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KANSAS CITY, Mo.—Tamara Peterman, a director at UMB Financial Corp (NASDAQ:UMBF), has purchased shares in the company, according to a recent SEC filing. On March 3, Peterman acquired 178.67 shares of UMB Financial’s common stock at a price of $110.19 per share, totaling approximately $19,687. This transaction increases her direct ownership to 8,499.64 shares. The purchase comes as the $7.55 billion bank trades at an attractive P/E ratio of 11.7, with the stock down nearly 8% year-to-date. According to InvestingPro analysis, UMB Financial appears fairly valued at current levels.
The purchase reflects continued confidence in UMB Financial, which operates as a national commercial bank based in Kansas City, Missouri. The company has maintained dividend payments for 55 consecutive years and currently offers a 1.54% dividend yield. InvestingPro subscribers can access additional insights, including 8 more key investment tips and a comprehensive Pro Research Report, available for over 1,400 US stocks.
In other recent news, UMB Financial Corporation reported strong financial results for the fourth quarter of 2024, surpassing analyst expectations. The company posted earnings per share (EPS) of $2.49, exceeding the forecasted $2.26, and revenue reached $434.18 million, surpassing the anticipated $411.97 million. This performance was supported by a notable increase in net interest income, which topped $1 billion, reflecting an 8.7% increase quarter-over-quarter. Despite these positive results, Citi analysts downgraded UMB Financial’s stock from Buy to Neutral, citing concerns over the integration and performance of Heartland Financial (NASDAQ:HTLF), which is set to be acquired by UMB Financial by the end of January 2025.
Citi also adjusted its price target for UMB Financial to $127 from $130, reflecting a more conservative outlook. The analysts expressed caution about the acquisition’s potential to dilute UMB Financial’s growth profile and introduce additional operational and credit risks. They noted that the combined entity’s balance sheet might hinder net growth, and the heightened levels of growth and credit risk could dampen valuation expansion until consistent positive trends are demonstrated. In response, Citi revised its EPS estimates for UMB Financial, highlighting the complexities involved in mergers and acquisitions.
UMB Financial remains focused on strategic initiatives, including market expansion and talent acquisition, as it anticipates full integration benefits from the Heartland Financial acquisition by 2026. The company projects an effective tax rate of 20-24% for 2025. Investors are closely monitoring how UMB Financial navigates these challenges in the coming quarters, particularly in terms of the integration process and its impact on the company’s growth trajectory.
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