BCH rises 5.15% as institutions invest, prompting analysts to revise their forecasts
- Institutional investors boosted stakes in Banco de Chile (BCH), led by Campbell & CO’s 185.3% share increase to $794K. - Yousif Capital, Parallel Advisors, and Farther Finance Advisors also raised holdings, with the latter adding 3,009 shares (1,355.4% surge). - BCH’s Q3 earnings missed estimates but maintained strong profitability (23.25% ROE), while analysts raised price targets to $33–$35. - Institutional ownership now covers 1.24% of shares, reflecting confidence in BCH’s resilience despite short-ter
Institutional investors have recently renewed their focus on
Other institutional investors, such as Yousif Capital Management LLC and Parallel Advisors LLC, acquired 375 and 428 shares, respectively, over the quarter. Brooklyn Investment Group and Hantz Financial Services Inc. also made substantial additions, raising their stakes by 823.3% and 276.2%. Farther Finance Advisors LLC recorded the largest percentage jump, increasing its holdings by 1,355.4% with an extra 3,009 shares. Collectively, these moves have pushed institutional ownership in
BCH’s third-quarter results were below market expectations. The bank reported earnings per share of $0.60, missing the consensus forecast of $0.62, and revenue came in at $675.3 million, under the anticipated $832.0 million. Nevertheless, BCH continues to post robust profitability, with a return on equity of 23.25% and a net margin of 32.87%. The stock is currently trading at a price-to-earnings ratio of 13.06, close to its 52-week high.
Analysts maintain a cautiously positive outlook for the stock. The consensus price target is $34, with Goldman Sachs and JPMorgan raising their targets to $35 and $33, respectively. Zacks Research recently upgraded its rating to “Strong Buy,” while other analysts remain neutral or recommend holding. This generally favorable, though mixed, sentiment suggests confidence in BCH’s long-term prospects, despite recent short-term underperformance.
BCH provides a broad spectrum of financial services in Chile, including retail banking, lending, and insurance. The company’s solid balance sheet and steady profitability underpin its current valuation, though its recent earnings miss has impacted short-term results. The uptick in institutional buying points to increasing confidence in the bank’s strategic direction and operational strength.
As these changes unfold, investors are monitoring further signals from institutional activity and analyst opinions. Despite a 5.01% drop in the last month, the stock has gained 16.99% so far this year, indicating a resilient underlying trend.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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