Short Interest in First BanCorp. (NYSE:FBP) Grows By 55.2%

Key Points

• First BanCorp. experienced a substantial increase in short interest in August, rising by 55.2% to a total of 3,710,000 shares.
• The company reported quarterly earnings of $0.50 EPS, exceeding analysts' expectations, but its revenue fell short of estimates at $246.81 million.
• First BanCorp. declared a quarterly dividend of $0.18 per share, representing a 3.3% yield, with the payment scheduled for September 12th.

First BanCorp. (NYSE:FBP - Get Free Report) was the recipient of a large increase in short interest during the month of August. As of August 15th, there was short interest totaling 3,710,000 shares, an increase of 55.2% from the July 31st total of 2,390,000 shares. Currently, 2.4% of the company's shares are sold short. Based on an average trading volume of 1,150,000 shares, the days-to-cover ratio is currently 3.2 days. Based on an average trading volume of 1,150,000 shares, the days-to-cover ratio is currently 3.2 days. Currently, 2.4% of the company's shares are sold short.

Analysts Set New Price Targets

Separately, Wells Fargo & Company upped their price target on shares of First BanCorp. from $22.00 to $25.00 and gave the company an "overweight" rating in a research report on Thursday, July 10th. Three analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $24.00.

Insider Activity

In related news, CEO Aurelio Aleman sold 50,000 shares of the stock in a transaction on Friday, August 22nd. The shares were sold at an average price of $22.30, for a total transaction of $1,115,000.00. Following the transaction, the chief executive officer owned 1,059,547 shares of the company's stock, valued at approximately $23,627,898.10. This trade represents a 4.51% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 2.30% of the company's stock.

Hedge Funds Weigh In On First BanCorp.

A number of institutional investors and hedge funds have recently made changes to their positions in FBP. Norges Bank bought a new stake in shares of First BanCorp. in the 2nd quarter worth approximately $41,404,000. Wellington Management Group LLP purchased a new position in First BanCorp. during the first quarter valued at $28,344,000. Nuveen LLC purchased a new position in First BanCorp. during the first quarter valued at $15,963,000. Millennium Management LLC boosted its holdings in First BanCorp. by 381.9% in the fourth quarter. Millennium Management LLC now owns 948,153 shares of the bank's stock worth $17,626,000 after acquiring an additional 751,413 shares in the last quarter. Finally, Qube Research & Technologies Ltd grew its stake in shares of First BanCorp. by 82.9% in the second quarter. Qube Research & Technologies Ltd now owns 1,434,382 shares of the bank's stock worth $29,878,000 after acquiring an additional 649,987 shares during the last quarter. Institutional investors own 97.91% of the company's stock.

First BanCorp. Stock Down 1.4%

Shares of FBP stock traded down $0.32 during midday trading on Friday, reaching $21.73. 643,733 shares of the stock were exchanged, compared to its average volume of 906,836. First BanCorp. has a 1 year low of $16.40 and a 1 year high of $22.60. The firm has a market cap of $3.49 billion, a PE ratio of 11.56, a price-to-earnings-growth ratio of 1.37 and a beta of 0.97. The company's 50 day moving average is $21.54 and its two-hundred day moving average is $20.17. The company has a current ratio of 0.80, a quick ratio of 0.80 and a debt-to-equity ratio of 0.17.

First BanCorp. (NYSE:FBP - Get Free Report) last released its quarterly earnings results on Tuesday, July 22nd. The bank reported $0.50 earnings per share for the quarter, beating the consensus estimate of $0.47 by $0.03. The company had revenue of $246.81 million for the quarter, compared to analyst estimates of $250.73 million. First BanCorp. had a return on equity of 17.54% and a net margin of 24.71%.During the same period in the previous year, the company posted $0.46 earnings per share. On average, equities research analysts predict that First BanCorp. will post 1.85 EPS for the current year.

First BanCorp. Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 12th. Investors of record on Thursday, August 28th will be paid a dividend of $0.18 per share. The ex-dividend date of this dividend is Thursday, August 28th. This represents a $0.72 annualized dividend and a yield of 3.3%. First BanCorp.'s payout ratio is presently 38.30%.

About First BanCorp.

First BanCorp. operates as a bank holding company for FirstBank Puerto Rico that provides a range of financial products and services to consumers and commercial customers. The company operates through six segments: Commercial and Corporate Banking, Mortgage Banking, Consumer (Retail) Banking, Treasury and Investments, United States Operations, and Virgin Islands Operations.