Stock Repurchase Plan Authorized by OFG Bancorp (NYSE:OFG) Board

OFG Bancorp (NYSE:OFG) declared that its board has initiated a share repurchase program on Wednesday, January 28th, RTT News reports. The company plans to repurchase $200.00 million in shares. This repurchase authorization permits the bank to reacquire up to 12% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company’s management believes its shares are undervalued.

Wall Street Analyst Weigh In

A number of analysts have recently commented on the stock. Keefe, Bruyette & Woods restated a “market perform” rating and set a $43.00 target price (down previously from $50.00) on shares of OFG Bancorp in a report on Friday, January 23rd. Wells Fargo & Company dropped their price objective on shares of OFG Bancorp from $48.00 to $43.00 and set an “equal weight” rating on the stock in a research note on Monday, October 27th. Piper Sandler began coverage on shares of OFG Bancorp in a report on Thursday, January 15th. They issued a “neutral” rating and a $45.00 price objective on the stock. Zacks Research upgraded shares of OFG Bancorp from a “strong sell” rating to a “hold” rating in a report on Wednesday, January 14th. Finally, Weiss Ratings restated a “buy (b-)” rating on shares of OFG Bancorp in a research note on Monday, December 29th. Three analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $45.83.

OFG Bancorp Price Performance

Shares of OFG opened at $39.74 on Friday. The company has a market capitalization of $1.75 billion, a P/E ratio of 8.68 and a beta of 0.77. The company has a quick ratio of 0.85, a current ratio of 0.87 and a debt-to-equity ratio of 0.33. The firm has a 50 day moving average of $40.88 and a 200 day moving average of $42.00. OFG Bancorp has a twelve month low of $33.15 and a twelve month high of $46.11.

OFG Bancorp (NYSE:OFG) last released its quarterly earnings data on Thursday, January 22nd. The bank reported $1.27 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.16 by $0.11. The business had revenue of $185.37 million for the quarter, compared to analysts’ expectations of $184.17 million. OFG Bancorp had a return on equity of 15.21% and a net margin of 22.72%.The firm’s quarterly revenue was up 1.9% on a year-over-year basis. During the same period in the prior year, the firm posted $1.09 EPS. As a group, equities research analysts anticipate that OFG Bancorp will post 4.18 earnings per share for the current fiscal year.

OFG Bancorp Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 15th. Investors of record on Tuesday, March 31st will be given a dividend of $0.35 per share. This represents a $1.40 annualized dividend and a dividend yield of 3.5%. This is a boost from OFG Bancorp’s previous quarterly dividend of $0.30. The ex-dividend date of this dividend is Tuesday, March 31st. OFG Bancorp’s payout ratio is 26.20%.

Key Headlines Impacting OFG Bancorp

Here are the key news stories impacting OFG Bancorp this week:

• Positive Sentiment: Board approved a new $200 million share repurchase program (authorizes repurchasing up to ~12% of outstanding shares), which supports earnings per share and signals management thinks the stock is undervalued. OFG Bancorp Announces New $200 Million Share Repurchase Plan
• Positive Sentiment: Quarterly dividend raised to $0.35 (16.7% increase vs prior $0.30), implying a ~3.5% yield and showing confidence in cash flow and capital levels; ex-dividend date set for March 31. OFG Bancorp Increases Regular Quarterly Common Stock Cash Dividend to $0.35
• Positive Sentiment: Recent Q4 results beat estimates (EPS $1.27 vs. $1.16 expected; revenue roughly in line), with improving net margin and ROE—fundamentals that support the dividend raise and buyback. 5 insightful analyst questions from OFG Bancorp’s Q4 earnings call
• Neutral Sentiment: Coverage pieces and analyst Q&A are circulating that explain the rally and dig into capital allocation and margin drivers; these help inform investor view but are not new corporate actions. OFG Bancorp (OFG) stock trades up, here is why
• Neutral Sentiment: Valuation-focused pieces (e.g., Zacks) are questioning whether OFG is still undervalued; useful for longer-term investors but less likely to drive intraday moves. Is OFG Bancorp (OFG) Stock Undervalued Right Now?
• Negative Sentiment: Truist lowered its price target to $44, which could cap upside in the near term and signals some analyst caution despite buybacks/dividend. Truist Financial Lowers OFG Bancorp (NYSE:OFG) Price Target to $44.00

Insiders Place Their Bets

In other OFG Bancorp news, Director Jesus Nestor De sold 2,000 shares of the company’s stock in a transaction dated Monday, December 22nd. The shares were sold at an average price of $42.31, for a total transaction of $84,620.00. Following the transaction, the director owned 22,690 shares in the company, valued at approximately $960,013.90. This represents a 8.10% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Jose Rafael Fernandez sold 25,232 shares of the business’s stock in a transaction that occurred on Wednesday, November 12th. The shares were sold at an average price of $40.95, for a total transaction of $1,033,250.40. Following the transaction, the chief executive officer directly owned 184,675 shares of the company’s stock, valued at $7,562,441.25. The trade was a 12.02% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 62,500 shares of company stock valued at $2,564,302 over the last quarter. Corporate insiders own 3.11% of the company’s stock.

OFG Bancorp Company Profile

OFG Bancorp, through its principal subsidiary Oriental Bank, is a financial holding company headquartered in San Juan, Puerto Rico. The company provides a wide range of banking services, including commercial and consumer deposit accounts, small business loans, corporate lending, treasury management, and cash management solutions. Its consumer offerings encompass personal checking and savings accounts, credit cards, and electronic banking platforms designed to serve retail customers across its markets.

In addition to traditional banking products, OFG Bancorp offers mortgage origination and servicing, as well as wealth management and trust services for high‐net‐worth individuals and institutional clients.