Popular (NASDAQ:BPOP) Shares Gap Down on Disappointing Earnings

Popular, Inc. (NASDAQ:BPOP) gapped down prior to trading on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $99.93, but opened at $96.10. Popular shares last traded at $95.54, with a volume of 66,455 shares traded.

The bank reported $2.16 earnings per share for the quarter, missing the consensus estimate of $2.38 by ($0.22). The firm had revenue of $736.56 million during the quarter, compared to analyst estimates of $766.62 million. Popular had a net margin of 12.20% and a return on equity of 11.73%. The business’s revenue for the quarter was up 6.2% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.90 earnings per share.

Popular Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, October 1st. Investors of record on Friday, September 13th were issued a $0.62 dividend. The ex-dividend date was Friday, September 13th. This represents a $2.48 annualized dividend and a yield of 2.79%. Popular’s dividend payout ratio (DPR) is currently 36.80%.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on BPOP. Hovde Group boosted their target price on Popular from $113.00 to $123.00 and gave the company an “outperform” rating in a research report on Thursday, July 25th. Wells Fargo & Company decreased their target price on Popular from $105.00 to $98.00 and set an “equal weight” rating on the stock in a research note on Thursday. Piper Sandler dropped their target price on Popular from $112.00 to $100.00 and set an “overweight” rating for the company in a research report on Thursday. Royal Bank of Canada cut their target price on shares of Popular from $108.00 to $96.00 and set an “outperform” rating on the stock in a research note on Thursday. Finally, Barclays dropped their price target on shares of Popular from $117.00 to $104.00 and set an “overweight” rating for the company in a research note on Thursday. Three analysts have rated the stock with a hold rating and six have assigned a buy rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $104.88.

Insider Transactions at Popular

In other news, EVP Camille Burckhart sold 5,917 shares of the business’s stock in a transaction that occurred on Tuesday, August 20th. The shares were sold at an average price of $97.60, for a total transaction of $577,499.20. Following the completion of the sale, the executive vice president now owns 29,922 shares in the company, valued at approximately $2,920,387.20. The trade was a 0.00 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Corporate insiders own 2.09% of the company’s stock.

Institutional Investors Weigh In On Popular

Several large investors have recently modified their holdings of BPOP. Financial Management Professionals Inc. purchased a new stake in Popular in the 3rd quarter valued at $29,000. Wealth Enhancement Advisory Services LLC increased its stake in Popular by 28.9% in the third quarter. Wealth Enhancement Advisory Services LLC now owns 4,918 shares of the bank’s stock valued at $493,000 after purchasing an additional 1,103 shares during the period. Assenagon Asset Management S.A. raised its holdings in shares of Popular by 171.3% in the third quarter. Assenagon Asset Management S.A. now owns 78,441 shares of the bank’s stock valued at $7,865,000 after buying an additional 49,533 shares during the last quarter. International Assets Investment Management LLC acquired a new stake in shares of Popular during the third quarter worth about $1,468,000. Finally, Sequoia Financial Advisors LLC grew its holdings in shares of Popular by 8.4% during the third quarter. Sequoia Financial Advisors LLC now owns 5,298 shares of the bank’s stock worth $534,000 after buying an additional 410 shares during the last quarter. 87.27% of the stock is owned by institutional investors and hedge funds.

Popular Stock Performance

The company has a 50-day moving average of $98.54 and a 200-day moving average of $93.04. The stock has a market cap of $6.43 billion, a price-to-earnings ratio of 13.20, a PEG ratio of 0.66 and a beta of 0.78.

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.