OFG Bancorp (NYSE:OFG) Stock Price Crosses Above 200-Day Moving Average - What's Next?

Key Points

• OFG shares crossed above their 200-day moving average (200-day MA $41.09) and traded as high as $46.25, last at $45.94 on volume of 165,029 shares.
• The bank reported a quarterly earnings beat (EPS $1.26 vs. $1.02 expected; revenue $185.8M vs. $179.2M) while analysts remain mixed with a consensus rating of "Hold" and a $47.20 consensus target.
• Management announced capital returns including a quarterly dividend of $0.35 (annualized $1.40, ~3.0% yield) and a $200M share buyback authorization (up to ~12% of shares outstanding).

OFG Bancorp (NYSE:OFG - Get Free Report) shares passed above its two hundred day moving average during trading on Wednesday . The stock has a two hundred day moving average of $41.09 and traded as high as $46.25. OFG Bancorp shares last traded at $45.94, with a volume of 165,029 shares changing hands.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on OFG shares. Piper Sandler reiterated a "neutral" rating and set a $48.00 target price (up from $43.00) on shares of OFG Bancorp in a research report on Wednesday, April 22nd. Zacks Research upgraded OFG Bancorp from a "strong sell" rating to a "hold" rating in a research note on Wednesday, January 14th. Wells Fargo & Company upped their price objective on OFG Bancorp from $43.00 to $45.00 and gave the stock an "equal weight" rating in a report on Wednesday, April 22nd. Truist Financial increased their price objective on OFG Bancorp from $44.00 to $50.00 and gave the stock a "buy" rating in a research report on Wednesday, April 22nd. Finally, Keefe, Bruyette & Woods reissued a "market perform" rating and issued a $43.00 target price (down from $50.00) on shares of OFG Bancorp in a report on Friday, January 23rd. Two investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $47.20.

OFG Bancorp Stock Performance

The company has a current ratio of 0.86, a quick ratio of 0.87 and a debt-to-equity ratio of 0.33. The stock's 50 day moving average price is $41.68 and its two-hundred day moving average price is $41.09. The firm has a market capitalization of $1.95 billion, a PE ratio of 9.49 and a beta of 0.72.

OFG Bancorp (NYSE:OFG - Get Free Report) last released its quarterly earnings results on Tuesday, April 21st. The bank reported $1.26 earnings per share for the quarter, topping analysts' consensus estimates of $1.02 by $0.24. The company had revenue of $185.80 million during the quarter, compared to analysts' expectations of $179.16 million. OFG Bancorp had a return on equity of 15.62% and a net margin of 23.45%.The business's revenue for the quarter was up 4.2% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.00 earnings per share. On average, equities analysts expect that OFG Bancorp will post 4.68 earnings per share for the current year.

OFG Bancorp Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, July 15th. Shareholders of record on Tuesday, June 30th will be issued a $0.35 dividend. This represents a $1.40 dividend on an annualized basis and a yield of 3.0%. The ex-dividend date is Tuesday, June 30th. OFG Bancorp's dividend payout ratio is 28.93%.

OFG Bancorp declared that its Board of Directors has initiated a stock repurchase plan on Wednesday, January 28th that permits the company to buyback $200.00 million in outstanding shares. This buyback authorization permits the bank to reacquire up to 12% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's board believes its stock is undervalued.

Insider Buying and Selling

In other news, Director Annette Franqui bought 1,540 shares of the stock in a transaction on Friday, February 20th. The stock was purchased at an average cost of $42.06 per share, with a total value of $64,772.40. Following the purchase, the director owned 3,440 shares of the company's stock, valued at approximately $144,686.40. The trade was a 81.05% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available at this link. Insiders own 1.23% of the company's stock.

Institutional Investors Weigh In On OFG Bancorp

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Royal Bank of Canada lifted its position in OFG Bancorp by 8.8% during the first quarter. Royal Bank of Canada now owns 30,489 shares of the bank's stock worth $1,221,000 after buying an additional 2,456 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in OFG Bancorp by 2.1% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 26,719 shares of the bank's stock valued at $1,069,000 after buying an additional 552 shares during the period. Quantbot Technologies LP purchased a new stake in OFG Bancorp in the 2nd quarter valued at about $162,000. Arrowstreet Capital Limited Partnership increased its stake in shares of OFG Bancorp by 63.7% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 81,787 shares of the bank's stock valued at $3,500,000 after acquiring an additional 31,816 shares during the last quarter. Finally, EverSource Wealth Advisors LLC lifted its holdings in shares of OFG Bancorp by 250.0% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,533 shares of the bank's stock worth $66,000 after acquiring an additional 1,095 shares during the period. Hedge funds and other institutional investors own 92.73% of the company's stock.

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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