SAN JUAN, Puerto Rico—Roberto Herencia, a director at First BanCorp (NYSE:FBP), recently sold a significant portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Herencia sold 100,000 shares of First BanCorp common stock on November 6, 2024. The shares were sold at an average price of $22.18, totaling $2,218,120.
Following this transaction, Herencia holds 651,945 shares of the company, maintaining his status as a significant shareholder. The sale was conducted in multiple transactions, with prices ranging from $22.17 to $22.23 per share.
First BanCorp, based in San Juan, Puerto Rico, is a prominent player in the state commercial banking sector. The company continues to be a focal point for investors monitoring insider trading activities.
In other recent news, First BanCorp has been in the spotlight following recent financial developments. The company reported quarterly earnings that exceeded consensus estimates by $0.04, attributed to lower provisioning and taxes, partially offset by a decrease in net interest income (NII). Piper Sandler, in response to these results, adjusted its price target for First BanCorp from $22.00 to $21.00, while maintaining a neutral rating.
First BanCorp's net interest margin expanded slightly, though not as significantly as anticipated. Deposit balances saw a minor decrease, while loan balances experienced a modest increase. Despite some shortfalls, the company's core return on assets was reported at 1.58%, and its tangible book value rose notably due to a favorable adjustment in income.
In addition to these developments, First BanCorp reported a third-quarter net income of $73.7 million, or $0.45 per share. The company also repurchased $50 million of its junior subordinated debt, demonstrating robust capital ratios. These recent events highlight First BanCorp's ongoing financial performance and strategic management efforts.
Credit trends remained positive, with nonperforming loans and assets declining. However, net charge-offs increased slightly. Piper Sandler suggested that the stock's recent weakness may have been a reaction to these developments. Despite the challenges, First BanCorp continues to focus on its financial stability and growth, as evidenced by its digital initiatives and capital return policy.
InvestingPro Insights
In light of Roberto Herencia's recent stock sale, it's worth examining some key financial metrics and insights for First BanCorp (NYSE:FBP). According to InvestingPro data, the company's market capitalization stands at $3.45 billion, with a price-to-earnings ratio of 11.62, suggesting a relatively modest valuation compared to industry peers.
First BanCorp has demonstrated strong financial performance, with a notable operating income margin of 44.69% for the last twelve months as of Q3 2024. This robust profitability metric aligns with an InvestingPro Tip indicating that the company has been profitable over the last twelve months.
Investors may also be interested to know that First BanCorp has been rewarding shareholders, as highlighted by another InvestingPro Tip: the company has raised its dividend for 7 consecutive years. The current dividend yield stands at 3.06%, which could be attractive for income-focused investors.
It's worth noting that InvestingPro has identified 10 additional tips for First BanCorp, which could provide further insights for investors considering the stock in light of the insider sale. These additional tips, available through the InvestingPro product, may offer a more comprehensive view of the company's financial health and market position.
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