UMB Financial Corporation announced that its CEO, J Mariner Kemper, sold 15,367 shares of the company’s stock on December 8, 2023. The shares were sold at an average price of $114.58, resulting in a total transaction value of $1,760,750.86. Following this sale, Kemper retains ownership of 1,521,414 shares, which are currently valued at approximately $174.3 million, marking a 1.00% decrease in his overall position.
The transaction was reported in a disclosure filed with the Securities and Exchange Commission, highlighting transparency in the company’s leadership activities.
Current Stock Performance and Financial Overview
During midday trading on the same day, shares of UMB Financial (NASDAQ: UMBF) experienced a slight decline, dropping $0.70 to $114.24. Trading volume reached 472,127 shares, below the average of 598,716 shares. The company’s stock has fluctuated between a 52-week low of $82.00 and a high of $126.14.
Financial ratios indicate a stable position for UMB Financial, with a quick ratio and current ratio both at 0.75, and a low debt-to-equity ratio of 0.07. The firm boasts a market capitalization of approximately $8.68 billion, and a price-to-earnings (P/E) ratio of 12.94, alongside a price-to-earnings-growth (PEG) ratio of 1.15. The stock’s beta stands at 0.78, suggesting lower volatility compared to the broader market.
The company’s latest quarterly earnings report, released on October 28, 2023, showed earnings per share (EPS) of $2.70, surpassing analysts’ expectations of $2.48 by $0.22. Revenue for the quarter reached $678.34 million, exceeding forecasts of $661.60 million. UMB Financial also reported a return on equity of 12.15% and a net margin of 16.01%, with quarterly revenue up 67.0% compared to the same period last year when the EPS was $2.25.
Market Analysts’ Perspectives
Market analysts have recently provided mixed insights regarding UMB Financial’s stock. In a research note dated October 30, 2023, TD Cowen adjusted its target price from $151.00 to $149.00 while maintaining a “buy” rating. Conversely, Morgan Stanley raised their target price from $120.00 to $154.00, categorizing the stock as “overweight.” Wells Fargo & Company also increased its price target from $125.00 to $130.00, assigning an “equal weight” rating.
Raymond James Financial reaffirmed a “strong-buy” rating but lowered its price objective to $135.00, down from $138.00. Piper Sandler maintained an “overweight” rating while adjusting its target price to $145.00, previously $148.00. Currently, the stock holds a consensus rating of “Moderate Buy” with an average price target of $137.20.
Institutional Investor Activity
A significant portion of UMB Financial’s stock is held by institutional investors. Recently, Vanguard Group Inc. increased its stake by 54.0% in the first quarter, now owning 7,332,764 shares valued at $741.34 million. State Street Corp also raised its holdings by 7.9%, acquiring an additional 313,414 shares to reach a total of 4,296,190 shares worth $453.46 million.
Additionally, Wellington Management Group LLP boosted its position by 32.0% during the third quarter, now holding 3,098,798 shares valued at $366.74 million. Other notable changes include Dimensional Fund Advisors LP and American Century Companies Inc., which also expanded their investments in UMB Financial. Currently, institutional investors own approximately 87.78% of the company’s stock.
UMB Financial Corporation continues to be a key player in the banking sector, providing a range of banking services and asset management solutions both in the United States and internationally.
