Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact email@example.com.
SOURCE Zacks Investment Research, Inc.
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 Corporation (NYSE:NAV).
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 2014.
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. (NYSE:VNTV).
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 Facility.
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 today: http://at.zacks.com/?id=5517
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: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
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 any security.
©2012 PR Newswire. All Rights Reserved.