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

Popular, Inc. (NASDAQ:BPOP) gapped down prior to trading on Wednesday following a dissappointing 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 changing hands.

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 for the quarter, compared to the consensus estimate of $766.62 million. Popular had a return on equity of 11.73% and a net margin of 12.20%. The business’s revenue for the quarter was up 6.2% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.90 earnings per share.

Popular Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, October 1st. Investors of record on Friday, September 13th were given a $0.62 dividend. The ex-dividend date was Friday, September 13th. This represents a $2.48 dividend on an annualized basis and a dividend yield of 2.79%. Popular’s dividend payout ratio is 36.80%.

Wall Street Analysts Forecast Growth

BPOP has been the subject of several research reports. Hovde Group increased their price objective on shares of Popular from $113.00 to $123.00 and gave the stock an “outperform” rating in a research report on Thursday, July 25th. Barclays cut their price objective on Popular from $117.00 to $104.00 and set an “overweight” rating for the company in a research report on Thursday. Keefe, Bruyette & Woods reiterated an “outperform” rating and set a $120.00 target price (up previously from $110.00) on shares of Popular in a research note on Thursday, July 25th. Wells Fargo & Company dropped their price target on shares of Popular from $105.00 to $98.00 and set an “equal weight” rating for the company in a research report on Thursday. Finally, Royal Bank of Canada reduced their price objective on shares of Popular from $108.00 to $96.00 and set an “outperform” rating on the stock in a research note on Thursday. Three research analysts have rated the stock with a hold rating and six have assigned a buy rating to the company. Based on data from MarketBeat.com, Popular has an average rating of “Moderate Buy” and a consensus target price of $104.88.

Insider Activity

In related news, EVP Camille Burckhart sold 5,917 shares of the firm’s stock in a transaction on Tuesday, August 20th. The stock was sold at an average price of $97.60, for a total transaction of $577,499.20. Following the completion of the transaction, the executive vice president now directly owns 29,922 shares of the company’s stock, valued at $2,920,387.20. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 2.09% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. American Century Companies Inc. raised its holdings in shares of Popular by 10.3% in the 2nd quarter. American Century Companies Inc. now owns 1,218,828 shares of the bank’s stock worth $107,781,000 after acquiring an additional 113,838 shares during the last quarter. AQR Capital Management LLC boosted its holdings in Popular by 23.6% during the 2nd quarter. AQR Capital Management LLC now owns 859,794 shares of the bank’s stock worth $75,129,000 after acquiring an additional 164,270 shares during the last quarter. Massachusetts Financial Services Co. MA grew its stake in shares of Popular by 52.2% in the 2nd quarter. Massachusetts Financial Services Co. MA now owns 835,311 shares of the bank’s stock worth $73,867,000 after acquiring an additional 286,450 shares in the last quarter. Earnest Partners LLC raised its holdings in shares of Popular by 2.1% in the first quarter. Earnest Partners LLC now owns 713,923 shares of the bank’s stock valued at $62,889,000 after purchasing an additional 14,810 shares during the last quarter. Finally, LSV Asset Management lifted its position in shares of Popular by 1.4% during the first quarter. LSV Asset Management now owns 708,385 shares of the bank’s stock valued at $62,402,000 after purchasing an additional 9,985 shares in the last quarter. 87.27% of the stock is owned by institutional investors.

Popular Price Performance

The firm’s fifty day moving average is $98.54 and its two-hundred day moving average is $93.04. The firm has a market capitalization of $6.43 billion, a PE 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.