 52.42 thousand FITB stock worth $1.36 million after the insider selling.

The stock is currently hovering around the first support level of $25.29. Below this, the next support is placed in the zone of $24.63. Till the time, the FITB stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 35.71 on daily chart, which may remain a cause for comfort. If the price breaks below $24.63 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $26.29 mark may result into a pull-back move towards $26.63 level.

Shares of Fifth Third Bancorp (FITB) are trading at a P/E ratio of 14.38 times earnings reported for the past 12 months. The industry FITB operates in has an average P/E of 19.02. Its P/E ratio went as low as 9.18X and as high as 13.99 over the 5-year span.Further, it is sporting a 3.51 on the Price-to-Sales ratio. Compare this with the industry average P/S of 5.73.