Shares of First Bancorp are currently experiencing significant weakness in the market. A broader downward trend and technical selling indicators are now weighing on the price, despite a positive analyst assessment received in November.
The stock concluded trading last Friday at $50.98, marking a decline of 1.22 percent. This movement extended a recent pattern of losses, which has been evident in six out of the last ten trading sessions. Trading volume fell to approximately 113,000 shares, a potential signal of diminishing buyer interest.
Conflicting Analyst Views and Technical Downgrade
While the technical picture has deteriorated, fundamental analysis presents a more optimistic view. In early November, investment bank Piper Sandler upgraded its rating on First Bancorp from “Neutral” to “Overweight.” The firm also raised its price target from $51 to $58, citing surprisingly strong quarterly results that featured an improved net interest income.
Should investors sell immediately? Or is it worth buying First Bancorp?
The average analyst price target currently stands at $58.75, accompanied by an overall “Buy” consensus. However, the stock trades roughly 10.7 percent below its 52-week high of $56.45, highlighting the gap between longer-term expectations and recent performance.
Technical Charts Flash Sell Warnings
Chart analysis has recently downgraded the equity to a “Sell Candidate.” This shift was triggered by a sell signal from a short-term turning point identified on December 3rd. Since that signal, the stock’s value has decreased by 1.41 percent.
- A key short-term moving average is currently generating a sell signal.
- Immediate resistance for the stock is situated near $51.39.
- A crucial support level rests at $49.19. A sustained break below this point would likely intensify negative sentiment.
The broader regional banking sector remains under scrutiny. Persistent concerns regarding credit quality and the environment of sustained higher interest rates continue to pressure market sentiment. First Bancorp’s near-term trajectory will largely depend on its ability to maintain margin strength and navigate these challenging conditions successfully.
Ad
First Bancorp Stock: Buy or Sell?! New First Bancorp Analysis from December 8 delivers the answer:
The latest First Bancorp figures speak for themselves: Urgent action needed for First Bancorp investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from December 8.
First Bancorp: Buy or sell? Read more here...
