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This Bank Stock Just Saw a $24 Million Fund Sale, but Here's Why It's Still a Top Holding

Motley Fool - Thu Jan 29, 10:19AM CST

Key Points

  • Polaris Capital Management sold 204,200 shares of Popular in the fourth quarter; the estimated trade size was $24.13 million based on quarterly average prices.

  • Meanwhile, the quarter-end position value decreased by $27.63 million, reflecting both the share sale and price movement.

  • After the transaction, the fund reported holding 682,330 BPOP shares valued at $84.96 million.

On January 29, Polaris Capital Management disclosed a fourth-quarter sale of 204,200 shares of Popular(NASDAQ:BPOP), an estimated $24.13 million trade based on quarterly average pricing.

What happened

According to a Securities and Exchange Commission (SEC) filing dated January 29, Polaris Capital Management reduced its position in Popular(NASDAQ:BPOP) by 204,200 shares during the fourth quarter. The estimated transaction value was $24.13 million, based on the average closing price for the period. The fund ended the quarter holding 682,330 shares valued at $84.96 million, and the net position value dropped by $27.63 million, reflecting both share sales and market price changes.

What else to know

This was a partial sale; Popular now accounts for 7.05% of Polaris’s reportable 13F assets under management.

Top holdings after the filing:

  • NASDAQ:BPOP: $84.96 million (7.1% of AUM)
  • NASDAQ:JAZZ: $73.52 million (6.1% of AUM)
  • NASDAQ:LIN: $57.09 million (4.7% of AUM)
  • NYSE:SW: $55.98 million (4.6% of AUM)
  • NASDAQ:UTHR: $50.50 million (4.2% of AUM)

As of January 28, Popular shares were priced at $131.54, up 31.9% over the past year and outperforming the S&P 500 by 16.89 percentage points.

ETF overview

MetricValue
Revenue (TTM)$3.05 billion
Net income (TTM)$833.16 million
Dividend yield2.3%
Price (as of January 28, 2026)$131.54

ETF snapshot

  • BPOP offers a comprehensive suite of retail, mortgage, and commercial banking products, including deposit accounts, loans, credit cards, and investment services across Puerto Rico, the United States, and the British Virgin Islands.
  • The company generates revenue primarily through net interest income from lending activities, complemented by fee-based income from investment banking, insurance, and leasing services.
  • It targets individuals, small businesses, and commercial clients, with a strong presence in regional banking markets, particularly in Puerto Rico.

Popular is a leading regional financial institution with a diversified portfolio of banking and financial services. The company leverages its extensive branch and ATM network to serve a broad customer base, focusing on both consumer and commercial segments. Its established market position and comprehensive service offerings provide a competitive advantage in its core operating regions.

What this transaction means for investors

Even after trimming exposure, Popular remains the largest holding in this portfolio, signaling conviction hasn’t disappeared so much as it has been recalibrated. That distinction matters for long-term investors reading signals in institutional trades.

The company has been executing well. In its most recent earnings report, net interest income remained resilient despite rate volatility, credit quality stayed stable, and capital ratios continued to exceed regulatory minimums. Management also maintained a disciplined approach to expense control while benefiting from strong deposit pricing in its core markets. Those fundamentals help explain why the stock is up nearly 32% over the past year and comfortably ahead of the broader market.

At the same time, concentration risk appears to be the key driver here. With the position still representing just over 7% of reported assets, the sale looks less like a bearish call and more like a risk-management decision after a sharp re-rating. Compared with other top holdings, this remains one of the portfolio’s highest-conviction ideas.

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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends United Therapeutics. The Motley Fool recommends Linde. The Motley Fool has a disclosure policy.

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