BCH +5.15% on Institutional Buy-In, Analysts Adjust Targets

Institutional investors have shown renewed interest in Banco de Chile (BCH), with Campbell & CO Investment Adviser LLC significantly increasing its stake in the second quarter of 2025. The firm boosted its holdings by 185.3%, acquiring 16,948 additional shares to bring its total position to 26,095 shares, valued at approximately $794,000 as of its latest SEC filing. This move aligns with broader institutional buying trends, as multiple other investment firms also raised their positions in the Chilean bank.

Among the other institutional investors, Yousif Capital Management LLC and Parallel Advisors LLC added 375 and 428 shares, respectively, during the quarter. Brooklyn Investment Group and Hantz Financial Services Inc. also made significant purchases, growing their stakes by 823.3% and 276.2%, respectively. Farther Finance Advisors LLC saw the largest percentage increase at 1,355.4%, acquiring 3,009 additional shares. These collective actions have raised institutional ownership in BCH to approximately 1.24% of the company's total shares outstanding.

BCH recently reported Q3 results that fell short of expectations. The bank posted earnings per share of $0.60, below the $0.62 consensus estimate, and revenue of $675.3 million, compared to the expected $832.0 million. Despite these figures, the bank continues to demonstrate strong profitability, with a return on equity of 23.25% and a net margin of 32.87%. The stock currently trades at a P/E ratio of 13.06, near its recent 52-week high.

Analysts remain cautiously optimistic about the stock’s potential. The average price target stands at $34, with Goldman Sachs and JPMorgan both raising their targets to $35 and $33, respectively. Zacks Research upgraded its rating to “Strong Buy,” while other firms remain neutral or hold. This mixed but generally positive sentiment reflects confidence in BCH’s long-term fundamentals, even as short-term results have disappointed.

BCH operates through a wide range of financial services in Chile, including retail banking, credit, and insurance services. The company’s strong balance sheet and consistent profitability support its current valuation, though its recent earnings shortfall has weighed on near-term performance. Institutional buying, however, suggests a growing belief in its strategic positioning and operational resilience.

As the market continues to digest these developments, investors are closely watching for further guidance from institutional investors and analyst commentary. The stock's year-to-date performance of 16.99% indicates a strong underlying trend, despite a 5.01% decline over the past 30 days.