Trade-Ideas LLC identified

OFG Bancorp

(

OFG

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified OFG Bancorp as such a stock due to the following factors:

  • OFG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.8 million.
  • OFG has traded 64,541 shares today.
  • OFG is trading at 2.05 times the normal volume for the stock at this time of day.
  • OFG is trading at a new high 3.19% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on OFG:

TheStreet Recommends

OFG Bancorp, a financial holding company, provides various banking and financial services primarily in Puerto Rico. It operates in three segments: Banking, Wealth Management, and Treasury. The stock currently has a dividend yield of 4.9%. OFG has a PE ratio of 54. Currently there are 2 analysts that rate OFG Bancorp a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for OFG Bancorp has been 852,000 shares per day over the past 30 days. OFG has a market cap of $214.1 million and is part of the financial sector and banking industry. The stock has a beta of 1.02 and a short float of 17.7% with 8.37 days to cover. Shares are down 31.4% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates OFG Bancorp as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 2.6%. Since the same quarter one year prior, revenues slightly increased by 0.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • 44.00% is the gross profit margin for OFG BANCORP which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, OFG's net profit margin of 3.70% is significantly lower than the industry average.
  • Net operating cash flow has significantly decreased to $20.31 million or 69.10% when compared to the same quarter last year. Despite a decrease in cash flow OFG BANCORP is still fairing well by exceeding its industry average cash flow growth rate of -96.18%.
  • OFG BANCORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, OFG BANCORP reported lower earnings of $1.50 versus $1.74 in the prior year. For the next year, the market is expecting a contraction of 96.0% in earnings ($0.06 versus $1.50).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Commercial Banks industry. The net income has significantly decreased by 76.6% when compared to the same quarter one year ago, falling from $19.53 million to $4.57 million.

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