OFG Bancorp Approves Stock Repurchase Program

OFG Bancorp (NYSE:OFG) announced on Monday, October 28th, that its board of directors has approved a stock repurchase program. The company plans to repurchase up to $50 million worth of its outstanding shares. With this new repurchase authorization, the bank is allowed to buy back approximately 2.6% of its shares through open market transactions. Such stock buyback programs are often seen as a sign that the company's management believes its shares are undervalued.

OFG Bancorp Shares Surge 4.3%

During trading hours on Monday, OFG Bancorp's stock saw an increase of $1.66, reaching a price of $40.63. The trading volume for the day was 403,912 shares, significantly higher than the average volume of 234,646 shares. The stock's fifty-day moving average stands at $43.37, while the two-hundred-day moving average is at $40.30. Over the past year, OFG Bancorp has experienced a low of $29.33 and a high of $47.57. The company currently holds a market capitalization of $1.89 billion, with a price-to-earnings (P/E) ratio of 9.89 and a beta value of 0.98. Additionally, OFG Bancorp has a quick ratio of 0.86, a current ratio of 0.86, and a debt-to-equity ratio of 0.21.

OFG Bancorp reported its earnings results on October 16th, announcing earnings per share (EPS) of $1.00 for the quarter, which was slightly below the consensus estimate of $1.02. The bank achieved a net margin of 22.68% and a return on equity of 15.69%. The total revenue for the quarter was $174.10 million, compared to the expected figure of $178.25 million. This marks an increase of 1.1% in revenue compared to the same quarter from the previous year. Current forecasts suggest that OFG Bancorp will deliver an earnings per share of 4.11 for the ongoing fiscal year.

Dividends Declared by OFG Bancorp

The company has also recently announced a quarterly dividend, scheduled for payment on January 15th. Shareholders on record as of December 31st will receive a dividend of $0.25 per share, equating to an annualized dividend of $1.00 and a yield of 2.46%. OFG Bancorp's dividend payout ratio currently stands at 24.33%.

Insights from Wall Street Analysts

In recent analysis, several financial experts have taken a closer look at OFG shares. Wells Fargo & Company has raised its price target for OFG Bancorp, increasing it from $40.00 to $48.00 and issuing an "overweight" rating in a research note dated July 22nd. Another firm, Hovde Group, has also raised its price target, this time from $44.00 to $51.00 while designating an "outperform" rating. Conversely, Piper Sandler has adjusted its price target downward from $49.00 to $47.00, while maintaining an "overweight" rating, as noted in a report released on October 17th.

About OFG Bancorp

OFG Bancorp is a financial holding company that provides a variety of banking and financial services through its three main segments: Banking, Wealth Management, and Treasury. The services offered include checking and savings accounts, retirement accounts, certificates of deposit, commercial and consumer loans, auto leasing, mortgage lending, credit cards, cash management, financial planning, insurance services, and trust services.

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