Bobby Berman, the GEVP of Research & Strategy at Cullen/Frost Bankers, Inc. (NYSE:CFR), recently sold a portion of the company's stock. According to a recent SEC filing, Berman sold 3,506 shares of common stock on November 1 at a price of $126.31 per share, amounting to a total transaction value of $442,842. Following this sale, Berman holds 26,661 shares directly and another 17,774 shares indirectly through a 401(k) plan. This transaction is part of Berman's ongoing management of his equity holdings in the company.
In other recent news, Cullen/Frost Bankers, Inc. reported a decrease in its third quarter earnings for 2024. The company announced earnings of $144.8 million, or $2.24 per share, compared to $154 million, or $2.38 per share, in the same quarter of the previous year. Despite this, Cullen/Frost remains optimistic about future growth, particularly in the Texas markets.
The bank also reported a year-over-year decline in return on average assets and common equity, while average deposits slightly decreased. However, average loans increased by 11.8% and the company's expansion in Houston, Dallas, and Austin exceeded goals, with significant achievements in loan and deposit targets.
In terms of future expectations, Cullen/Frost anticipates two rate cuts by the Fed and projects an increase in net interest income and loan growth. Despite a projected slight decline in average deposits, noninterest income growth is estimated at 4% to 5%. These recent developments suggest a focus on strategic investments and effective expense management as the company moves forward.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on Cullen/Frost Bankers' financial position and market performance. The company's market capitalization stands at $8 billion, with a P/E ratio of 15.44, indicating a relatively moderate valuation compared to industry peers.
Cullen/Frost Bankers has demonstrated strong shareholder value, as evidenced by two key InvestingPro Tips. The company has raised its dividend for 32 consecutive years and maintained dividend payments for the same period. This consistent dividend policy aligns with Bobby Berman's recent stock sale, suggesting confidence in the company's financial stability and commitment to shareholder returns.
The bank's stock has shown robust performance, with a 16.66% price total return over the past three months and a 35.12% return over the last year. This strong momentum is reflected in another InvestingPro Tip, which highlights the stock's strong return over the last three months.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for Cullen/Frost Bankers, providing deeper insights into the company's financial health and market position.
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