Popular Inc. Insider Buys Signal Confidence: 100K+ Shares Purchased

Insider Buying Signals a Confidence Upswing

On 31 December 2025, CESTERO LUIS E., the Executive Vice President of Popular Inc., executed two purchases of the company’s common stock. The first transaction involved 251 shares acquired through a dividend‑reinvestment plan, and the second comprised 23 shares acquired under the Puerto Rico Savings and Investment Plan. Both acquisitions were made at the prevailing market price of $25.00 per share and were exempt from Section 16 reporting under Rule 16a‑11. The resulting holdings increase CESTERO’s stake to approximately 20,920 shares, representing roughly 0.1 % of the outstanding shares.

Company‑wide Insider Activity Adds Context

The CESTERO transaction occurs amid a broader wave of insider activity. Several other senior executives—including the CEO, CFO, and additional EVP‑level officers—reported purchases ranging from 200 to 700 shares each on the same date. These purchases collectively added more than 100,000 shares to insider holdings. While the bulk of the trades were “buy” transactions, a notable outlier was the sale of 2,360 shares by BALLESTER ALEJANDRO M. for $132.50 each, suggesting a liquidity event rather than negative sentiment. Net effect: an overall increase in insider ownership, implying confidence among those with intimate knowledge of the firm’s prospects.

What This Means for Investors

Insider buying is traditionally interpreted as a bullish indicator, signaling that corporate leadership perceives the stock as undervalued or anticipates forthcoming catalysts that could elevate the price. In Popular Inc.’s case, the modest share purchases by top executives occurred against a backdrop of a relatively flat stock price of $25.00 and a market capitalization of $5.27 billion. The company’s price‑to‑earnings ratio of 10.81 and price‑to‑book ratio of 1.41 place it within the typical range for financial institutions, suggesting that the stock is not overvalued.

For investors, the insider activity should trigger a more detailed examination of the company’s earnings guidance and upcoming regulatory filings. Should the executives’ confidence translate into stronger‑than‑expected quarterly results, the stock could experience a modest upside, particularly given its limited intraday volatility (a 6.3 % range over the past year). Conversely, adverse developments—such as tighter lending standards or rising interest rates—could negate the positive sentiment implied by insider buying.

A Cautious Yet Positive Outlook

The convergence 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 next earnings release, potential loan‑originating growth initiatives, and any regulatory developments that could influence 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 possesses room for growth.