Popular (NASDAQ:BPOP) Shares Gap Up After Strong Earnings

Popular, Inc. (NASDAQ:BPOP)’s stock price gapped up prior to trading on Wednesday following a better than expected earnings announcement. The stock had previously closed at $102.46, but opened at $105.70. Popular shares last traded at $104.23, with a volume of 37,097 shares traded.

The bank reported $2.51 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.04 by $0.47. Popular had a return on equity of 11.35% and a net margin of 12.36%.

Popular Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, January 2nd. Investors of record on Friday, December 6th were issued a $0.70 dividend. This represents a $2.80 dividend on an annualized basis and a dividend yield of 2.71%. The ex-dividend date was Friday, December 6th. This is a positive change from Popular’s previous quarterly dividend of $0.62. Popular’s dividend payout ratio is currently 38.04%.

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on BPOP shares. Wells Fargo & Company increased their price target on Popular from $105.00 to $110.00 and gave the company an “equal weight” rating in a research report on Thursday. Piper Sandler dropped their price target on shares of Popular from $112.00 to $100.00 and set an “overweight” rating on the stock in a research report on Thursday, October 24th. Barclays upped their price objective on shares of Popular from $110.00 to $115.00 and gave the stock an “overweight” rating in a research report on Friday, December 20th. Royal Bank of Canada lifted their target price on shares of Popular from $100.00 to $110.00 and gave the stock an “outperform” rating in a research report on Wednesday. Finally, UBS Group started coverage on Popular in a report on Tuesday, December 17th. They issued a “neutral” rating and a $104.00 target price for the company. Two equities research analysts have rated the stock with a hold rating and seven have issued a buy rating to the company’s stock. Based on data from MarketBeat, Popular currently has a consensus rating of “Moderate Buy” and a consensus target price of $112.25.

Insider Activity

In other Popular news, VP Adorno Denissa Rodriguez sold 1,825 shares of the stock in a transaction that occurred on Wednesday, November 6th. The shares were sold at an average price of $97.71, for a total transaction of $178,320.75. Following the transaction, the vice president now directly owns 3,332 shares in the company, valued at $325,569.72. This trade represents a 35.39 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Beatriz Castellvi sold 3,500 shares of the firm’s stock in a transaction dated Wednesday, November 6th. The shares were sold at an average price of $99.16, for a total value of $347,060.00. Following the transaction, the executive vice president now directly owns 25,115 shares in the company, valued at $2,490,403.40. This trade represents a 12.23 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 2.09% of the stock is owned by company insiders.

Institutional Investors Weigh In On Popular

Several institutional investors and hedge funds have recently bought and sold shares of the business. Secured Retirement Advisors LLC bought a new stake in Popular in the fourth quarter valued at $1,428,000. Rhumbline Advisers boosted its stake in shares of Popular by 0.3% during the 4th quarter. Rhumbline Advisers now owns 92,877 shares of the bank’s stock valued at $8,736,000 after purchasing an additional 281 shares in the last quarter. Van ECK Associates Corp raised its stake in Popular by 33.0% in the fourth quarter. Van ECK Associates Corp now owns 54,374 shares of the bank’s stock worth $5,114,000 after buying an additional 13,504 shares in the last quarter. Angeles Wealth Management LLC purchased a new stake in Popular in the fourth quarter worth about $206,000. Finally, Wilmington Savings Fund Society FSB boosted its position in Popular by 594.2% during the 4th quarter. Wilmington Savings Fund Society FSB now owns 5,595 shares of the bank’s stock valued at $526,000 after acquiring an additional 4,789 shares in the last quarter. Hedge funds and other institutional investors own 87.27% of the company’s stock.

Popular Trading Down 0.2 %

The stock has a market cap of $7.38 billion, a PE ratio of 14.06, a P/E/G ratio of 0.65 and a beta of 0.81. The business has a fifty day simple moving average of $97.17 and a two-hundred day simple moving average of $97.39.

About Popular

Popular, Inc, through its subsidiaries, provides various retail, mortgage, and commercial banking products and services in Puerto Rico, the United States, and the British Virgin Islands. The company provides savings, NOW, money market, and other interest-bearing demand accounts; non-interest bearing demand deposits; and certificates of deposit.