Insider Selling by EVP McDonald Signals a Quiet Shift The recent Form 4 filing shows EVP Michael McDonald liquidating 34,122 shares of First BanCorp‑Puerto Rico at an average price of $22.11 on January 28, 2026. The transaction barely dips below the close price of $21.88, reflecting a marginal 0.01 % decline in the stock. While the sale itself is modest relative to McDonald’s remaining 62,937 shares, the timing—just days after the company announced an 11 % dividend hike—raises questions about how insiders view the bank’s near‑term prospects.
A Pattern of Tactical Trading McDonald’s trade is part of a broader pattern of insider activity at First BanCorp. The bank’s leadership and other directors have been actively buying and selling in the past nine months, with notable trades from EVP Kafka Donald, President‑CEO Aleman Aurelio, and several non‑executive directors. These moves have largely balanced each other out, but the recent sell‑only action by an EVP is atypical; most other transactions involve a mix of buys and sells, often around strategic events such as earnings releases or dividend declarations. The lack of a corresponding buy suggests McDonald may be rebalancing his personal portfolio rather than reacting to a specific corporate cue.
Implications for Investors For investors, the sale does not signal an imminent downgrade. The company’s fundamentals—an 11 % dividend increase, a solid price‑earnings ratio of 10.03, and a market cap of roughly $3.35 billion—indicate stability. However, the EVP’s exit may be interpreted as a cautious stance amid the bank’s exposure to the Puerto Rican economy, which remains sensitive to political and economic volatility. If other insiders follow suit, it could pressure the stock modestly, especially if the market perceives the trades as a hedge against potential regulatory or economic headwinds.
Looking Ahead First BanCorp‑Puerto Rico is positioned to benefit from its diversified portfolio of commercial banking, loan servicing, and vehicle leasing. The recent dividend boost signals management confidence, yet the EVP’s liquidation hints at a prudent personal risk‑management strategy. Investors should watch for further insider activity, particularly around upcoming quarterly earnings and any changes in the regulatory environment for banks operating in Puerto Rico. In the short term, the market may treat the sale as noise, but sustained selling from senior executives could prompt a reassessment of the bank’s risk profile and valuation.
| Date | Owner | Transaction Type | Shares | Price per Share | Security |
|---|---|---|---|---|---|
| 2026-01-28 | McDonald Michael (EVP) | Sell | 34,122.00 | 22.11 | First BanCorp Common Stock, par value $0.10 per share |
