In a recent transaction, Carlos Power, Executive Vice President (EVP) of First Bancorp (NASDAQ:FBNC) /PR/ (NYSE:FBP), sold 22,896 shares of the company's common stock, generating over $490,000 in the process. The sale, which took place on July 30, 2024, was executed at an average price of $21.5329 per share.
This sale has adjusted Power's direct holdings in First Bancorp to a total of 232,340 shares. Additionally, it's worth noting that Power also has an indirect ownership through a 401(k) Plan, which holds 20,198.9449 shares of First Bancorp common stock.
First Bancorp, headquartered in San Juan, Puerto Rico, operates as a state commercial bank and is known for providing various banking products and services to its customers.
The transaction details, including the number of shares sold and the price per share, were disclosed in a regulatory filing with the Securities and Exchange Commission. The sale represents a significant transaction for Power, although it does not necessarily indicate a change in the company's fundamentals or future prospects.
Investors often monitor insider transactions as they can provide insights into how executives perceive the company's valuation and future performance. However, it's important to consider that insider sales can occur for various reasons, including personal financial management, and may not always reflect the executive's outlook on the company's future.
First Bancorp's stock performance and executive transactions continue to be watched closely by investors and analysts, as they can influence market perceptions and investment decisions.
In other recent news, First BanCorp reported a steady growth in Q2 2024 with a net income of $76 million and a return on assets of 1.61%. The bank's total loans increased by 2.4% across all segments and improvements were noted in its deposit franchise. A significant development was the announcement of a new authorization for capital deployment of up to $250 million, aimed at repurchasing common stock or redeeming loan securities.
In other developments, First BanCorp maintains a positive outlook for the upcoming quarters, with expectations of growth in the Puerto Rican economy. The bank's capital ratios remain strong, well above well-capitalized benchmarks, and loan growth has been driven by expansion and new banking relationships. However, non-performing loans saw a slight increase, mainly in commercial and construction.
These recent developments highlight First BanCorp's focus on preserving shareholder value, planning to return 100% of earnings through buybacks and dividends. The bank is also investing in technology to support its core deposit growth, aiming to maintain an efficiency ratio of around 52%. The company's strong capital position and positive economic indicators suggest it is well-placed to capitalize on opportunities in the Puerto Rican market.
InvestingPro Insights
In the wake of Carlos Power's transaction involving First Bancorp /PR/ (NYSE:FBP), investors may be interested in some key metrics that paint a broader picture of the company's financial health. As of the last twelve months leading up to Q2 2024, First Bancorp has maintained a market capitalization of approximately $3.39 billion. The company's P/E ratio stands at a competitive 11.37, which slightly adjusted to 11.02 in the same period, indicating a potentially attractive valuation relative to near-term earnings growth. This aligns with one of the InvestingPro Tips that highlights the company's low P/E ratio in relation to its earnings growth.
Furthermore, First Bancorp has demonstrated a commitment to returning value to shareholders. Notably, the company has raised its dividend for six consecutive years, with a dividend yield of 3.05% as of the last recorded date. The dividend growth over the last twelve months was 14.29%, which is a testament to First Bancorp's financial stability and dedication to its shareholders. This is underscored by another InvestingPro Tip that points out the consistent share buyback efforts by management, signaling confidence in the company's prospects.
Investors tracking the stock's performance will find that First Bancorp has experienced a strong return over the last month, with a price total return of 14.06%. Over the last three and six months, the returns have been even more impressive at 19.93% and 29.91%, respectively. These figures are indicative of a positive trend in the stock's performance, which may intrigue potential investors.
For those interested in gaining more insights, there are additional InvestingPro Tips available on the platform, providing in-depth analysis and recommendations. As of the latest update, there are 12 additional InvestingPro Tips for First Bancorp, which can be accessed by visiting https://www.investing.com/pro/FBP.
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