Exploring First BanCorp. (FBP) Investor Profile: Who’s Buying and Why?

You're looking at First BanCorp. (FBP) and wondering who's really driving the stock price, right? Honestly, this isn't a retail-heavy name; it's an institutional powerhouse, meaning the big money managers control the action. The latest data from November 2025 shows institutional investors own a staggering 97.91% of the stock. Think about that: nearly every share is held by a major fund, including giants like BlackRock, Inc. and Vanguard Group Inc., who held a combined over 44 million shares as of mid-2025. Why are they so heavily committed to this Puerto Rico-headquartered bank, especially when analysts are forecasting a 2025 average price target of $24.00 and full-year earnings per share (EPS) of around $1.96? Are they betting on the strong Q3 2025 net income of $100.5 million to sustain the momentum, or are they seeing something defintely bigger in the regional banking space that the retail market is missing? We need to peel back the layers on this concentration risk and figure out what their playbook is for maximizing returns.

Who Invests in First BanCorp. (FBP) and Why?

You're looking at First BanCorp. (FBP) and trying to figure out who else is buying, and honestly, the answer is overwhelmingly institutional. Nearly all of the stock is held by large funds, but their motivations break down into three distinct camps: passive index tracking, active value hunting, and income generation.

The investor profile for First BanCorp. is defintely top-heavy, with institutional investors holding a massive 97.91% of the company's stock. This means only a tiny fraction is left for retail investors like you and me. The big players are the ones moving the needle here, which is typical for a mid-cap regional bank with a solid, but not flashy, profile.

Here's the quick breakdown of the primary investor types, based on data available through late 2025:

• Passive Institutional Funds: These are the giants like BlackRock, Inc. and The Vanguard Group, Inc. They hold the stock because it's part of a major index, not necessarily because an analyst picked it.
• Active Institutional Managers: Firms like FMR LLC (Fidelity) and State Street Corp. that actively manage portfolios and make specific buy/sell decisions based on company fundamentals.
• Hedge Funds/Trading Firms: More aggressive players, such as Jane Street Group LLC and Millennium Management LLC, who are looking for short-term gains or arbitrage opportunities.

The sheer size of the largest holders is staggering. As of June 30, 2025, BlackRock, Inc. held over 23.2 million shares, while The Vanguard Group, Inc. owned more than 20.9 million shares. That's a lot of conviction, even if a lot of it is driven by index mandates.

Investment Motivations: The Three Pillars of FBP Appeal

Investors aren't buying First BanCorp. just for the warm weather in Puerto Rico. They're focused on three core financial drivers: a sustainable dividend, a compelling valuation, and a strong regional market position.

1. Dividend Income: For income-focused funds and retirees, the dividend is a major draw. First BanCorp. pays an annual dividend of $0.72 per share, resulting in a yield between 3.56% and 3.70% as of late 2025. The best part? The payout ratio is very sustainable, sitting around 35.13% of earnings, meaning the company has plenty of room to cover the payment even if earnings dip a bit.

2. Value and Growth Prospects: The stock screens well for value investors. The trailing price-to-earnings (P/E) ratio is around 9.58, which is low for the broader market and suggests the stock may be undervalued relative to its earnings power. The consensus analyst target price of $25.40 per share implies an upside of over 20% from a recent price, which is a significant growth signal for a bank stock.

3. Unique Market Position: First BanCorp. is a financial holding company with a strong presence in Puerto Rico, the U.S. Virgin Islands, and Florida. Its focus on Consumer (Retail) Banking is the main revenue driver. This geographic and business segment diversification, especially its dominance in the Puerto Rican market, provides a moat (a sustainable competitive advantage) that is attractive to long-term holders. If you want exposure to the Caribbean's financial sector, FBP is a clear choice. You can read more about this in First BanCorp. (FBP): History, Ownership, Mission, How It Works & Makes Money.

Here is a snapshot of the 2025 fiscal year financial appeal:

Investment Strategies: The Active vs. Passive Tug-of-War

The high institutional ownership means the stock is subject to two very different investment strategies playing out simultaneously.

