OFG Bancorp (NYSE:OFG) Given Average Recommendation of "Moderate Buy" by Analysts

Key Points

• OFG Bancorp has an average analyst rating of “Moderate Buy”, with six firms covering the stock and a consensus 1-year price target of $47.20.
• The company recently announced a $200 million share buyback program, authorizing repurchases of up to 12% of outstanding shares, which may signal management views the stock as undervalued.
• OFG also declared a quarterly dividend of $0.35 per share, equal to an annualized yield of about 3.2%.

OFG Bancorp (NYSE:OFG - Get Free Report) has earned an average rating of "Moderate Buy" from the six research firms that are covering the stock, Marketbeat.com reports. Three investment analysts have rated the stock with a hold rating, two have assigned a buy rating and one has given a strong buy rating to the company. The average 1-year price objective among analysts that have issued ratings on the stock in the last year is $47.20.

A number of equities analysts recently weighed in on OFG shares. Zacks Research raised OFG Bancorp from a "hold" rating to a "strong-buy" rating in a report on Thursday, May 7th. Wells Fargo & Company raised their price objective on OFG Bancorp from $43.00 to $45.00 and gave the company an "equal weight" rating in a report on Wednesday, April 22nd. Piper Sandler reissued a "neutral" rating and set a $48.00 price objective (up from $43.00) on shares of OFG Bancorp in a report on Wednesday, April 22nd. Keefe, Bruyette & Woods reissued a "market perform" rating and set a $43.00 price objective (down from $50.00) on shares of OFG Bancorp in a report on Friday, January 23rd. Finally, Truist Financial raised their price objective on OFG Bancorp from $44.00 to $50.00 and gave the company a "buy" rating in a report on Wednesday, April 22nd.

Insider Activity

In other OFG Bancorp news, Director Annette Franqui bought 1,540 shares of OFG Bancorp stock in a transaction dated Friday, February 20th. The shares were purchased at an average cost of $42.06 per share, with a total value of $64,772.40. Following the completion of the purchase, the director owned 3,440 shares of the company's stock, valued at approximately $144,686.40. This represents a 81.05% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 1.23% of the company's stock.

Hedge Funds Weigh In On OFG Bancorp

Several hedge funds have recently made changes to their positions in OFG. First Trust Advisors LP increased its stake in shares of OFG Bancorp by 13.8% during the first quarter. First Trust Advisors LP now owns 2,321,924 shares of the bank's stock valued at $93,945,000 after buying an additional 281,593 shares during the period. Qube Research & Technologies Ltd increased its stake in shares of OFG Bancorp by 31.6% during the second quarter. Qube Research & Technologies Ltd now owns 554,208 shares of the bank's stock valued at $23,720,000 after buying an additional 133,046 shares during the period. American Century Companies Inc. increased its stake in shares of OFG Bancorp by 8.1% during the third quarter. American Century Companies Inc. now owns 1,458,026 shares of the bank's stock valued at $63,410,000 after buying an additional 108,635 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC purchased a new position in shares of OFG Bancorp during the fourth quarter valued at approximately $4,224,000. Finally, Thrivent Financial for Lutherans purchased a new position in shares of OFG Bancorp during the third quarter valued at approximately $4,272,000. 92.73% of the stock is owned by hedge funds and other institutional investors.

OFG Bancorp Stock Down 1.1%

Shares of NYSE OFG opened at $43.89 on Friday. OFG Bancorp has a 52 week low of $35.71 and a 52 week high of $46.85. The business has a 50-day simple moving average of $42.21 and a two-hundred day simple moving average of $41.28. The company has a quick ratio of 0.87, a current ratio of 0.87 and a debt-to-equity ratio of 0.33. The company has a market cap of $1.85 billion, a P/E ratio of 9.07 and a beta of 0.72.

OFG Bancorp (NYSE:OFG - Get Free Report) last issued its quarterly earnings results on Tuesday, March 31st. The bank reported $1.26 earnings per share (EPS) for the quarter. The firm had revenue of $185.80 million during the quarter. OFG Bancorp had a return on equity of 15.62% and a net margin of 23.45%. Research analysts anticipate that OFG Bancorp will post 4.75 earnings per share for the current fiscal year.

OFG Bancorp declared that its Board of Directors has approved a share buyback program on Wednesday, January 28th that authorizes the company to repurchase $200.00 million in outstanding shares. This repurchase authorization authorizes the bank to purchase up to 12% of its shares through open market purchases. Shares repurchase programs are often a sign that the company's board of directors believes its shares are undervalued.

OFG Bancorp Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, July 15th. Shareholders of record on Tuesday, June 30th will be paid a $0.35 dividend. This represents a $1.40 dividend on an annualized basis and a yield of 3.2%. The ex-dividend date of this dividend is Tuesday, June 30th. OFG Bancorp's payout ratio is 28.93%.

About OFG Bancorp

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.

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