Analysts Assign Moderate Buy to Popular With $133.78 Average Price Target
Popular, Inc. has received an average Moderate Buy rating from 11 brokerages, with nine Buy and two Hold ratings and a $133.78 average 12-month price target. Truist set a $153 target, UBS issued a neutral rating and Wells Fargo reduced its target to $135.
1. Analyst Consensus and Price Targets
Eleven brokerages currently cover Popular, Inc., assigning it an average recommendation of "Moderate Buy". Of these, nine have issued buy ratings and two have issued hold ratings. The consensus 12-month price target stands at $133.78, reflecting upside potential of approximately 4.6% from the stock’s recent trading levels. Notable among recent reports, Truist Financial initiated coverage with a buy rating and a $153.00 target, while UBS Group and Zacks Research maintained neutral and hold ratings, respectively.
2. Q3 Financial Performance and Growth Outlook
In its latest quarter, Popular reported EPS of $3.14, beating consensus estimates by $0.10. Revenue came in at $720.8 million, falling short of the $804 million forecast and marking a 1.3% year-over-year decline. The bank delivered a return on equity of 13.27% and a net margin of 17.63%. Management reiterated full-year EPS guidance of $10.06, driven by stabilization in loan growth and controlled credit costs. Investors will watch the pace of commercial lending and consumer deposit trends as indicators of near-term momentum.
3. Valuation Metrics and Dividend Profile
Popular trades at a price-to-earnings ratio of 11.3 and a price-to-earnings-growth ratio of 0.53, suggesting an attractive valuation relative to regional banking peers. The bank’s market capitalization is $8.52 billion, with shares trading within a 52-week range of $78.23 to $131.10. Popular maintains a quarterly dividend of $0.75 per share, translating to a $3.00 annualized payout and a yield of 2.3%. Its dividend payout ratio stands at 26.6%, underscoring capacity for continued distributions alongside capital retention for growth.
4. Insider and Institutional Activity
Director Richard L. Carrion and Vice President Denissa Rodriguez reduced their holdings by selling 25,000 and 1,000 shares at average prices of $113.50 and $114.84, respectively, in November. Despite these sales, insiders collectively hold 2.23% of the outstanding shares. On the institutional side, Popular remains widely held, with 87.27% of its float owned by institutional investors. Recent small-scale stakes were added by advisory and wealth management firms, indicating steady interest among professional asset managers.