BlackRock Inc. Buys New Stake in UMB Financial Corporation $UMBF

Key Points

• BlackRock acquired 10.2 million shares of UMB Financial in the second quarter, worth approximately $1.46 billion and representing a 13.45% stake. Institutional investors now own 87.78% of the company.
• Analysts maintain a generally positive outlook, with UMBF receiving a consensus “Moderate Buy” rating and an average price target of $165, above its recent trading price of $145.02.
• UMB Financial exceeded quarterly earnings and revenue expectations, reporting $3.57 in EPS and $778 million in revenue. The company also raised its quarterly dividend to $0.50 per share, for a 1.4% yield.

BlackRock Inc. purchased a new position in UMB Financial Corporation (NASDAQ:UMBF - Free Report) in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 10,215,651 shares of the bank's stock, valued at approximately $1,458,386,000. BlackRock Inc. owned about 13.45% of UMB Financial as of its most recent SEC filing.

A number of other institutional investors also recently bought and sold shares of the stock. Pallas Capital Advisors LLC bought a new stake in UMB Financial in the second quarter worth $200,000. Deutsche Bank AG bought a new stake in shares of UMB Financial during the second quarter worth $13,272,000. Mitsubishi UFJ Asset Management Co. Ltd. bought a new stake in shares of UMB Financial during the second quarter worth $38,000. OneDigital Investment Advisors LLC bought a new stake in shares of UMB Financial during the second quarter worth $395,000. Finally, N.E.W. Advisory Services LLC bought a new stake in shares of UMB Financial during the second quarter worth $545,000. 87.78% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on UMBF. Zacks Research downgraded UMB Financial from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, June 30th. Weiss Ratings restated a "buy (b)" rating on shares of UMB Financial in a report on Friday, July 24th. Morgan Stanley lifted their price objective on UMB Financial from $143.00 to $159.00 and gave the company an "overweight" rating in a report on Monday, June 29th. Royal Bank Of Canada restated an "outperform" rating and issued a $170.00 price objective (up from $168.00) on shares of UMB Financial in a report on Thursday, July 30th. Finally, JPMorgan Chase & Co. started coverage on UMB Financial in a research note on Thursday. They issued an "overweight" rating and a $180.00 target price on the stock. Two investment analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $165.00.

UMB Financial Stock Performance

NASDAQ:UMBF traded down $0.84 during trading hours on Friday, reaching $145.02. The company had a trading volume of 114,305 shares, compared to its average volume of 624,207. UMB Financial Corporation has a 1-year low of $103.38 and a 1-year high of $153.32. The firm has a market cap of $11.01 billion, a PE ratio of 12.07, a price-to-earnings-growth ratio of 0.72 and a beta of 0.77. The business's 50 day moving average price is $143.63 and its 200-day moving average price is $130.28. The company has a debt-to-equity ratio of 0.06, a current ratio of 0.76 and a quick ratio of 0.76.

UMB Financial (NASDAQ:UMBF - Get Free Report) last announced its earnings results on Tuesday, July 28th. The bank reported $3.57 earnings per share for the quarter, topping the consensus estimate of $3.12 by $0.45. The business had revenue of $778.00 million during the quarter, compared to the consensus estimate of $727.63 million. UMB Financial had a return on equity of 13.41% and a net margin of 21.64%.During the same period in the prior year, the company posted $2.96 EPS. Research analysts forecast that UMB Financial Corporation will post 13.48 EPS for the current year.

UMB Financial Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Thursday, September 10th will be given a dividend of $0.50 per share. The ex-dividend date is Thursday, September 10th. This is a positive change from UMB Financial's previous quarterly dividend of $0.43. This represents a $2.00 annualized dividend and a dividend yield of 1.4%. UMB Financial's dividend payout ratio (DPR) is presently 14.32%.

Insider Activity

In related news, insider Phillip James Mason sold 800 shares of the business's stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $147.00, for a total transaction of $117,600.00. Following the completion of the sale, the insider directly owned 8,894 shares in the company, valued at approximately $1,307,418. The trade was a 8.25% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Susan G. Murphy sold 1,377 shares of the company's stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $145.55, for a total value of $200,422.35. Following the completion of the sale, the director owned 10,635 shares of the company's stock, valued at approximately $1,547,924.25. The trade was a 11.46% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 34,171 shares of company stock valued at $4,919,826 in the last three months. Company insiders own 5.33% of the company's stock.

About UMB Financial

UMB Financial Corporation NASDAQ: UMBF is a diversified financial services holding company headquartered in Kansas City, Missouri. Through its principal banking subsidiary, UMB Bank, N.A., the company provides a full suite of commercial and consumer banking services. Key offerings include deposit accounts, commercial and consumer lending, treasury and cash management, as well as online and mobile banking solutions designed to serve businesses, individuals and municipalities.

In addition to its core banking operations, UMB Financial delivers wealth management and trust services, investment advisory, asset management and retirement planning to high-net-worth individuals, families and institutions.

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