OFG Bancorp (NYSE:OFG) Trading 6.3% Higher on Earnings Beat

Shares of OFG Bancorp (NYSE:OFG) were up 6.3% on Tuesday following a better than expected earnings announcement. The stock traded as high as $45.06 and last traded at $45.2430. Approximately 109,631 shares were traded during mid-day trading, a decline of 67% from the average daily volume of 336,725 shares. The stock had previously closed at $42.55.

The bank reported $1.26 earnings per share for the quarter, beating the consensus estimate of $1.08 by $0.18. The firm had revenue of $185.80 million for the quarter, compared to analysts’ expectations of $179.16 million. OFG Bancorp had a return on equity of 15.21% and a net margin of 22.72%.The company’s revenue was up 4.2% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.00 EPS.

OFG Bancorp Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, April 15th. Shareholders of record on Tuesday, March 31st were issued a dividend of $0.35 per share. This is a boost from OFG Bancorp’s previous quarterly dividend of $0.30. This represents a $1.40 annualized dividend and a yield of 3.1%. The ex-dividend date of this dividend was Tuesday, March 31st. OFG Bancorp’s dividend payout ratio is presently 30.57%.

OFG Bancorp announced that its Board of Directors has approved a stock repurchase program on Wednesday, January 28th that authorizes the company to repurchase $200.00 million in outstanding shares. This repurchase authorization authorizes the bank to reacquire up to 12% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s leadership believes its shares are undervalued.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on OFG shares. Zacks Research upgraded shares of OFG Bancorp from a “strong sell” rating to a “hold” rating in a research note on Wednesday, January 14th. Piper Sandler initiated coverage on OFG Bancorp in a research note on Thursday, January 15th. They issued a “neutral” rating and a $45.00 price target for the company. Keefe, Bruyette & Woods restated a “market perform” rating and set a $43.00 price target (down from $50.00) on shares of OFG Bancorp in a research note on Friday, January 23rd. Weiss Ratings reiterated a “buy (b-)” rating on shares of OFG Bancorp in a research note on Monday, December 29th. Finally, Truist Financial cut their price target on shares of OFG Bancorp from $48.00 to $44.00 and set a “buy” rating on the stock in a research note on Monday, January 26th. Three investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $45.83.

Insider Transactions at OFG Bancorp

In related news, Director Annette Franqui purchased 1,540 shares of the company’s stock in a transaction on Friday, February 20th. The stock was acquired at an average cost of $42.06 per share, for a total transaction of $64,772.40. Following the completion of the transaction, the director directly owned 3,440 shares in the company, valued at approximately $144,686.40. The trade was a 81.05% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is available at this link. Corporate insiders own 1.23% of the company’s stock.

Institutional Trading of OFG Bancorp

Several hedge funds have recently added to or reduced their stakes in OFG. First Trust Advisors LP lifted its stake in OFG Bancorp by 8.8% in the fourth quarter. First Trust Advisors LP now owns 2,040,331 shares of the bank’s stock worth $83,613,000 after acquiring an additional 164,818 shares during the last quarter. Qube Research & Technologies Ltd raised its holdings in shares of OFG Bancorp by 31.6% in the 2nd quarter. Qube Research & Technologies Ltd now owns 554,208 shares of the bank’s stock valued at $23,720,000 after purchasing an additional 133,046 shares in the last quarter. American Century Companies Inc. lifted its position in shares of OFG Bancorp by 8.1% during the 3rd quarter. American Century Companies Inc. now owns 1,458,026 shares of the bank’s stock worth $63,410,000 after purchasing an additional 108,635 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC purchased a new stake in shares of OFG Bancorp during the 4th quarter worth $4,224,000. Finally, Thrivent Financial for Lutherans acquired a new position in shares of OFG Bancorp during the third quarter worth $4,272,000. Institutional investors and hedge funds own 92.73% of the company’s stock.

OFG Bancorp Stock Up 6.3%

The stock has a market cap of $1.92 billion, a PE ratio of 9.88 and a beta of 0.67. The firm has a fifty day moving average of $40.97 and a 200 day moving average of $40.86. The company has a quick ratio of 0.87, a current ratio of 0.87 and a debt-to-equity ratio of 0.33.

OFG Bancorp Company Profile

OFG Bancorp, through its principal subsidiary Oriental Bank, is a financial holding company headquartered in San Juan, Puerto Rico. The company provides a wide range of banking services, including commercial and consumer deposit accounts, small business loans, corporate lending, treasury management, and cash management solutions. Its consumer offerings encompass personal checking and savings accounts, credit cards, and electronic banking platforms designed to serve retail customers across its markets.

In addition to traditional banking products, OFG Bancorp offers mortgage origination and servicing, as well as wealth management and trust services for high‐net‐worth individuals and institutional clients.