UMB Financial (NASDAQ:UMBF) Downgraded by Zacks Investment Research to Sell

Zacks Investment Research lowered shares of UMB Financial (NASDAQ:UMBF) from a hold rating to a sell rating in a research report report published on Sunday, Zacks.com reports. They currently have $71.00 price target on the bank’s stock.

According to Zacks, “UMB Financial displays a decent earnings surprise history, having beaten the Zacks Consensus Estimate in two of the trailing four quarters and in-line results in one. Third-quarter results reflected elevated revenues, reduction in net interest margin, along with higher provisions and expenses. The company remains committed to drive operating efficiency through several strategic objectives, including improvement in revenues and capital management. Also, a strong capital position keeps it well poised to undertake any opportunistic expansions in the quarters ahead. Moreover, rise in loans and deposit balance is commendable. However, shares of UMB Financial have underperformed the industry, over the past three months. Also, persistently rising costs and significant exposure to commercial loans, along with intense competition, are key headwinds.”

A number of other equities research analysts also recently issued reports on the stock. ValuEngine downgraded shares of UMB Financial from a hold rating to a sell rating in a research report on Friday, October 25th. BidaskClub raised shares of UMB Financial from a hold rating to a buy rating in a research report on Thursday, October 24th. Finally, Stephens reaffirmed a buy rating and issued a $75.00 price objective on shares of UMB Financial in a research report on Monday, September 16th. Two equities research analysts have rated the stock with a sell rating, one has assigned a hold rating and three have given a buy rating to the company. The stock currently has a consensus rating of Hold and a consensus target price of $72.33.

NASDAQ:UMBF opened at $67.11 on Friday. The company has a debt-to-equity ratio of 0.03, a current ratio of 0.68 and a quick ratio of 0.68. The firm has a 50-day moving average of $64.91 and a 200-day moving average of $65.09. The company has a market cap of $3.24 billion, a PE ratio of 16.65, a PEG ratio of 2.69 and a beta of 0.91. UMB Financial has a one year low of $57.90 and a one year high of $71.97.

UMB Financial (NASDAQ:UMBF) last issued its quarterly earnings data on Tuesday, October 29th. The bank reported $1.27 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $1.17 by $0.10. UMB Financial had a net margin of 16.06% and a return on equity of 8.55%. The business had revenue of $271.90 million during the quarter, compared to the consensus estimate of $276.93 million. During the same period in the prior year, the firm posted $1.16 EPS. On average, equities research analysts expect that UMB Financial will post 4.73 earnings per share for the current fiscal year.

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, January 2nd. Shareholders of record on Tuesday, December 10th will be given a $0.31 dividend. This represents a $1.24 dividend on an annualized basis and a yield of 1.85%. This is an increase from UMB Financial’s previous quarterly dividend of $0.30. The ex-dividend date of this dividend is Monday, December 9th. UMB Financial’s dividend payout ratio is presently 29.78%.

In other news, CEO J Mariner Kemper sold 6,600 shares of the stock in a transaction that occurred on Wednesday, November 6th. The shares were sold at an average price of $66.95, for a total transaction of $441,870.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Kris A. Robbins sold 800 shares of the stock in a transaction that occurred on Monday, September 9th. The shares were sold at an average price of $62.57, for a total transaction of $50,056.00. Following the transaction, the director now directly owns 4,796 shares of the company’s stock, valued at $300,085.72. The disclosure for this sale can be found here. Insiders sold a total of 13,172 shares of company stock valued at $872,516 over the last ninety days. 10.45% of the stock is currently owned by insiders.

Several institutional investors have recently added to or reduced their stakes in UMBF. Diversified Trust Co grew its position in shares of UMB Financial by 8.3% during the 2nd quarter. Diversified Trust Co now owns 6,200 shares of the bank’s stock valued at $408,000 after acquiring an additional 475 shares during the period. Altfest L J & Co. Inc. purchased a new stake in shares of UMB Financial during the 2nd quarter valued at approximately $283,000. Oregon Public Employees Retirement Fund lifted its stake in shares of UMB Financial by 1.4% during the 2nd quarter. Oregon Public Employees Retirement Fund now owns 18,100 shares of the bank’s stock valued at $1,191,000 after buying an additional 252 shares in the last quarter. Arizona State Retirement System lifted its stake in shares of UMB Financial by 1.1% during the 2nd quarter. Arizona State Retirement System now owns 32,051 shares of the bank’s stock valued at $2,110,000 after buying an additional 350 shares in the last quarter. Finally, SG Americas Securities LLC lifted its stake in shares of UMB Financial by 10.7% during the 2nd quarter. SG Americas Securities LLC now owns 33,661 shares of the bank’s stock valued at $2,216,000 after buying an additional 3,249 shares in the last quarter. 85.53% of the stock is owned by hedge funds and other institutional investors.

UMB Financial Company Profile

UMB Financial Corporation operates as the bank holding company for the UMB Bank that provides various banking and other financial services. It operates through four segments: Commercial Banking, Institutional Banking, Personal Banking, and Healthcare Services. The Commercial Banking segment provides commercial loans, commercial credit cards, letters of credit, loan syndication services, consultative services, and various financial options; capital markets services, including asset-based financing, asset securitization, equity and mezzanine financing, factoring, and private and public placement of senior debt, as well as merger and acquisition consulting; and depository, account reconciliation, electronic fund transfer, controlled disbursements, lockbox, and remote deposit capture services.

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