Popular (NASDAQ:BPOP) Reaches New 1-Year High – Here’s Why

Shares of Popular, Inc. (NASDAQ:BPOP) reached a new 52-week high during trading on Thursday . The stock traded as high as $176.51 and last traded at $173.6750, with a volume of 6859 shares traded. The stock had previously closed at $172.22.

Popular News Roundup

Here are the key news stories impacting Popular this week:

• Positive Sentiment: Strong momentum and earnings performance support the stock. Zacks identifies BPOP as a top-ranked momentum stock, while Popular’s latest quarterly results included adjusted earnings of $4.35 per share—well above the $3.72 analyst consensus and up from $3.09 a year earlier. Popular is a Top-Ranked Momentum Stock
• Positive Sentiment: BPOP’s valuation remains potentially attractive relative to its growth. The stock’s reported price-to-earnings ratio is approximately 11.8, and its price-to-earnings-growth ratio is below 1, metrics that may appeal to investors seeking earnings growth at a reasonable price. Popular Soars to 52-Week High
• Neutral Sentiment: The 52-week high creates a near-term valuation and profit-taking consideration. Zacks questions whether investors should “cash out” after the recent rally, suggesting that expectations for further gains may already be reflected in the share price. Investors will likely focus on whether Popular can sustain earnings growth and improve revenue, which came in below estimates in the latest quarter.

Analyst Ratings Changes

Several research firms have weighed in on BPOP. Benchmark upped their price objective on shares of Popular from $201.00 to $214.00 and gave the company a “buy” rating in a research note on Friday, July 24th. Citigroup lifted their target price on shares of Popular from $178.00 to $188.00 and gave the company a “buy” rating in a research note on Thursday, June 25th. UBS Group boosted their price target on shares of Popular from $160.00 to $170.00 and gave the company a “buy” rating in a report on Friday, April 24th. Zacks Research downgraded shares of Popular from a “strong-buy” rating to a “hold” rating in a research note on Monday, April 6th. Finally, Keefe, Bruyette & Woods increased their price objective on Popular from $190.00 to $207.00 and gave the stock an “outperform” rating in a report on Friday, July 24th. One analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Buy” and a consensus price target of $184.42.

Popular Stock Performance

The firm has a market cap of $11.31 billion, a P/E ratio of 11.84, a PEG ratio of 0.67 and a beta of 0.61. The company has a 50 day moving average of $163.43 and a 200 day moving average of $147.61.

Popular (NASDAQ:BPOP) last released its quarterly earnings data on Thursday, July 23rd. The bank reported $4.35 EPS for the quarter, topping analysts’ consensus estimates of $3.72 by $0.63. The firm had revenue of $846.92 million for the quarter, compared to the consensus estimate of $878.41 million. Popular had a return on equity of 15.47% and a net margin of 21.37%.During the same quarter in the prior year, the company posted $3.09 earnings per share. As a group, analysts expect that Popular, Inc. will post 15.72 EPS for the current fiscal year.

Popular Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, July 1st. Shareholders of record on Friday, May 29th were given a $0.75 dividend. This represents a $3.00 annualized dividend and a yield of 1.7%. The ex-dividend date of this dividend was Friday, May 29th. Popular’s payout ratio is currently 20.27%.

Insider Buying and Selling at Popular

In other news, Director Maria Luisa Ferre sold 3,385 shares of the stock in a transaction on Thursday, July 30th. The shares were sold at an average price of $175.42, for a total transaction of $593,796.70. Following the transaction, the director owned 10,156 shares in the company, valued at $1,781,565.52. This represents a 25.00% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Alejandro M. Sanchez sold 300 shares of the firm’s stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $150.36, for a total transaction of $45,108.00. Following the transaction, the director owned 3,960 shares in the company, valued at $595,425.60. This represents a 7.04% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 6,761 shares of company stock worth $1,173,483. 2.13% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Popular

Several hedge funds have recently bought and sold shares of BPOP. Allspring Global Investments Holdings LLC lifted its position in shares of Popular by 112.1% in the fourth quarter. Allspring Global Investments Holdings LLC now owns 44,616 shares of the bank’s stock worth $5,620,000 after buying an additional 23,584 shares during the last quarter. Crossmark Global Holdings Inc. increased its holdings in shares of Popular by 10.1% during the 4th quarter. Crossmark Global Holdings Inc. now owns 187,671 shares of the bank’s stock valued at $23,369,000 after acquiring an additional 17,148 shares during the last quarter. UBS Group AG increased its holdings in shares of Popular by 28.1% during the 4th quarter. UBS Group AG now owns 540,646 shares of the bank’s stock valued at $67,321,000 after acquiring an additional 118,496 shares during the last quarter. Geode Capital Management LLC increased its holdings in shares of Popular by 4.8% during the 4th quarter. Geode Capital Management LLC now owns 1,405,575 shares of the bank’s stock valued at $175,057,000 after acquiring an additional 64,778 shares during the last quarter. Finally, Artemis Investment Management LLP bought a new position in shares of Popular in the 4th quarter valued at approximately $2,038,000. 87.27% of the stock is owned by institutional investors and hedge funds.

About Popular

Popular, Inc, headquartered in San Juan, Puerto Rico, is a financial holding company and a leading provider of banking services in the United States mainland and Puerto Rico. Through its primary subsidiaries—Banco Popular de Puerto Rico and Popular Bank—the company delivers comprehensive commercial and consumer banking solutions. It offers deposit products, lending facilities, cash management services and payment-processing solutions designed for individuals, small businesses and large corporations.

The company’s product suite encompasses checking and savings accounts, certificates of deposit, residential and commercial mortgage loans, business lines of credit and credit cards.