UMB Financial reports $29.4 million gain from Voyager Technologies IPO

KANSAS CITY - UMB Financial Corporation (NASDAQ:UMBF), an $8.3 billion market cap financial institution currently trading near its InvestingPro Fair Value, has realized a pre-tax gain of $29.4 million from its investment in Voyager Technologies, Inc. (NYSE:VOYG) following the latter’s initial public offering in June, the company announced Tuesday.

The gain represents a 5.8 multiple on UMB’s $6 million investment made over the past five years, aligning with the company’s track record of strong returns - one of several positive indicators noted in InvestingPro’s comprehensive analysis, which includes 8 additional key insights. The investment will be revalued quarterly based on Voyager’s closing market price and recognized in fee income, according to a company press release.

"The success we are able to realize through strategic investments is a testament to our Private Investments team and the entrepreneurial opportunities that our diverse business model enables," said Mariner Kemper, chairman and CEO of UMB Financial Corporation. The company has maintained dividend payments for 55 consecutive years and currently offers a 1.47% yield.

UMB’s Private Investments division provides minority equity or subordinated debt to small private businesses, typically investing between $2 million and $8 million in companies operating in manufacturing, distribution, business services, or consumer products sectors. The division has invested more than $200 million across over 50 businesses to date.

The company plans to discuss this investment and its second quarter earnings results during an investor conference call scheduled for Wednesday, July 30.

UMB Financial Corporation operates branches across 13 states and serves business clients nationwide and institutional clients internationally.

In other recent news, UMB Financial Corporation has completed the redemption of all outstanding shares of its Series A preferred stock. This development was accompanied by the filing of a Termination of Certificate of Designation with the Missouri Secretary of State, effectively removing matters related to the Series A Preferred Stock from its articles of incorporation. Additionally, UMB Financial has launched a public offering of depositary shares for its Series B Preferred Stock, aiming to raise funds for general corporate purposes. The new Series B stock will have a fixed interest rate period until July 15, 2030, after which the interest rate will reset every five years.

In terms of analyst activity, Piper Sandler has lowered its price target for UMB Financial to $135 from $137, citing implications from the recent preferred stock raise but maintaining an Overweight rating. Keefe, Bruyette & Woods reaffirmed their Outperform rating, noting a slight impact on earnings per share due to adjustments related to the Series B offering. Raymond James also maintained a Strong Buy rating with a $135 price target, highlighting the strategic use of proceeds from the Series B offering to redeem securities set to reprice at higher rates. These recent developments indicate ongoing strategic financial adjustments by UMB Financial.

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