UMB Financial Corporation’s CEO, J Mariner Kemper, divested 15,367 shares of company stock on December 8, 2023, in a transaction valued at approximately $1.76 million. The shares were sold at an average price of $114.58, resulting in a reduction of his holdings by 1.00%. Following the sale, Kemper retains ownership of 1,521,414 shares, which are currently valued at over $174.3 million.
This sale was disclosed in a filing with the Securities and Exchange Commission, which allows investors and analysts to monitor insider trading activities. The timing and volume of such transactions often raise interest among market observers, particularly regarding the executives’ confidence in their company’s future.
Market Reaction and Financial Performance
On the same day as the sale, shares of UMB Financial (NASDAQ: UMBF) experienced a slight decline, trading down $0.70 to $114.24 during mid-day trading. Approximately 472,127 shares changed hands, below the average volume of 598,716 shares. The stock has seen a 52-week low of $82.00 and a 52-week high of $126.14.
In its latest quarterly earnings report released on October 28, UMB Financial reported earnings per share of $2.70, surpassing analysts’ expectations of $2.48 by $0.22. The bank’s revenue reached $678.34 million, exceeding forecasts of $661.60 million. Notably, this represents an impressive revenue increase of 67.0% compared to the same quarter the previous year, when the company recorded earnings per share of $2.25.
Analysts predict that UMB Financial will achieve an earnings per share of $9.66 for the current year, reflecting strong growth momentum.
Analyst Ratings and Institutional Holdings
Recent research reports have highlighted UMB Financial, with various analysts adjusting their price targets. TD Cowen lowered its target price from $151.00 to $149.00, maintaining a “buy” rating. Conversely, Morgan Stanley raised its target from $120.00 to $154.00, assigning an “overweight” rating to the stock. Other notable adjustments include Wells Fargo, which increased its price target from $125.00 to $130.00, and Raymond James Financial, which reaffirmed a “strong-buy” rating with a revised target of $135.00.
Currently, one research analyst rates the stock as a Strong Buy, while nine others have issued a Buy rating and three have assigned a Hold rating. According to data from MarketBeat.com, UMB Financial has an average rating of “Moderate Buy” with a consensus price target of $137.20.
Institutional investors continue to show strong interest in UMB Financial. Recently, Vanguard Group Inc. increased its stake by 54.0%, now holding over 7.3 million shares valued at approximately $741.3 million. Other institutional investors, including State Street Corp and Wellington Management Group LLP, have also raised their holdings, indicating confidence in the company’s future prospects. Currently, 87.78% of UMB Financial’s shares are owned by institutional investors and hedge funds.
As UMB Financial continues to navigate a dynamic financial landscape, the recent insider selling and analyst upgrades reflect the complexities of investor sentiment and market expectations.
