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Dissecting the Insider Trading Patterns of Fifth Third Bancorp (FITB)

Recent insider trends for Fifth Third Bancorp (NASDAQ:FITB) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on FITB is anything to go by, investors should pay attention.

Institutions own 83.02% of Fifth Third Bancorp (FITB)’s shares. The total value of these holdings, in millions, is $16,208. Among active positions in the latest quarter, 242 holders increased their positions by a total of 39.28 million shares, 345 holders decreased the positions by a total of 53.79 million shares, and 123 holders held their positions. This works out to a net decrease in ownership of 14.51 million shares, and suggests that institutions are feeling bearish about the stock.

Among new and sold out positions, 61 holders initiated new positions by a total of 7.36 million shares and 69 holders exited their positions by a total of 4.63 million shares. This nets out to an increase of 2.73 million shares and is a bullish sign for FITB.

In the last three months, insiders executed a total of 4 trades. 4 were sells. Insider ownership decreased by a total of 64260 shares, which suggests that FITB’s key executives are feeling less optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 25 buys and 50 sells, and ownership decreased by a net of 252462 shares.



Short interest is another tool that analysts use to gauge investor sentiment. It represents the number of a stock’s shares that are being shorted by investors. Fifth Third Bancorp (NASDAQ:FITB)’s short interest is 18.5 million shares, or % of the float. This represents a decrease of -27% in the number of shares being shorted compared to the previous reading, and implies that investors felt less pessimistic about the stock during the past two weeks.

Given what the insider ownership patterns are saying, it makes sense to consider the technicals to see if these pieces of information reach the same conclusion about the outlook for FITB. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that FITB is a hold, which implies that FITB is expected to perform in line with the market based on prior trading patterns.

Conclusion




Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bearish. Technical indicators (also) suggest that Fifth Third Bancorp (NASDAQ:FITB) is fairly valued.

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