SAN JUAN, Puerto Rico—Aurelio Aleman, President and CEO of First BanCorp (NYSE:FBP), recently sold 50,000 shares of the company’s common stock, according to a filing with the Securities and Exchange Commission. The shares were sold on November 11 at an average price of $21.64, generating a total of approximately $1.08 million. Following this transaction, Aleman holds 1,045,261 shares in the company.
The sale was executed over multiple transactions, with prices ranging from $21.53 to $21.81 per share. Aleman, who serves as both director and officer of the company, retains direct ownership of his remaining shares.
In other recent news, First BanCorp reported a stable financial performance in the third quarter with a net income of $73.7 million, surpassing the consensus estimate by $0.04 per share. The bank’s core return on assets (ROA) was reported at 1.58%, and tangible book value (TBV) rose significantly by 14.6%. However, Piper Sandler has adjusted its price target for shares of First BanCorp, reducing it to $21.00 from the previous $22.00, holding its Neutral rating steady. This adjustment came after the bank’s loan balances saw a modest uptick of 0.5%, half of the projected growth rate, and a slight decrease in deposit balances excluding brokered and government accounts by 0.3%. First BanCorp’s fully taxable equivalent net interest margin (FTE NIM) experienced a slight expansion of 2 basis points, reaching 4.34%, which fell short of the anticipated 12 basis points. In the third quarter, First BanCorp also repurchased $50 million of its junior subordinated debt, and the firm noted that the company’s capital ratios continue to be robust. Credit trends remained positive, with nonperforming loans (NPLs) and nonperforming assets (NPAs) declining, although net charge-offs (NCOs) increased by 9 basis points to 0.78%. These recent developments reflect First BanCorp’s focus on strengthening its financial position amidst economic challenges.
InvestingPro Insights
First BanCorp’s recent stock performance and financial metrics provide additional context to CEO Aurelio Aleman’s decision to sell shares. According to InvestingPro data, the company’s stock has shown impressive returns, with a 59.93% total return over the past year and a 35.12% return year-to-date. This strong performance aligns with the company’s current price being 95.45% of its 52-week high, suggesting the stock is trading near peak levels.
Despite the recent sale by the CEO, First BanCorp maintains a solid financial position. The company boasts a P/E ratio of 11.77, indicating a relatively attractive valuation compared to earnings. Additionally, First BanCorp has demonstrated a commitment to shareholder returns, with an InvestingPro Tip noting that the company has raised its dividend for 7 consecutive years. The current dividend yield stands at 2.96%, offering investors a steady income stream.
However, investors should be aware that 5 analysts have revised their earnings downwards for the upcoming period, according to another InvestingPro Tip. This could suggest some caution regarding near-term performance expectations.
For those seeking a more comprehensive analysis, InvestingPro offers 9 additional tips for First BanCorp, providing deeper insights into the company’s financial health and market position.
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