Pacer Advisors Inc. significantly increased its investment in UMB Financial Corporation (NASDAQ: UMBF) by a remarkable 354.1% during the third quarter of 2023, according to a recent filing with the U.S. Securities and Exchange Commission (SEC). The institutional investor now holds 9,390 shares of UMB Financial, having acquired an additional 7,322 shares during this period. As of the end of the third quarter, Pacer Advisors’ holdings were valued at approximately $1,111,000.
Several other institutional investors have also adjusted their positions in UMB Financial. For instance, McIlrath & Eck LLC initiated a new stake valued at $29,000 during the first quarter. Farther Finance Advisors LLC increased its holdings by 219.2% in the third quarter, bringing its total to 249 shares, now worth $29,000 after acquiring an additional 171 shares. Northwestern Mutual Wealth Management Co. raised its stake by 143.0% in the first quarter, owning 362 shares valued at $37,000 following a purchase of 213 shares. EverSource Wealth Advisors LLC expanded its investment by 193.5%, owning 405 shares worth $43,000 after acquiring 267 shares. Additionally, MAI Capital Management increased its stake by 14.7% in the first quarter, now holding 771 shares valued at $78,000. Notably, institutional investors and hedge funds collectively own 87.78% of UMB Financial’s stock.
In related company news, insider Nikki Farentino Newton sold 1,300 shares of UMB Financial on November 4, 2023, at an average price of $106.09, totaling $137,917. Following this transaction, Newton retains 13,667 shares, valued at approximately $1,449,932.03, reflecting an 8.69% decrease in her position. Additionally, CEO J Mariner Kemper sold 15,367 shares on December 8, 2023, for $1,760,750.86, leaving him with 1,521,414 shares, worth around $174,323,616.12, marking a 1.00% reduction in ownership. In total, insiders have sold 17,127 shares valued at $1,949,594 over the past 90 days, with insiders owning 5.45% of the company’s stock.
Recent Performance and Dividend Announcement
UMB Financial recently reported its earnings for the third quarter, showing $2.70 earnings per share (EPS), exceeding analysts’ expectations of $2.48 by $0.22. The bank’s revenue reached $678.34 million, surpassing estimates of $661.60 million. The company achieved a net margin of 16.01% and a return on equity of 12.15%, with revenues up 67.0% compared to the same quarter in the previous year. Analysts project UMB Financial will post an EPS of 9.66 for the current fiscal year.
The firm also announced a quarterly dividend of $0.43 per share, set to be paid on January 2, 2024, to investors on record as of December 10, 2023. This dividend represents an increase from the previous amount of $0.40, resulting in an annualized dividend of $1.72 and a dividend yield of 1.5%. Currently, UMB Financial’s payout ratio stands at 19.48%.
Analysts’ Outlook and Future Projections
Recent analyses from various equity research analysts present a generally positive outlook for UMB Financial. Barclays set a price target of $155.00 and assigned an “overweight” rating to the stock. Cowen initiated coverage with a “buy” rating, while Truist Financial raised its target price from $130.00 to $144.00. TD Cowen adjusted its price target from $151.00 to $149.00, maintaining a “buy” rating. Raymond James Financial reaffirmed a “strong-buy” rating with a target of $135.00, down from a previous $138.00.
Currently, one analyst has rated UMB Financial with a “strong buy,” ten have issued “buy” ratings, and two have given a “hold” rating. According to data from MarketBeat.com, UMB Financial has an average rating of “moderate buy” with a consensus target price of $137.20.
UMB Financial Corporation, headquartered in Kansas City, Missouri, operates through its principal banking subsidiary, UMB Bank, N.A., offering a comprehensive range of commercial and consumer banking services. The company also provides wealth management, investment advisory, and retirement planning services, catering to high-net-worth individuals, families, and institutions.