Passive, Long-Term Holding: This is the dominant strategy, driven by the index funds. They are long-term holders by definition, providing a stable, foundational demand for the stock. They are not concerned with quarterly fluctuations; they are simply matching the market index performance. This is why you see firms like BlackRock and Vanguard holding such massive, relatively stable positions quarter after quarter.

Active Value and Momentum Investing: This is where the action is. Active managers see the low P/E ratio and the strong Q3 2025 net income of $100.5 million, and they see a buying opportunity. For example, Jane Street Group LLC dramatically increased its stake by 1,445.7% in the first quarter of 2025, and Millennium Management LLC boosted its holdings by 61.2% in the same period. These are not passive moves; they are high-conviction bets. This activity suggests that some investors are employing a deep-value strategy, betting on the stock price to converge with its strong fundamentals, while others are using momentum or event-driven strategies to capitalize on earnings beats or market sentiment shifts.

What this estimate hides is the impact of regional economic factors. The performance of First BanCorp. is highly tied to the economic health of its core markets, especially Puerto Rico, which adds a layer of complexity that active managers are trying to price in.

Next Step: Review the Q4 2025 earnings call transcript to see if management comments on deposit trends and loan growth align with the aggressive buying activity from the active funds.

Institutional Ownership and Major Shareholders of First BanCorp. (FBP)

You're looking at First BanCorp. (FBP) and wondering who the real decision-makers are, and honestly, you should be. The direct takeaway here is that FBP is overwhelmingly owned by large financial entities, with institutional investors holding approximately 97.91% of the company's stock as of November 2025. This means the stock's price movements and the company's long-term strategy are largely dictated by a handful of massive asset managers and index funds.

I've spent two decades watching this dynamic, and for a regional bank like FBP, this level of institutional concentration is a double-edged sword: it provides stability but also demands clear, consistent capital management. Let's look at who's holding the cards.

Top Institutional Investors and Their FBP Stakes

The investor profile for First BanCorp. is a classic index-fund story. The top holders are the behemoths of the asset management world, primarily passive funds that track major indices like the S&P Small-Cap 600, which FBP is a part of. This isn't a story about activist hedge funds; it's about massive, systematic capital allocation.

As of the most recent filings (September 2025 data), the top five institutional holders control a significant portion of the outstanding shares. Here's the quick math on the top players and their holdings:

BlackRock and Vanguard alone own nearly 30% of the company. That's a huge concentration. This concentration means their mandate-often low-cost index tracking-drives a lot of the trading volume, not necessarily a deep conviction on the bank's Mission Statement, Vision, & Core Values of First BanCorp. (FBP).

Recent Shifts: Who's Buying and Selling?

The third quarter of 2025 showed a mixed, but slightly positive, picture of institutional sentiment, which is typical as fund managers rebalance their portfolios. You see some funds trimming their exposure, but others are actively building their stakes, defintely seeing value at current levels.

• Buyers: Citigroup Inc. made a notable increase, boosting its position by a significant 48.3%, holding 402,890 shares as of November 10, 2025. JPMorgan Chase & Co. also increased its stake by 15.1% around the same time.
• Sellers: Some managers are taking profits or reallocating. For example, LSV Asset Management reduced its stake by 4.4% in the second quarter of 2025, selling 70,400 shares, and Intech Investment Management LLC cut its position by 8.3% in Q2 2025.
• Steady Hands: The Vanguard Group Inc., one of the largest holders, made only a minor increase of 0.7% as of November 7, 2025, reflecting the steady, passive nature of its index-tracking funds.

What this tells me is that the institutional base is stable, but there's opportunistic trading happening on the margins. The net effect of this buying and selling pressure is what smooths out the stock's volatility over time.

The Impact of Institutional Ownership on FBP Strategy

When institutions own nearly 98% of the stock, they don't just influence the price; they essentially set the agenda for capital allocation. These investors prioritize two things: capital return and balance sheet strength. FBP's recent actions directly reflect this pressure.

