As the first quarter of the year comes to a close, investment management firm Dimensional Fund Advisors LP has upped its stake in Cullen/Frost Bankers, Inc. (NYSE:CFR) by 1.3%. According to reports, the fund purchased an additional 6,518 shares during this period, making their total holding in the company valued at over $68 million.
This news comes after Cullen/Frost Bankers released their quarterly earnings data last week, which showcased impressive growth when compared to the same period last year. The bank reported earnings per share of $2.70 for Q1, up from $1.51 earned in 2016’s first quarter. Furthermore, revenue grew by an estimated 44%, with figures reaching $505 million.
These positive figures have not gone unnoticed by insiders either, with EVPs Bobby Berman and Candace K. Wolfshohl purchasing chunks of CFR stock during March and May respectively.
Taken together, these developments paint a very promising picture for Cullen/Frost Bankers’ future performance and potential attractiveness as an investment opportunity. With insiders bullish on CFR’s prospects and key financial indicators pointing towards continued expansion throughout 2017, it will be interesting to see how this story unfolds in the coming months.
Institutional Investors Increase Holdings in Cullen/Frost Bankers Despite Volatility in Stock Price
Cullen/Frost Bankers, a Texas-based financial services company, has recently seen a significant increase in institutional investor holdings. Capital Research Global Investors, for instance, increased their holdings by 39.1% in the first quarter and now owns over 2 million shares of the bank’s stock worth over $333 million. Cullen Frost Bankers Inc. and State Street Corp also significantly increased their holdings during the last quarter. In total, institutional investors own over 81% of the stock.
Despite this strong showing from institutional investors, Cullen/Frost Bankers’ stock price has had its ups and downs in recent months. The company’s stock opened at $104.60 last Friday and currently has a market cap of $6.74 billion with a price-to-earnings ratio of 10.45.
Candace K. Wolfshohl and Bobby Berman, both EVPs at the company, have made significant purchases of Cullen/Frost Bankers’ stock in recent months as well. In March, Wolfshohl purchased 700 shares at an average price of $108.28 per share while Berman acquired 1,500 shares in May for $95.25 per share.
The company also recently declared a quarterly dividend with a payout ratio of 34.77%. Stockholders of record on May 31st will receive a dividend payment of $0.87 per share on June 15th.
Several research reports have been issued on Cullen/Frost Bankers as well, including a “sell” rating from UBS Group in March and a downgrade from Morgan Stanley in May from “overweight” to “equal weight.” Despite these mixed reviews from analysts and fluctuating stock prices, many institutional investors continue to show confidence in the bank’s future success by increasing their holdings in recent quarters.
Overall, it remains to be seen how Cullen/Frost Bankers’ stock will continue to perform in the coming months. However, with significant institutional investor support and recent stock purchases from top executives, many remain optimistic about the bank’s future prospects.
Discussion about this post