OFG Bancorp Approves Stock Repurchase Program

OFG Bancorp (NYSE:OFG - Get Free Report) has announced that its board of directors has approved a stock repurchase program on Monday, October 28th, as reported by RTT News. The company is set to repurchase $50 million of its outstanding shares. This buyback plan permits the bank to acquire up to 2.6% of its stock through open market purchases. Such stock repurchase plans often suggest that the company's leadership believes its shares are undervalued.

Recent Trading Activity

On the trading day following the announcement, NYSE OFG saw an increase of 4.3%, with shares trading up by $1.66 to reach $40.63. The trading volume for the day was 403,912 shares, significantly higher than the average volume of 234,646 shares. OFG Bancorp's stock has a fifty-day moving average of $43.37 and a 200-day moving average at $40.30. Over the past year, the stock has seen a low of $29.33 and a high of $47.57, with the company's market capitalization standing at $1.89 billion. Its price-to-earnings (P/E) ratio is 9.89, and it has a beta of 0.98. The company showcases a quick ratio of 0.86, a current ratio of 0.86, and a debt-to-equity ratio of 0.21.

Recently, OFG Bancorp released its earnings report for the quarter ending October 16th. The bank reported earnings of $1.00 per share, slightly below the expected consensus estimate of $1.02. The net profit margin was noted at 22.68%, and the return on equity was 15.69%. Revenue for the quarter amounted to $174.10 million, which was below the consensus estimate of $178.25 million but showed a 1.1% increase compared to the same quarter the previous year. Analysts predict that the company will earn approximately 4.11 per share for the ongoing fiscal year.

Dividend Announcement

The company also recently announced a quarterly dividend payout. Shareholders registered as of Tuesday, December 31st, will receive a dividend of $0.25 per share, to be paid on Wednesday, January 15th. This translates to an annualized dividend of $1.00, yielding approximately 2.46% for investors. The dividend payout ratio stands at 24.33%.

Expert Opinions on OFG Bancorp

Market analysts have weighed in positively on OFG Bancorp's shares. On July 22nd, Wells Fargo & Company raised their price target for OFG Bancorp from $40.00 to $48.00, assigning an "overweight" rating. Similarly, Hovde Group increased its target from $44.00 to $51.00, also issuing an "outperform" rating. Nonetheless, Piper Sandler slightly revised their target down from $49.00 to $47.00 while maintaining an "overweight" rating on October 17th.

Understanding OFG Bancorp

OFG Bancorp is a financial holding company that offers an array of banking and financial services. The services it provides are divided into three segments: Banking, Wealth Management, and Treasury. The offerings include checking and savings accounts, individual retirement accounts, certificates of deposit, and time deposit products. It also provides commercial and consumer loans, auto leasing, mortgage lending, credit cards, cash management, along with financial planning and investment services.

Should You Consider Investing?

Given the recent developments, potential investors may question if now is the right time to invest $1,000 in OFG Bancorp. Despite receiving a "Buy" rating, top analysts suggest there might be better opportunities available, highlighting stocks that are gaining attention in the market.

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