OFG Bancorp (NYSE:OFG) Shares Up 6.3% Following Strong Earnings

Key Points

• OFG Bancorp shares jumped 6.3% after reporting Q1 EPS of $1.26 vs. consensus $1.08 and revenue of $185.8M, a 4.2% year-over-year increase and a net margin of 22.72%.
• The board raised the quarterly dividend to $0.35 (annualized $1.40, ~3.1% yield) and approved a $200M share buyback program to repurchase up to about 12% of shares.
• Analysts' consensus remains a Hold with a $45.83 target, the company has a market cap of about $1.92B and a P/E of 9.9, while institutional investors own roughly 92.7% of the stock.

OFG Bancorp (NYSE:OFG - Get Free Report) shares shot up 6.3% on Tuesday after the company announced better than expected quarterly earnings. The company traded as high as $45.06 and last traded at $45.2430. 109,631 shares traded hands during trading, a decline of 67% from the average session volume of 336,725 shares. The stock had previously closed at $42.55.

The bank reported $1.26 EPS for the quarter, beating analysts' consensus estimates of $1.08 by $0.18. The firm had revenue of $185.80 million during the quarter, compared to analysts' expectations of $179.16 million. OFG Bancorp had a net margin of 22.72% and a return on equity of 15.21%. The company's revenue for the quarter was up 4.2% compared to the same quarter last year. During the same quarter last year, the company posted $1.00 earnings per share.

OFG Bancorp Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, April 15th. Shareholders of record on Tuesday, March 31st were paid a $0.35 dividend. This is a positive change from OFG Bancorp's previous quarterly dividend of $0.30. This represents a $1.40 annualized dividend and a yield of 3.1%. The ex-dividend date was Tuesday, March 31st. OFG Bancorp's dividend payout ratio is currently 30.57%.

OFG Bancorp declared that its board has approved a share buyback program 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 shares through open market purchases. Shares buyback programs are usually an indication that the company's board of directors believes its stock is undervalued.

Wall Street Analyst Weigh In

Several research analysts have issued reports on OFG shares. Keefe, Bruyette & Woods restated a "market perform" rating and set a $43.00 price target (down from $50.00) on shares of OFG Bancorp in a report on Friday, January 23rd. Truist Financial cut their target price on OFG Bancorp from $48.00 to $44.00 and set a "buy" rating on the stock in a report on Monday, January 26th. Zacks Research upgraded shares of OFG Bancorp from a "strong sell" rating to a "hold" rating in a report on Wednesday, January 14th. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of OFG Bancorp in a research note on Monday, December 29th. Finally, Piper Sandler began coverage on shares of OFG Bancorp in a report on Thursday, January 15th. They set a "neutral" rating and a $45.00 price objective for the company. Three equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to data from MarketBeat, OFG Bancorp currently has an average rating of "Hold" and a consensus target price of $45.83.

Insiders Place Their Bets

In other OFG Bancorp news, Director Annette Franqui acquired 1,540 shares of OFG Bancorp stock in a transaction on Friday, February 20th. The stock was purchased at an average price of $42.06 per share, for a total transaction of $64,772.40. Following the purchase, the director directly owned 3,440 shares of the company's stock, valued at $144,686.40. This trade represents a 81.05% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Corporate insiders own 1.23% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. First Trust Advisors LP boosted its stake in shares of OFG Bancorp by 8.8% during the 4th quarter. First Trust Advisors LP now owns 2,040,331 shares of the bank's stock valued at $83,613,000 after purchasing an additional 164,818 shares in the last quarter. Qube Research & Technologies Ltd lifted its holdings 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 purchasing an additional 133,046 shares during the last quarter. American Century Companies Inc. boosted its position in shares of OFG Bancorp by 8.1% in the 3rd quarter. American Century Companies Inc. now owns 1,458,026 shares of the bank's stock worth $63,410,000 after purchasing an additional 108,635 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC purchased a new stake in shares of OFG Bancorp in the 4th quarter worth approximately $4,224,000. Finally, Thrivent Financial for Lutherans bought a new position in OFG Bancorp during the 3rd quarter valued at approximately $4,272,000. 92.73% of the stock is currently owned by hedge funds and other institutional investors.

OFG Bancorp Stock Up 6.3%

The firm has a market capitalization of $1.92 billion, a P/E ratio of 9.88 and a beta of 0.67. The company has a fifty day simple moving average of $40.97 and a 200 day simple moving average of $40.86. The company has a quick ratio of 0.87, a current ratio of 0.87 and a debt-to-equity ratio of 0.33.

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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