Is Popular Stock a Buy or Sell After a Director Dumps Shares Worth Nearly $3 Million?

Core Viewpoint - Popular, a regional bank serving Puerto Rico and beyond, reported significant insider selling by Richard L. Carrion amid an 18.7% one-year total return [1][4]. Transaction Summary - Richard L. Carrion sold 25,000 shares for approximately $2.8 million, reducing his direct ownership from 218,020 shares to 193,020 shares, which now have a post-transaction value of about $21.8 million [2][6]. - The shares were sold at a weighted average price of $113.50 per share, while the stock closed at $112.86 on the transaction date [6]. Company Overview - Popular generated a revenue of $2.98 billion and a net income of $775.66 million over the trailing twelve months (TTM) [4]. - The company has a dividend yield of 2.68% and a one-year price change of 18.69% as of November 24, 2025 [4]. Insider Trading Context - The sale represented 11.47% of Carrion's direct holdings prior to the transaction [6]. - This transaction is notable as it is the only open-market sale by Carrion in the past two years, with previous filings being administrative entries [6]. Stock Performance - Popular's stock has been performing well, with a net interest income of $646.5 million in Q3 2025, up from $572.5 million in 2024, contributing to a net income of $211.3 million compared to $155.3 million in the prior year [11]. - The stock reached a 52-week high of $129.32 in September 2025, and analysts predict an average price target of $143.11 as of November 28, 2025 [10]. Investment Perspective - Despite the insider selling, there is no immediate concern for shareholders, as Carrion retains over 193,000 direct shares and an additional 74,467 shares indirectly [9]. - Popular's price-to-earnings ratio of 10 is lower than it has been for most of the past year, indicating that the stock may be undervalued and suggesting it could be a good time to buy [12].