Popular (NASDAQ:BPOP) Shares Gap Up After Better-Than-Expected Earnings

Popular, Inc. (NASDAQ:BPOP)’s share price gapped up prior to trading on Wednesday following a stronger than expected earnings report. 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 changing hands.

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 net margin of 12.36% and a return on equity of 11.35%.

Popular Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, January 2nd. Stockholders of record on Friday, December 6th were given a $0.70 dividend. The ex-dividend date of this dividend was Friday, December 6th. This represents a $2.80 dividend on an annualized basis and a dividend yield of 2.70%. This is an increase from Popular’s previous quarterly dividend of $0.62. Popular’s payout ratio is currently 38.04%.

Wall Street Analysts Forecast Growth

BPOP has been the topic of a number of research analyst reports. Piper Sandler decreased their price target on Popular from $112.00 to $100.00 and set an “overweight” rating on the stock in a research note on Thursday, October 24th. Royal Bank of Canada raised 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. Wells Fargo & Company upped their price target on shares of Popular from $90.00 to $105.00 and gave the stock an “equal weight” rating in a research report on Tuesday, December 3rd. StockNews.com upgraded shares of Popular from a “hold” rating to a “buy” rating in a report on Wednesday. Finally, UBS Group initiated coverage on shares of Popular in a research note on Tuesday, December 17th. They set a “neutral” rating and a $104.00 price objective for the company. Two investment analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $111.63.

Insider Activity at Popular

In related news, EVP Beatriz Castellvi sold 3,500 shares of the business’s stock in a transaction that occurred on Wednesday, November 6th. The stock was sold at an average price of $99.16, for a total transaction of $347,060.00. Following the transaction, the executive vice president now directly owns 25,115 shares of the company’s stock, valued at approximately $2,490,403.40. The trade was a 12.23 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, VP Adorno Denissa Rodriguez sold 1,825 shares of the company’s stock in a transaction that occurred on Wednesday, November 6th. The stock was sold at an average price of $97.71, for a total value of $178,320.75. Following the completion of the transaction, the vice president now owns 3,332 shares of the company’s stock, valued at approximately $325,569.72. This represents a 35.39 % decrease in their position. The disclosure for this sale can be found here. Company insiders own 2.09% of the company’s stock.

Institutional Investors Weigh In On Popular

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. State Street Corp grew its stake in shares of Popular by 0.5% during the third quarter. State Street Corp now owns 2,056,377 shares of the bank’s stock valued at $207,475,000 after acquiring an additional 10,599 shares in the last quarter. Principal Financial Group Inc. boosted its holdings in Popular by 7.3% in the third quarter. Principal Financial Group Inc. now owns 1,054,849 shares of the bank’s stock valued at $105,769,000 after purchasing an additional 71,782 shares during the last quarter. Massachusetts Financial Services Co. MA boosted its holdings in Popular by 8.1% in the third quarter. Massachusetts Financial Services Co. MA now owns 902,931 shares of the bank’s stock valued at $90,537,000 after purchasing an additional 67,620 shares during the last quarter. Verition Fund Management LLC grew its stake in Popular by 3.7% during the 3rd quarter. Verition Fund Management LLC now owns 629,537 shares of the bank’s stock valued at $63,124,000 after purchasing an additional 22,355 shares in the last quarter. Finally, Jacobs Levy Equity Management Inc. increased its holdings in Popular by 18.3% during the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 548,057 shares of the bank’s stock worth $54,954,000 after purchasing an additional 84,839 shares during the last quarter. Hedge funds and other institutional investors own 87.27% of the company’s stock.

Popular Trading Up 1.2 %

The company has a market capitalization of $7.40 billion, a price-to-earnings ratio of 14.09, a price-to-earnings-growth ratio of 0.65 and a beta of 0.81. The stock has a 50-day simple moving average of $97.03 and a 200-day simple moving average of $97.35.

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.