Credicorp (NYSE:BAP) Shares Down 5.3% - Here's Why

Key Points

• Shares fell 5.3% intraday to about $338.49 from a $357.59 close, with unusually light trading volume (61,574 shares, down ~87% vs. average).
• Analyst sentiment is mixed: the consensus is a “Moderate Buy” but the average price target of $297.60 is below the current price, and recent notes include downgrades (Wall Street Zen, Zacks) and a neutral raise from Goldman Sachs to a $330 target.
• Credicorp shows solid fundamentals—market cap ~$25.9B, P/E 13.36, last quarter EPS $5.91 with a 24.5% net margin and 20.4% ROE—and about 89.8% institutional ownership.

Credicorp Ltd. (NYSE:BAP - Get Free Report)'s stock price dropped 5.3% during trading on Wednesday . The company traded as low as $345.03 and last traded at $338.4870. Approximately 61,574 shares changed hands during mid-day trading, a decline of 87% from the average daily volume of 463,193 shares. The stock had previously closed at $357.59.

Wall Street Analysts Forecast Growth

BAP has been the subject of several recent analyst reports. Wall Street Zen cut shares of Credicorp from a "buy" rating to a "hold" rating in a research report on Saturday, December 20th. The Goldman Sachs Group lifted their price target on Credicorp from $293.00 to $330.00 and gave the stock a "neutral" rating in a report on Tuesday, February 17th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Credicorp in a research report on Monday, December 29th. Finally, Zacks Research downgraded Credicorp from a "strong-buy" rating to a "hold" rating in a report on Tuesday, February 24th. Four research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $297.60.

Credicorp Price Performance

The stock's 50-day moving average is $340.59 and its 200 day moving average is $301.93. The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.07 and a current ratio of 1.02. The stock has a market capitalization of $25.85 billion, a PE ratio of 13.36, a P/E/G ratio of 0.81 and a beta of 0.93.

Credicorp (NYSE:BAP - Get Free Report) last announced its quarterly earnings results on Sunday, February 1st. The bank reported $5.91 earnings per share for the quarter. Credicorp had a net margin of 24.53% and a return on equity of 20.43%. The firm had revenue of $1.81 billion during the quarter. As a group, equities analysts expect that Credicorp Ltd. will post 21.9 earnings per share for the current year.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Brown Brothers Harriman & Co. purchased a new stake in Credicorp in the third quarter valued at approximately $35,000. Raymond James Financial Inc. acquired a new position in shares of Credicorp in the 2nd quarter valued at $38,000. Spire Wealth Management acquired a new position in shares of Credicorp in the 3rd quarter valued at $42,000. Kestra Advisory Services LLC purchased a new stake in Credicorp in the 4th quarter valued at $42,000. Finally, Mirae Asset Global Investments Co. Ltd. purchased a new stake in Credicorp in the 4th quarter valued at $46,000. Hedge funds and other institutional investors own 89.81% of the company's stock.

About Credicorp

Credicorp Ltd. NYSE: BAP is a Lima-based financial services holding company that operates a diversified group of banking, insurance, and investment businesses. Established in the mid-1990s, Credicorp's principal subsidiaries include Banco de Crédito del Perú (BCP), Mibanco (microfinance), Credicorp Capital (investment banking and asset management) and Pacífico Seguros (insurance). The company serves retail, commercial and corporate clients and is one of the largest financial conglomerates in Peru.

Through Banco de Crédito del Perú and its retail network, Credicorp provides a full suite of banking products including deposit accounts, consumer and commercial loans, mortgages, payment and transaction services, and digital banking solutions.

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