OFG Bancorp (NYSE:OFG) Given Consensus Recommendation of "Hold" by Brokerages

Key Points

• OFG Bancorp received a consensus recommendation of Hold from seven analysts (four holds, three buys) with an average 1‑year price target of $45.83.
• The bank raised its quarterly dividend to $0.35 (annualized $1.40, ~3.3% yield) and authorized a $200 million share buyback program to repurchase up to 12% of outstanding shares.
• OFG slightly beat quarterly expectations (EPS $1.27 vs. $1.16; revenue $185.37M vs. $184.17M), a director bought 1,540 shares at $42.06, and institutional ownership is high at roughly 92.7%.

OFG Bancorp (NYSE:OFG - Get Free Report) has received a consensus recommendation of "Hold" from the seven research firms that are covering the stock, Marketbeat Ratings reports. Four research analysts have rated the stock with a hold recommendation and three have issued a buy recommendation on the company. The average 1-year price objective among analysts that have updated their coverage on the stock in the last year is $45.8333.

OFG has been the topic of several recent research reports. Piper Sandler initiated coverage on shares of OFG Bancorp in a research note on Thursday, January 15th. They issued a "neutral" rating and a $45.00 price objective on the stock. Zacks Research upgraded shares of OFG Bancorp from a "strong sell" rating to a "hold" rating in a research note on Wednesday, January 14th. Truist Financial lowered their price objective 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. Weiss Ratings reiterated a "buy (b-)" rating on shares of OFG Bancorp in a research note on Monday, December 29th. Finally, Keefe, Bruyette & Woods reiterated a "market perform" rating and issued a $43.00 price objective (down from $50.00) on shares of OFG Bancorp in a research note on Friday, January 23rd.

Insider Activity

In related news, Director Annette Franqui acquired 1,540 shares of the business's stock in a transaction that occurred on Friday, February 20th. The stock was bought at an average cost of $42.06 per share, for a total transaction of $64,772.40. Following the purchase, the director owned 3,440 shares in the company, valued at $144,686.40. The trade was a 81.05% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Company insiders own 1.23% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in OFG. Louisiana State Employees Retirement System purchased a new position in OFG Bancorp in the 1st quarter worth approximately $777,000. Apella Capital LLC bought a new stake in OFG Bancorp in the 1st quarter worth approximately $245,000. Diversified Trust Co bought a new stake in OFG Bancorp in the 1st quarter worth approximately $217,000. Invesco Ltd. boosted its stake in OFG Bancorp by 3.1% during the fourth quarter. Invesco Ltd. now owns 243,356 shares of the bank's stock worth $9,973,000 after buying an additional 7,337 shares during the period. Finally, XTX Topco Ltd boosted its stake in OFG Bancorp by 274.4% during the fourth quarter. XTX Topco Ltd now owns 20,787 shares of the bank's stock worth $852,000 after buying an additional 15,235 shares during the period. 92.73% of the stock is currently owned by institutional investors.

OFG Bancorp Price Performance

OFG opened at $42.50 on Tuesday. OFG Bancorp has a 52-week low of $34.94 and a 52-week high of $46.11. The stock has a market capitalization of $1.81 billion, a P/E ratio of 9.28 and a beta of 0.67. The company has a debt-to-equity ratio of 0.33, a quick ratio of 0.87 and a current ratio of 0.87. The company's 50-day simple moving average is $40.97 and its two-hundred day simple moving average is $40.86.

OFG Bancorp (NYSE:OFG - Get Free Report) last issued its quarterly earnings data on Thursday, January 22nd. The bank reported $1.27 earnings per share for the quarter, topping the consensus estimate of $1.16 by $0.11. OFG Bancorp had a net margin of 22.72% and a return on equity of 15.21%. The firm had revenue of $185.37 million for the quarter, compared to analysts' expectations of $184.17 million. During the same quarter in the prior year, the business earned $1.09 EPS. The business's quarterly revenue was up 1.9% on a year-over-year basis. As a group, analysts predict that OFG Bancorp will post 4.5 EPS for the current year.

OFG Bancorp Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, April 15th. Investors of record on Tuesday, March 31st were paid a dividend of $0.35 per share. This is a boost from OFG Bancorp's previous quarterly dividend of $0.30. The ex-dividend date was Tuesday, March 31st. This represents a $1.40 dividend on an annualized basis and a dividend yield of 3.3%. OFG Bancorp's dividend payout ratio is presently 30.57%.

OFG Bancorp declared that its Board of Directors has initiated a share buyback plan on Wednesday, January 28th that authorizes the company to buyback $200.00 million in shares. This buyback authorization authorizes the bank to purchase up to 12% of its stock through open market purchases. Stock buyback plans are often an indication that the company's management believes its stock is undervalued.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.