Popular (NASDAQ:BPOP) Reaches New 12-Month High - Should You Buy?

Key Points

• Shares of Popular (BPOP) hit a new 52-week high of $149.58, and analysts are largely bullish—11 Buy ratings vs. 1 Hold—giving a consensus rating of Moderate Buy with a consensus target of $161.18.
• Popular reported EPS of $3.38 for the quarter (vs. $3.02 est.), and the stock trades at a P/E of 12.09 and a PEG of 0.77, indicating a relatively attractive valuation versus growth expectations.
• The company pays a quarterly dividend of $0.75 (annualized yield ~2.0%, DPR 24.35%), institutional ownership is high at 87.27%, and there have been small recent insider stock sales.

Shares of Popular, Inc. (NASDAQ:BPOP - Get Free Report) hit a new 52-week high during mid-day trading on Monday . The company traded as high as $149.58 and last traded at $149.3960, with a volume of 56539 shares. The stock had previously closed at $146.90.

Analysts Set New Price Targets

Several equities research analysts have weighed in on the company. Royal Bank Of Canada raised their price target on Popular from $137.00 to $141.00 and gave the stock an "outperform" rating in a report on Wednesday, January 28th. Wells Fargo & Company upped their price target on shares of Popular from $135.00 to $163.00 and gave the company an "overweight" rating in a research note on Monday, March 30th. UBS Group upgraded shares of Popular from a "hold" rating to a "buy" rating and upped their price target for the company from $142.00 to $160.00 in a research note on Tuesday, April 7th. Credit Suisse Group set a $156.00 price target on shares of Popular in a research note on Tuesday, February 3rd. Finally, Citigroup increased their price target on shares of Popular from $161.00 to $170.00 and gave the stock a "buy" rating in a report on Tuesday, February 24th. Eleven research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $161.18.

Popular Stock Performance

The firm's 50 day moving average is $138.19 and its 200-day moving average is $127.53. The stock has a market capitalization of $9.67 billion, a price-to-earnings ratio of 12.09, a PEG ratio of 0.77 and a beta of 0.59.

Popular (NASDAQ:BPOP - Get Free Report) last announced its earnings results on Tuesday, January 27th. The bank reported $3.38 earnings per share for the quarter, topping the consensus estimate of $3.02 by $0.36. The business had revenue of $806.59 million during the quarter, compared to the consensus estimate of $811.55 million. Popular had a return on equity of 13.70% and a net margin of 18.75%.During the same period in the prior year, the company posted $2.51 EPS. As a group, sell-side analysts forecast that Popular, Inc. will post 10.06 earnings per share for the current year.

Popular Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Wednesday, April 1st. Stockholders of record on Wednesday, March 18th were given a $0.75 dividend. The ex-dividend date was Wednesday, March 18th. This represents a $3.00 annualized dividend and a dividend yield of 2.0%. Popular's dividend payout ratio (DPR) is 24.35%.

Insider Activity

In other Popular news, Director Alejandro M. Sanchez sold 1,451 shares of the stock in a transaction that occurred on Thursday, February 26th. The stock was sold at an average price of $140.85, for a total transaction of $204,373.35. Following the completion of the transaction, the director owned 3,415 shares of the company's stock, valued at $481,002.75. This represents a 29.82% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Alejandro M. Ballester sold 2,360 shares of Popular stock in a transaction on Friday, January 30th. The stock was sold at an average price of $132.50, for a total transaction of $312,700.00. Following the sale, the director directly owned 57,449 shares in the company, valued at approximately $7,611,992.50. This trade represents a 3.95% decrease in their position. The SEC filing for this sale provides additional information. 2.13% of the stock is owned by company insiders.

Institutional Investors Weigh In On Popular

Several hedge funds and other institutional investors have recently bought and sold shares of BPOP. Xponance LLC increased its position in shares of Popular by 2.1% during the 4th quarter. Xponance LLC now owns 3,892 shares of the bank's stock worth $485,000 after purchasing an additional 80 shares during the last quarter. Baron Wealth Management LLC lifted its holdings in shares of Popular by 2.5% in the 3rd quarter. Baron Wealth Management LLC now owns 3,597 shares of the bank's stock worth $457,000 after acquiring an additional 87 shares during the last quarter. KLP Kapitalforvaltning AS lifted its holdings in shares of Popular by 0.6% in the 3rd quarter. KLP Kapitalforvaltning AS now owns 17,000 shares of the bank's stock worth $2,171,000 after acquiring an additional 100 shares during the last quarter. Parallel Advisors LLC lifted its holdings in shares of Popular by 70.8% in the 4th quarter. Parallel Advisors LLC now owns 246 shares of the bank's stock worth $31,000 after acquiring an additional 102 shares during the last quarter. Finally, Cetera Investment Advisers lifted its holdings in shares of Popular by 0.8% in the 4th quarter. Cetera Investment Advisers now owns 14,647 shares of the bank's stock worth $1,824,000 after acquiring an additional 111 shares during the last quarter. 87.27% of the stock is currently owned by institutional investors and hedge funds.

About Popular

Popular, Inc, headquartered in San Juan, Puerto Rico, is a financial holding company and a leading provider of banking services in the United States mainland and Puerto Rico. Through its primary subsidiaries—Banco Popular de Puerto Rico and Popular Bank—the company delivers comprehensive commercial and consumer banking solutions. It offers deposit products, lending facilities, cash management services and payment-processing solutions designed for individuals, small businesses and large corporations.

The company's product suite encompasses checking and savings accounts, certificates of deposit, residential and commercial mortgage loans, business lines of credit and credit cards.

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