OFG Bancorp (NYSE:OFG) Stock Sees Unusually High Call Option Buying

OFG Bancorp (NYSE:OFG) was the target of some unusual options trading activity on Tuesday. Traders purchased 6,791 call options on the stock. This represents an increase of 8,389% compared to the average daily volume of 80 call options.

OFG Bancorp Trading Up 0.6%

OFG stock traded up $0.32 during trading on Tuesday, reaching $51.19. 87,251 shares of the stock were exchanged, compared to its average volume of 319,682. OFG Bancorp has a 1 year low of $35.71 and a 1 year high of $54.47. The company has a current ratio of 0.86, a quick ratio of 0.88 and a debt-to-equity ratio of 0.30. The firm has a market capitalization of $2.16 billion, a price-to-earnings ratio of 9.75 and a beta of 0.73. The business has a 50 day moving average price of $51.69 and a 200-day moving average price of $46.78.

OFG Bancorp (NYSE:OFG) last announced its quarterly earnings data on Wednesday, October 21st. The bank reported $1.33 EPS for the quarter, beating analysts’ consensus estimates of $1.23 by $0.10. The company had revenue of $186.21 million for the quarter, compared to the consensus estimate of $187.11 million. OFG Bancorp had a net margin of 24.64% and a return on equity of 16.38%. On average, research analysts predict that OFG Bancorp will post 5.32 earnings per share for the current year.

OFG Bancorp Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, January 15th. Shareholders of record on Thursday, December 31st will be issued a $0.40 dividend. This is a positive change from OFG Bancorp’s previous quarterly dividend of $0.35. The ex-dividend date is Thursday, December 31st. This represents a $1.60 dividend on an annualized basis and a yield of 3.1%. OFG Bancorp’s payout ratio is currently 26.67%.

Wall Street Analyst Weigh In

Several research firms have commented on OFG. Piper Sandler set a $56.00 price objective on shares of OFG Bancorp in a report on Wednesday, July 22nd. Zacks Research lowered OFG Bancorp from a “strong-buy” rating to a “hold” rating in a research note on Monday, September 21st. Weiss Ratings raised shares of OFG Bancorp from a “buy (b)” rating to a “buy (b+)” rating in a research note on Thursday, October 22nd. Wells Fargo & Company boosted their target price on shares of OFG Bancorp from $49.00 to $55.00 and gave the company an “equal weight” rating in a research note on Monday, August 10th. Finally, Keefe, Bruyette & Woods raised their price target on shares of OFG Bancorp from $52.00 to $57.00 and gave the stock a “market perform” rating in a research note on Wednesday, July 22nd. Two equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat.com, OFG Bancorp has a consensus rating of “Hold” and an average price target of $56.50.

Insider Activity at OFG Bancorp

In related news, CFO Maritza Arizmendi sold 10,000 shares of the company’s stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $53.35, for a total value of $533,500.00. Following the sale, the chief financial officer owned 56,684 shares in the company, valued at $3,024,091.40. This represents a 15.00% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Néstor de Jesús sold 4,000 shares of the company’s stock in a transaction that occurred on Wednesday, August 12th. The stock was sold at an average price of $53.00, for a total transaction of $212,000.00. Following the completion of the transaction, the director owned 20,040 shares in the company, valued at approximately $1,062,120. This represents a 16.64% decrease in their position. The disclosure for this sale is available in the SEC filing. 1.23% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On OFG Bancorp

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Allworth Financial LP bought a new stake in OFG Bancorp in the 2nd quarter worth about $31,000. Nykredit A S purchased a new position in OFG Bancorp in the second quarter worth $43,000. USA Financial Formulas purchased a new stake in OFG Bancorp during the third quarter worth about $47,000. Integrated Wealth Concepts LLC purchased a new stake in OFG Bancorp in the second quarter worth $57,000. Finally, Royal Bank of Canada boosted its holdings in OFG Bancorp by 80.2% in the 1st quarter. Royal Bank of Canada now owns 3,901 shares of the bank’s stock worth $158,000 after buying an additional 1,736 shares during the period. 92.73% of the stock is currently owned by hedge funds and other institutional investors.

OFG Bancorp Company Profile

OFG Bancorp is a financial holding company headquartered in San Juan, Puerto Rico. Through its principal subsidiary, Oriental Bank, the company provides banking and financial services to individuals, businesses and institutions in Puerto Rico and the U.S. Virgin Islands.

Oriental Bank offers deposit accounts, consumer and commercial loans, residential mortgage lending, auto financing, credit cards and other retail banking products. The company also provides wealth management, trust, investment and insurance-related services through its affiliated businesses.

Founded in 1964, OFG Bancorp has expanded its presence in Puerto Rico through organic growth and acquisitions, including the purchase of Scotiabank’s Puerto Rico operations in 2019.