OFG Bancorp Story

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OFG -- USA Stock  

USD 19.45  0.39  1.97%

While some baby boomers are getting worried about financial services space, it is reasonable to digest OFG Bancorp against economic and market trends. As we have suggested previously, OFG Bancorp is beginning its dip as shareholders shift to be more bearish due to the increased sector volatility. OFG Bancorp slowly supersedes the market. The returns on the market and returns on OFG Bancorp appear slightly-related for the last few months. Sound fundamental drivers of the firm may indicate signs of shorter-term price drift for shareholders. OFG Bancorp is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 25th of January 2021.
Published over a month ago
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Will OFG Bancorp (NYSE:OFG) continue to dip in February?
OFG Bancorp's average rating is Buy from 2 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on OFG Bancorp market sentiment investors' perception of the future value of OFG Bancorp. Let us look at a few aspects of OFG Bancorp technical analysis. About 91.0% of the company shares are owned by institutional investors. OFG Bancorp has price-to-book ratio of 1.06. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. The entity has Price/Earnings To Growth (PEG) ratio of 1.92. The firm last dividend was issued on the 30th of December 2020. OFG Bancorp had 11:10 split on the 29th of December 2004.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of OFG Bancorp. In general, we focus on analyzing OFG Bancorp stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build OFG Bancorp's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of OFG Bancorp's intrinsic value. In addition to deriving basic predictive indicators for OFG Bancorp, we also check how macroeconomic factors affect OFG Bancorp price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of OFG Bancorp's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of OFG Bancorp in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as OFG Bancorp. Your research has to be compared to or analyzed against OFG Bancorp's peers to derive any actionable benefits. When done correctly, OFG Bancorp's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in OFG Bancorp.

How does OFG Bancorp Stands against Peers?

Analyzing OFG Bancorp competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to OFG Bancorp across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be.
Check out OFG Bancorp Competition Details

How OFG Bancorp utilizes its cash?

To perform a cash flow analysis of OFG Bancorp, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash OFG Bancorp is receiving and how much cash it distributes out in a given period. The OFG Bancorp cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Closer look at OFG Bancorp Downside Variance

OFG Bancorp has current Downside Variance of 6.33. Downside Variance (or DV) is measured by target semi-variance and is termed downside volatility. It is expressed in percentages and therefore allows for rankings in the same way as variance. One way to view downside volatility is the annualized variance of returns below the target.

Downside Variance is the probability-weighted squared below-target returns. The squaring of the below-target returns has the effect of penalizing failures at an exponential rate. This is consistent with observations made on the behavior of individual decision-making under.

Downside Variance 
 = 
SUM(RET DEV)2 
N(ER) 
 = 
6.33
SUM = Summation notation
RET DEV = Actual returns deviation over selected period
N(ER) = Number of points with returns less than expected return for the period
Let's now compare OFG Bancorp Downside Variance to its closest peers:
OFG
KB
EBTC
AX
EGBN
OFG6.326849592546439
KB4.09
EBTC4.82
AX4.49
EGBN5.96

OFG Bancorp has 77 percent chance to finish below $18.76 next week

The semi variance is down to 5.13 as of today. OFG Bancorp currently demonstrates below-verage downside deviation. It has Information Ratio of 0.1 and Jensen Alpha of 0.47. However, we do advice investors to further question OFG Bancorp expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Although some other entities under the banks?regional industry are still a bit expensive, OFG Bancorp may offer a potential longer-term growth to shareholders. With a relatively neutral outlook on the latest economy, it is better to hold off any trading of OFG Bancorp as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to OFG Bancorp.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of OFG Bancorp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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