Top Buys by Directors: Blackburn's $993.7K Bet on FITB

The directors of a company tend to have a unique inside view into the business, so when directors make major buys, investors are wise to take notice. Presumably the only reason a director of a company would choose to take their hard-earned cash and use it to buy stock in the open market, is that they expect to make money — maybe they find the stock very undervalued, or maybe they see exciting progress within the company, or maybe both. So in this series we look at the largest insider buys by company directors over the trailing six month period, one of which was a total of $993.7K by Katherine H. Blackburn, Director at Fifth Third Bancorp (Symbol: FITB).

Purchased Insider Title Shares Price/Share Value
03/13/2020 Katherine H. Blackburn Director 58,800 $16.90 $993,720.00

Blackburn's average cost works out to $16.90/share. In trading on Thursday, bargain hunters could buy shares of Fifth Third Bancorp (Symbol: FITB) and achieve a cost basis lower than Blackburn, with shares changing hands as low as $13.20 per share. It should be noted that Blackburn has collected $0.27/share in dividends since the time of their purchase, so they are currently down 20.3% on their purchase from a total return basis. Shares of Fifth Third Bancorp were changing hands at $13.57 at last check, trading up about 1.4% on Thursday. The chart below shows the one year performance of FITB shares, versus its 200 day moving average:

Fifth Third Bancorp  Chart

Looking at the chart above, FITB's low point in its 52 week range is $11.10 per share, with $31.64 as the 52 week high point — that compares with a last trade of $13.57.

The current annualized dividend paid by Fifth Third Bancorp is $1.08/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 03/30/2020. Below is a long-term dividend history chart for FITB, which can be of good help in judging whether the most recent dividend with approx. 8.0% annualized yield is likely to continue.


Click here to find out which other top insider buys by company directors you need to know about »

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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