Popular Inc. Executives Buy More Shares, Signaling Confidence in a Steady Stock

Insider Buying Signals a Confidence Upswing

On December 31, 2025, CESTERO LUIS E., the Executive Vice President of Popular Inc., purchased 251 shares of the company’s common stock through a dividend‑reinvestment plan and an additional 23 shares under the Puerto Rico Savings and Investment Plan. Both transactions were executed at the prevailing market price of $25.00 per share and were exempt from Section 16 reporting under Rule 16a‑11. The acquisitions increased CESTERO’s holding to approximately 20,920 shares, representing a modest 0.1 % stake in the company.

Company‑wide Insider Activity Adds Context

The transaction sits amid a flurry of insider activity across the board. Several other senior executives, including the CEO, CFO, and other EVP‑level officers, reported purchases of between 200 and 700 shares each on the same date, raising their cumulative holdings to well above 100,000 shares. While the majority of these trades were “buy” transactions, a notable outlier was the sale of 2,360 shares by BALLESTER ALEJANDRO M. for $132.50 each, which may reflect a liquidity event rather than a signal of negative sentiment. The net effect, however, is an overall increase in insider ownership, suggesting that those with the most intimate knowledge of the firm’s prospects are confident enough to add to their positions.

What This Means for Investors

Insider buying is traditionally viewed as a bullish indicator, implying that corporate leadership believes the stock is undervalued or that upcoming events will drive the price higher. In Popular Inc.’s case, the modest share purchases—particularly by top executives—occurred against a backdrop of a relatively flat stock price ($25.00) and a healthy market cap of $5.27 billion. The company’s price‑to‑earnings ratio of 10.81 and price‑to‑book ratio of 1.41 position it within the typical range for financial institutions, suggesting that the stock is not overvalued.

For investors, the insider activity should prompt a closer look at the company’s earnings guidance and upcoming regulatory filings. If the executives’ confidence is borne out by stronger-than‑expected quarterly results, the stock could see a modest upside, especially given its limited intraday volatility (a 6.3 % range over the past year). Conversely, if the firm faces headwinds—such as tighter lending standards or rising interest rates—insider optimism may not translate into market gains.

A Cautious Yet Positive Outlook

The combination of insider buying, a stable price‑earnings multiple, and a robust market cap points to a cautiously optimistic outlook for Popular Inc. Investors should monitor the company’s next earnings release, potential loan‑originating growth initiatives, and any regulatory developments that could affect the bank’s profitability. While the current insider activity does not guarantee a rally, it does indicate that those most positioned to steer the company believe the stock is reasonably priced and has room to grow.