OFG Bancorp Announces Stock Repurchase Program

OFG Bancorp (NYSE:OFG) recently revealed that its board of directors has approved a stock repurchase program as of October 28th. The company is set to buy back $50 million worth of its outstanding shares. This buyback initiative gives the bank the authority to repurchase up to 2.6% of its total shares through transactions in the open market. Such repurchase programs typically suggest that the company’s management believes the shares are trading below their actual value.

OFG Bancorp Stock Performance

On the day of the announcement, OFG Bancorp's stock saw a positive movement, rising by 4.3% to reach $40.63. During the trading session, 403,912 shares changed hands, significantly higher than the average volume of 234,646 shares. The stock's fifty-day moving average is $43.37, while the 200-day moving average stands at $40.30. Over the past year, the stock has experienced a low of $29.33 and a high of $47.57. Currently, OFG Bancorp holds a market capitalization of $1.89 billion and maintains a P/E ratio of 9.89 along with a beta of 0.98. Its quick and current ratios both stand at 0.86, and the debt-to-equity ratio is at 0.21.

Recent Earnings Results

OFG Bancorp recently published its financial results on October 16th, indicating that it reported earnings of $1.00 per share for the quarter, which fell short of analysts' expectations of $1.02 by $0.02. The bank recorded a net margin of 22.68% along with a return on equity of 15.69%. Its revenues amounted to $174.10 million during the quarter, while the market had estimated $178.25 million. In the same period last year, the bank reported an EPS of $0.95, reflecting a year-over-year revenue increase of 1.1%. Analysts are forecasting an EPS of 4.11 for the current fiscal year.

Dividend Announcement

Additionally, OFG Bancorp announced a quarterly dividend that will be distributed on January 15th for shareholders recorded as of December 31st. The dividend is set at $0.25 per share, translating to an annualized dividend of $1.00, which yields about 2.46%. The company's dividend payout ratio is at 24.33%.

Analysts' Perspectives

Several financial analysts have provided insights on OFG Bancorp's shares. For instance, Wells Fargo & Company raised their price target from $40.00 to $48.00 and assigned an "overweight" rating on July 22nd. Hovde Group also increased their price target from $44.00 to $51.00 while giving a similar "outperform" rating. However, Piper Sandler has adjusted their target down from $49.00 to $47.00 and maintained an "overweight" rating.

About OFG Bancorp

OFG Bancorp is recognized as a financial holding company that offers a variety of banking and financial services. It operates through three main segments: Banking, Wealth Management, and Treasury. The services provided include various accounts such as checking and savings, certificate of deposits, consumer lending including auto and mortgage services, cash management, financial planning, credit card services, and trust and retirement services.

OFG, Stock, Repurchase