Bank of Nova Scotia Purchases New Position in Credicorp Ltd. $BAP

Key Points

• Bank of Nova Scotia acquired 799,051 Credicorp shares worth approximately $311.3 million during the second quarter, representing about 0.85% of the company. Institutional investors and hedge funds collectively own 89.81% of BAP.
• Credicorp exceeded quarterly expectations, reporting $7.33 in EPS versus the $7.31 consensus estimate and $1.96 billion in revenue versus $1.82 billion expected. The bank posted a 20.52% return on equity and a 25.04% net margin.
• Analyst sentiment is broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $418.40; recent targets range as high as $480. Credicorp shares opened at $378.51, below the consensus target.

Bank of Nova Scotia bought a new stake in Credicorp Ltd. (NYSE:BAP - Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm bought 799,051 shares of the bank's stock, valued at approximately $311,294,000. Bank of Nova Scotia owned approximately 0.85% of Credicorp at the end of the most recent reporting period.

Several other institutional investors also recently modified their holdings of BAP. BlackRock Inc. acquired a new stake in Credicorp during the 2nd quarter worth approximately $1,933,666,000. Capital World Investors increased its holdings in Credicorp by 34.7% in the fourth quarter. Capital World Investors now owns 2,195,404 shares of the bank's stock valued at $630,081,000 after purchasing an additional 565,490 shares during the period. Royal Bank of Canada raised its position in Credicorp by 0.8% during the 1st quarter. Royal Bank of Canada now owns 1,721,926 shares of the bank's stock worth $584,042,000 after purchasing an additional 13,249 shares during the last quarter. Invesco Ltd. raised its position in Credicorp by 2.3% during the 4th quarter. Invesco Ltd. now owns 1,380,791 shares of the bank's stock worth $396,287,000 after purchasing an additional 31,383 shares during the last quarter. Finally, State Street Corp raised its position in Credicorp by 5.5% during the 4th quarter. State Street Corp now owns 1,336,882 shares of the bank's stock worth $383,685,000 after purchasing an additional 69,329 shares during the last quarter. 89.81% of the stock is currently owned by institutional investors and hedge funds.

Insider Transactions at Credicorp

In related news, CEO Diego Antonio Cavero sold 3,500 shares of the stock in a transaction on Friday, June 5th. The shares were sold at an average price of $319.00, for a total transaction of $1,116,500.00. Following the transaction, the chief executive officer directly owned 7,307 shares of the company's stock, valued at $2,330,933. This represents a 32.39% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 15.90% of the stock is currently owned by corporate insiders.

Credicorp Stock Performance

BAP stock opened at $378.51 on Friday. The stock has a 50-day moving average price of $385.34 and a 200-day moving average price of $354.11. Credicorp Ltd. has a 1-year low of $230.45 and a 1-year high of $413.24. The company has a current ratio of 1.00, a quick ratio of 1.02 and a debt-to-equity ratio of 0.38. The firm has a market cap of $35.72 billion, a PE ratio of 14.02, a price-to-earnings-growth ratio of 0.74 and a beta of 0.90.

Credicorp (NYSE:BAP - Get Free Report) last announced its earnings results on Friday, August 14th. The bank reported $7.33 EPS for the quarter, beating the consensus estimate of $7.31 by $0.02. The company had revenue of $1.96 billion for the quarter, compared to analyst estimates of $1.82 billion. Credicorp had a return on equity of 20.52% and a net margin of 25.04%. As a group, equities research analysts expect that Credicorp Ltd. will post 29.41 earnings per share for the current year.

Analyst Ratings Changes

A number of equities research analysts have commented on BAP shares. HSBC upgraded Credicorp from a "hold" rating to a "buy" rating and upped their price target for the company from $320.00 to $350.00 in a research report on Tuesday, May 19th. UBS Group raised their price objective on Credicorp from $412.00 to $473.00 and gave the stock a "buy" rating in a research report on Thursday. The Goldman Sachs Group lifted their price objective on Credicorp from $329.00 to $374.00 and gave the stock a "neutral" rating in a research note on Thursday, July 16th. JPMorgan Chase & Co. cut Credicorp from an "overweight" rating to a "neutral" rating and set a $415.00 target price on the stock. in a report on Monday, June 15th. Finally, Morgan Stanley raised shares of Credicorp from an "equal weight" rating to an "overweight" rating and increased their target price for the company from $375.00 to $480.00 in a research report on Wednesday, June 17th. Four research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $418.40.

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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