In October 2025, the Board of Directors approved a new stock repurchase program of up to $200 million, which is expected to run through the end of 2026. This is a clear signal to institutional shareholders that management is committed to returning excess capital, which is critical for a bank with a strong capital base. In the third quarter of 2025 alone, the company declared $29 million in dividends and repurchased $50 million in common stock, demonstrating a clear focus on shareholder value. Aurelio Alemán, the CEO, explicitly tied the new repurchase program to the 'continued confidence in the strength of our balance sheet and long-term outlook.' That's the language of a management team focused on satisfying its institutional base. The other key action is the quarterly cash dividend of $0.18 per share, payable in December 2025, which gives the stock a competitive yield. For a large fund, that consistent, reliable dividend is a major part of the investment thesis. Your action item is simple: watch the execution of that $200 million buyback. Slow execution signals a lack of conviction, but a swift, opportunistic pace will boost earnings per share (EPS) and tangible book value per share, which rose to $11.79 in Q3 2025.

Key Investors and Their Impact on First BanCorp. (FBP)

You need to know who holds the most sway over First BanCorp. (FBP) because their moves often signal where the stock is headed. The simple truth is that this is an institutionally-owned company, meaning the big funds-not individual investors-drive the action. Institutional investors own roughly 97.91% of the company's stock, which is a massive concentration of power.

The investor profile here is dominated by passive index and large active management firms. This means their influence is less about activist demands and more about capital allocation decisions, like dividends and buybacks. They want a steady return, and they expect the management team to deliver it consistently. This is a bank, not a tech startup; stability is the name of the game.

The Heavy Hitters: Top Institutional Owners

The top shareholders are the usual suspects in the institutional world, but their sheer size here gives them a powerful voice. As of the most recent filings (September 2025), two firms alone account for over a quarter of the total shares outstanding. This is defintely where the bulk of the stock's volume and stability comes from.

• BlackRock, Inc.: The largest holder, with approximately 23,168,160 shares, representing about 14.77% of the company.
• The Vanguard Group, Inc.: A close second, holding around 21,053,743 shares, or 13.42% of the stock.
• FMR LLC (Fidelity): Another major player, holding over 10 million shares as of June 2025.

Here's the quick math: BlackRock and Vanguard together own over 44 million shares. When funds this large make small portfolio adjustments, it can create significant price movement, especially for a regional bank like First BanCorp. (FBP).

Investor Influence: Driving Capital Actions

The influence of these large institutional holders is most visible in First BanCorp.'s capital allocation strategy. They push for shareholder-friendly moves that return cash, which is a key trait for bank stocks. You can see this clearly in the actions announced in October 2025.

The Board of Directors approved a new stock repurchase program of up to $200 million, which is expected to run through the end of Q4 2026. This authorization is a direct response to shareholder demand for capital return and signals management's confidence in the balance sheet. Plus, they declared a quarterly cash dividend of $0.18 per share, payable in December 2025, which translates to an annualized yield of around 3.6%.

This commitment to returning capital is what keeps the big funds happy and invested. If you want to understand the long-term strategy, you should also review the Mission Statement, Vision, & Core Values of First BanCorp. (FBP).

Recent Notable Moves and Insider Activity

Looking at the 2025 13F filings shows a mixed but active picture. While the top index funds are generally maintaining their positions, some hedge funds and active managers are making significant bets, both buying and selling. This is normal churn, but the scale of some moves is worth noting.

For example, in the first quarter of 2025, Jane Street Group LLC boosted its holdings by a massive 1,445.7%, and Millennium Management LLC increased its stake by 61.2%. These aren't passive moves; they suggest a strong conviction trade by sophisticated hedge funds. Conversely, the second quarter saw some selling, with Intech Investment Management LLC lowering its position by 8.3%.

The table below summarizes some of the most notable recent transactions from the first half of the 2025 fiscal year:

What this estimate hides is the insider activity. CEO Aurelio Aleman sold 50,000 shares in August 2025 for a total transaction value of $1,115,000. While this is a small fraction of the company's total float, insider selling is always a data point you need to factor into your risk assessment, even if corporate insiders still own about 2.30% of the stock.

