OFG Bancorp (NYSE:OFG) Authorizes Stock Repurchase Program

OFG Bancorp (NYSE:OFG) declared that its Board of Directors has approved a share repurchase program on Wednesday, January 28th, RTT News reports. The company plans to buyback $200.00 million in outstanding shares. This buyback authorization allows the bank to reacquire up to 12% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s board believes its shares are undervalued.

Analyst Ratings Changes

A number of analysts recently weighed in on OFG shares. Weiss Ratings restated a “buy (b-)” rating on shares of OFG Bancorp in a report on Monday, December 29th. Keefe, Bruyette & Woods reiterated a “market perform” rating and issued a $43.00 price target (down previously from $50.00) on shares of OFG Bancorp in a research report on Friday, January 23rd. Zacks Research upgraded OFG Bancorp from a “strong sell” rating to a “hold” rating in a research report on Wednesday, January 14th. Wells Fargo & Company reduced their target price on OFG Bancorp from $48.00 to $43.00 and set an “equal weight” rating on the stock in a report on Monday, October 27th. Finally, UBS Group set a $50.00 target price on shares of OFG Bancorp in a research report on Thursday, October 9th. Three investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, OFG Bancorp currently has a consensus rating of “Hold” and an average price target of $45.83.

OFG Bancorp Stock Up 1.6%

OFG Bancorp stock opened at $40.37 on Friday. The company has a market capitalization of $1.77 billion, a PE ratio of 8.81 and a beta of 0.77. OFG Bancorp has a 12-month low of $33.15 and a 12-month high of $46.11. The firm’s fifty day moving average is $40.89 and its 200 day moving average is $41.96. The company has a quick ratio of 0.85, a current ratio of 0.87 and a debt-to-equity ratio of 0.33.

OFG Bancorp (NYSE:OFG) last announced its quarterly earnings data on Thursday, January 22nd. The bank reported $1.27 earnings per share for the quarter, beating the consensus estimate of $1.16 by $0.11. The firm had revenue of $185.37 million for the quarter, compared to analyst estimates of $184.17 million. OFG Bancorp had a net margin of 22.72% and a return on equity of 15.21%. The business’s quarterly revenue was up 1.9% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.09 earnings per share. As a group, sell-side analysts predict that OFG Bancorp will post 4.18 EPS for the current fiscal year.

OFG Bancorp Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 15th. Shareholders of record on Tuesday, March 31st will be issued a $0.35 dividend. The ex-dividend date is Tuesday, March 31st. This is an increase from OFG Bancorp’s previous quarterly dividend of $0.30. This represents a $1.40 annualized dividend and a yield of 3.5%. OFG Bancorp’s dividend payout ratio is currently 26.20%.

Insider Transactions at OFG Bancorp

In other news, insider Cesar A. Ortiz sold 5,500 shares of the company’s stock in a transaction that occurred on Monday, December 15th. The stock was sold at an average price of $42.17, for a total transaction of $231,935.00. Following the transaction, the insider directly owned 351 shares of the company’s stock, valued at $14,801.67. This represents a 94.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Jesus Nestor De sold 2,000 shares of OFG Bancorp stock in a transaction on Monday, December 22nd. The shares were sold at an average price of $42.31, for a total transaction of $84,620.00. Following the completion of the sale, the director directly owned 22,690 shares of the company’s stock, valued at approximately $960,013.90. The trade was a 8.10% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 62,500 shares of company stock worth $2,564,302. 3.11% of the stock is currently owned by insiders.

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.