Oppenheimer Asset Management Reduces Stake in UMB Financial Corporation

Oppenheimer Asset Management Inc. has decreased its stake in UMB Financial Corporation (NASDAQ: UMBF) by 1.1% during the second quarter of 2023, as revealed in the firm’s recent filing with the Securities and Exchange Commission (SEC). Following the sale of 478 shares, Oppenheimer’s holdings now amount to 42,694 shares, valued at approximately $4.49 million. This reduction comes amid a backdrop of fluctuating investments in UMB Financial, with several institutional investors adjusting their positions.

In the first quarter of 2023, Vanguard Group Inc. significantly increased its holdings in UMB Financial by 54.0%, acquiring an additional 2,570,283 shares, bringing its total to 7,332,764 shares valued at around $741.34 million. Other notable transactions include Earnest Partners LLC purchasing a new stake worth about $144.35 million and Dimensional Fund Advisors LP boosting its holdings by 78.3%, now owning 2,700,678 shares valued at $273.03 million. Current data indicates that institutional investors control 87.78% of UMB Financial’s shares.

Analysts Adjust Price Targets

Recent research reports have led to adjustments in price targets for UMB Financial. Truist Financial raised its price objective from $130.00 to $144.00, maintaining a “buy” rating in a report dated September 8, 2023. Morgan Stanley also increased its target price from $120.00 to $154.00, issuing an “overweight” rating on September 29, 2023. Similarly, Barclays set a target price of $155.00 with an “overweight” rating, while Cowen began coverage with a “buy” rating. Hovde Group followed suit, offering an “outperform” rating. Currently, one analyst rates the stock as a Strong Buy, nine as Buy, and three as Hold, resulting in a consensus rating of “Moderate Buy” with an average target price of $138.00, according to MarketBeat.com.

Insider Transactions and Company Performance

Recent insider activity reveals a notable reduction in holdings by several executives. Phillip James Mason sold 750 shares on August 25, 2023, for a total of $90,727.50, marking a 7.84% decrease in his position. Following the sale, Mason held 8,815 shares valued at approximately $1.07 million. Similarly, Stacy H. King sold 1,500 shares on August 22, 2023, totaling $178,320.00 and reducing her stake by 13.67%.

In the last quarter, insiders acquired 678 shares worth $75,948 while selling 20,845 shares valued at $2.44 million. Insiders currently own 5.45% of UMB Financial’s stock.

UMB Financial’s shares opened at $112.29 on a recent trading day, with a market capitalization of $8.53 billion. The company’s price-to-earnings (PE) ratio stands at 12.91, with a price-to-earnings-growth (PEG) ratio of 1.15. The stock has recorded a 50-day moving average price of $118.51 and a 200-day moving average price of $109.38. Over the past year, UMB Financial’s shares have ranged from a low of $82.00 to a high of $129.94.

The company recently reported its quarterly earnings on October 28, 2023, revealing earnings per share (EPS) of $2.70, surpassing analysts’ expectations of $2.48 by $0.22. UMB Financial generated revenue of $678.34 million, exceeding the consensus estimate of $661.60 million and reflecting a 67.0% increase year-over-year. The company had a return on equity of 12.27% and a net margin of 15.42%.

As UMB Financial continues to navigate the financial landscape, the adjustments in institutional stakes and positive earnings performance signal a dynamic environment for investors. For those interested in tracking hedge fund activities related to UMB Financial, updated information is available through various financial platforms.