BCH drops 2.06% due to sluggish loan expansion and a decline in institutional ownership

BCH, the stock symbol for

, has recently experienced a significant downturn in its market activity. On November 14, 2025, the stock dropped by 5.24% over the previous 24 hours, declined 4.15% in the past week, and saw a sharper 9.81% decrease over the last month. Nevertheless, its performance over the past year remains positive, showing an 11.07% gain. These fluctuations point to a complicated short-term negative outlook for the stock.

The most recent financial results from Banco de Chile indicate a slowdown in growth. The bank’s earnings have been affected by reduced inflation adjustment income and sluggish loan expansion in its main business areas. Operating under several brands, such as Banco Edwards-Citi and Banco CrediChile, the bank earns about 60% of its net interest income from mortgages, unsecured consumer lending, and business loans. Current figures reveal that the bank’s results are starting to mirror broader economic challenges, especially in its lending portfolio and efforts to diversify income streams.

Morningstar analysts have observed the stock’s current price at $36.67 and provided a fair value estimate, while Goldman Sachs has kept a Neutral rating for

as of November 11, 2025. Their analysis places the average one-year price target at $36.93 per share, suggesting a slight 0.70% potential increase. This projection is consistent with the general view among institutions, though underlying market factors indicate persistent caution. Institutional investors have reduced their BCH holdings by 3.53% in the last quarter, with significant reductions from major holders like Baillie Gifford.

Technical signals and institutional actions are under close observation. BCH’s current put/call ratio is 4.11, indicating a pessimistic stance among investors. Shifts in fund allocations and changes in ownership further highlight the shifting sentiment toward the stock. While some funds, such as Bridge Builder International Equity Fund, have increased their stakes, others have scaled back, resulting in a generally cautious market environment.

The technical outlook is also shaped by trends in the broader market and the financial sector. Factoring in Banco de Chile’s fair value assessment and management evaluation, the company seems to be in a period of consolidation rather than significant change. The lack of strong earnings surprises or notable improvements in loan growth continues to weigh on investor confidence.

When considering the possible effects of these factors, technical analysis has been central to the backtesting approach. This strategy emphasizes market responses to specific events, particularly those involving institutional activity and earnings reports.

Backtest Hypothesis

To create a comprehensive event-driven backtest, it is important to assess how particular market events—like earnings announcements and institutional trading—impact stock performance. In this context, the backtest aims to examine how earnings surprises and changes in institutional ownership influence BCH’s price movement. The hypothesis suggests that a reduction in institutional holdings, especially when combined with disappointing earnings, results in a statistically meaningful negative effect on the stock’s price. The analysis will focus on variables such as the size of earnings surprises and the direction and scale of institutional trades to evaluate their impact on price fluctuations and market direction.