Next step: Check the latest 10-Q filing for Q3 2025 to see if the large hedge fund buying momentum continued into the fall.

Market Impact and Investor Sentiment

You're looking for a clear signal on First BanCorp. (FBP) from the smart money, and the picture is one of cautious, institutional confidence. The current sentiment among major shareholders is defintely positive, leaning toward a 'Moderate Buy' consensus from Wall Street analysts, which is a stronger rating than many of its regional banking peers are getting right now.

This positive view is anchored in solid fundamentals, not just hope. Analysts point to First BanCorp.'s core Return on Assets (ROA) sitting at a healthy 1.58% and a notable 14.6% increase in Tangible Book Value (TBV). That's a strong sign of management effectively growing the underlying value of the bank's assets. For the full 2025 fiscal year, the consensus revenue forecast is approximately $986.07 million, with an expected Earnings Per Share (EPS) of $1.96, which suggests a steady, profitable trajectory.

Who Owns First BanCorp. and What Are They Doing?

The investor profile of First BanCorp. is overwhelmingly institutional, meaning the stock's price action is heavily dictated by large funds, not retail traders. Institutional investors own a massive 97.91% of the company's stock, which tells you the big players are deeply committed. The largest holders are exactly who you'd expect: the titans of asset management.

Here's the quick math on the top institutional positions as of the second quarter of 2025:

• BlackRock, Inc. held 23,298,669 shares, valued at over $485.3 million.
• Vanguard Group Inc. held 20,901,001 shares, valued at over $435.3 million.
• FMR LLC held 10,019,913 shares, valued at over $208.7 million.

While the overall ownership is stable, recent moves show a mix of conviction and profit-taking. On the buying side, firms like Millennium Management LLC boosted their holdings by a significant 61.2% in the first quarter of 2025, buying 580,489 additional shares. Wellington Management Group LLP also initiated a new position worth $28.344 million. But, to be fair, some funds are trimming: LSV Asset Management cut its stake by 4.4%, selling 70,400 shares in Q2 2025. Even the CEO, Aurelio Aleman, sold 50,000 shares for $1.115 million, which is a common, but noteworthy, insider action. The buying activity outweighs the selling, suggesting net positive conviction.

Market Reactions and Capital Actions

The market's response to First BanCorp.'s performance has been a little choppy, which is typical for regional banks navigating a tricky economic cycle. For instance, after the Q2 2025 earnings release, the stock dipped 2.42% in one day, even though the bank reported $0.50 EPS and $254 million in revenue, both beating analyst expectations. This highlights that the stock price isn't just reacting to earnings beats; it's also factoring in broader concerns about the Puerto Rico economy and future credit costs, which analysts have flagged as key risk factors.

The most concrete signal of management's confidence came in October 2025. The Board approved a new stock repurchase program of up to $200 million, which is a clear, shareholder-friendly move that will reduce the share count and boost EPS. Plus, the bank declared a quarterly cash dividend of $0.18 per share, payable in December 2025. These capital actions are a strong vote of confidence from the company itself, signaling they believe the stock is undervalued and they have ample capital. If you want to dive deeper into the core metrics that support these actions, you should check out Breaking Down First BanCorp. (FBP) Financial Health: Key Insights for Investors.

Analyst Consensus and Future Outlook

The average 12-month price target from the analysts covering First BanCorp. is approximately $24.00, with some targets going as high as $25.00, suggesting a decent upside from the current price. This 'Moderate Buy' consensus is driven by the bank's operational strength in its core market, especially the loan portfolio's 10% annualized growth and strong deposit inflows in Puerto Rico.

The key takeaway is that the institutional base is solid, and the management team is using capital actions-like the $200 million buyback-to support the stock. The risk remains tied to the regional economic outlook, but the bank's performance is currently outpacing those fears. Your next step should be to model the impact of that $200 million buyback on the 2026 EPS forecast.