Banks Say Cut BCH. Institutional Buyers Say Otherwise

Institutional investors have increased their holdings in Banco De Chile (NYSE:BCH) during the second quarter of 2026, despite the stock receiving a consensus rating of "Reduce" from brokerages. The updated stake-building activity includes several notable entities, such as Creative Planning, Arrowstreet Capital Limited Partnership, and Guggenheim Capital LLC, all of whom have either added new positions or significantly increased their existing shares.

Creative Planning raised its stake in Banco De Chile by 24.8% during the quarter, now holding 16,517 shares valued at $502,000. Arrowstreet Capital Limited Partnership acquired a new position of approximately $1.266 million. Meanwhile, Guggenheim Capital increased its holdings by 6.0%, holding 76,642 shares valued at $2.331 million. EverSource Wealth Advisors LLC also made a substantial investment, growing its stake by 161.6% to 1,504 shares, valued at $46,000. These actions reflect continued institutional confidence in the bank despite mixed market ratings.

The bank's earnings report for the quarter, issued on January 29, showed earnings per share (EPS) of $0.58, falling short of analysts' estimates by $0.02. Quarterly revenue came in at $831.63 million, below the expected $878.92 million. Despite the earnings miss, the company reported a net margin of 33.09% and a return on equity of 23.94%. Analysts project an EPS of 2.31 for the current fiscal year, signaling a potential for earnings recovery in the near term.

Banco De Chile, a leading financial institution headquartered in Santiago, operates with a debt-to-equity ratio of 2.09 and maintains a market capitalization of $19.21 billion. Its stock has a price-to-earnings ratio of 13.63 and a beta of 0.20, indicating relatively low volatility compared to broader market indices. Institutional investors collectively own 1.24% of the bank's outstanding shares.

Despite the bearish rating from brokerages, recent institutional buying suggests a cautious optimism about the bank’s long-term performance. The stock's current trajectory, supported by both quarterly earnings and strategic investment activity, may signal a stabilization in market sentiment toward Banco De Chile.