The Zacks Analyst Blog Highlights: Fifth Third Bancorp, Vantiv, Meta Financial
Group, Flagstar Bancorp and Navistar International
CHICAGO, March 22, 2013
CHICAGO, March 22, 2013 /PRNewswire/ --Zacks.com announces the list of stocks
featured in the Analyst Blog. Every day the Zacks Equity Research analysts
discuss the latest news and events impacting stocks and the financial markets.
Stocks recently featured in the blog include Fifth Third Bancorp
(Nasdaq:FITB), Vantiv, Inc. (NYSE:VNTV), Meta Financial Group, Inc.
(Nasdaq:CASH), Flagstar Bancorp Inc. (NYSE:FBC) and Navistar International
Get the most recent insight from Zacks Equity Research with the free Profit
from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Thursday's Analyst Blog:
Fifth Third Hikes Dividend
According to its capital plan under the 2012 Comprehensive Capital Analysis &
Review (CCAR), Fifth Third Bancorp (Nasdaq:FITB) increased its dividend by 10%
to 11 cents. The increased dividend will be paid on Apr 18, 2013 to
shareholders of record as of Mar 29.
Further, following the approval of its capital plan under the 2013 CCAR, the
company has proposed another dividend hike of 9% to 12 cents per share, which
is subject to the approval of the board of directors. The increase may take
place anytime between the second quarter of 2013 and the first quarter of
The company also announced a new share repurchase authorization of up to 100
million shares, replacing the previous authorization in 2012. The previous
authorization had roughly 54 million shares outstanding.
Fifth Third's capital plan for 2013 included potential share repurchases worth
up to $984 million through the first quarter of 2014, along with additional
incremental repurchases with any after-tax gains from the sale of Vantiv, Inc.
The approval for the dividend hike justifies Fifth Third's capital strength
and will enhance investors' confidence in the stock. This move represents
fourth dividend increase post the dividend cuts made by Fifth Third during the
financial crisis. The company had drastically slashed its dividend to 15 cents
per share from 44 cents in June 2008 and further lowered it to a penny in
December that year.
However, in March last year, the company raised it to 6 cents and again
advanced it to 8 cents in September. Later, in October, the company upped it
to 10 cents.
Going forward, Fifth Third remains well positioned to benefit from a
recovering economy due to a diversified traditional banking platform. Its
diverse revenue mix, improved credit quality and strong capital position serve
as positive catalyst for the stock. However, the sluggish macro environment
and stringent regulations are causes of concern.
Fifth Third currently carries a Zacks Rank #2 (Buy). Other banking stocks that
are performing better than Fifth Third include Meta Financial Group, Inc.
(Nasdaq:CASH) and Flagstar Bancorp Inc. (NYSE:FBC). Both the stocks carry a
Zacks Rank #1 (Strong Buy).
Navistar Amends Billion-Dollar Loan
Navistar International Corporation (NYSE:NAV) announced the amendment of its
$1 billion senior secured term loan facility. Under the amendment, maturity
date was extended from Jul 16, 2014 to Aug 17, 2017 and it is expected to
include an interest rate repricing.
On Aug 2012, Navistar, had borrowed an aggregate principal amount of $1
billion under the Term Loan Credit Facility. The proceeds from this loan were
used to repay all borrowings under Navistar's existing Asset-Based Credit
Navistar also intended to use the term loan for supporting the adoption of
after-treatment solution, which will accelerate delivery of the company's
next-generation clean engine solution. The facility will also support the
market transition plan for Class 8 engines, thus providing financial
flexibility to the company.
However, the company's interest expenses had increased due to this additional
borrowing. Interest expenses increased $13 million in the first quarter of
fiscal 2013 due to the additional term loan facility.
Apart from the amendment, Navistar also announced that it is planning to offer
$300 million of unsecured debt. The proceeds from this debt will be used to
repay some amount of the term loan.
Warrenville, Ill-based Navistar International manufactures and sells
commercial trucks, mid-range diesel engines, buses, military vehicles and
chassis for motor homes and step-vans. It also provides service parts for
various trucks and trailers. Currently, the company retains a Zacks Rank #3
(Hold) on its stock.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the
latest analysis from Zacks Equity Research. Subscribe to this free newsletter
Zacks.com is a property of Zacks Investment Research, Inc., which was formed
in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in
stock market data that would lead to superior investment results. Amongst his
many accomplishments was the formation of his proprietary stock picking
system; the Zacks Rank, which continues to outperform the market by nearly a 3
to 1 margin. The best way to unlock the profitable stock recommendations and
market insights of Zacks Investment Research is through our free daily email
newsletter; Profit from the Pros. In short, it's your steady flow of
Profitable ideas GUARANTEED to be worth your time! Register for your free
subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance
numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook:
Disclaimer: Past performance does not guarantee future results. Investors
should always research companies and securities before making any investments.
Nothing herein should be construed as an offer or solicitation to buy or sell
Zacks Investment Research
800-767-3771 ext. 9339
SOURCE Zacks Investment Research, Inc.
Press spacebar to pause and continue. Press esc to stop.