On August 25, 2023, J Kemper, Chairman and CEO of UMB Financial Corp (UMBF, Financial), sold 4,280 shares of the company. This move is part of a broader trend of insider selling at UMB Financial Corp, which we will explore in this article.
J Kemper has been with UMB Financial Corp for several years, leading the company in its mission to deliver comprehensive banking, asset services, institutional investment management, and wealth management services. Under his leadership, UMB Financial Corp has grown into a company with a market cap of $3.101 billion.
UMB Financial Corp is a financial services company headquartered in Kansas City, Missouri. It offers a wide range of banking and other financial services to its customers, both commercial and retail. The company operates in a highly competitive industry, with its performance and stock price heavily influenced by economic conditions, interest rates, and regulatory changes.
Over the past year, J Kemper has sold a total of 66,603 shares and has not purchased any shares. This trend is mirrored in the broader insider transaction history of UMB Financial Corp, with 29 insider sells and 14 insider buys over the past year.
The insider's recent sell comes at a time when UMB Financial Corp's stock is trading at $63.76, giving the company a market cap of $3.101 billion. The stock's price-earnings ratio is 8.39, slightly higher than the industry median of 8.38, but lower than the company's historical median price-earnings ratio.
Despite the insider's sell, UMB Financial Corp's stock appears to be significantly undervalued based on its GuruFocus Value of $95.13, with a price-to-GF-Value ratio of 0.67.
The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples that the stock has traded at, a GuruFocus adjustment factor based on the company’s past returns and growth, and future estimates of business performance from Morningstar analysts.
In conclusion, while the insider's recent sell may raise some eyebrows, it is important to consider the broader context. The stock appears to be significantly undervalued, and the company's performance and future prospects remain strong. As always, potential investors should conduct their own research and consider multiple factors before making investment decisions.
