SAN ANTONIO—Phillip D. Green, Chairman and CEO of Cullen/Frost Bankers, Inc. (NYSE:CFR), recently executed a series of transactions involving the company's common stock. According to a Form 4 filing with the Securities and Exchange Commission, Green sold shares valued at approximately $4.75 million.
On November 19 and 20, Green sold a total of 34,505 shares at prices ranging from $137.29 to $137.96 per share. The total value of these sales amounted to $4,746,811. Following these transactions, Green holds 92,423 shares directly.
In related activity, Green acquired 34,505 shares through the exercise of stock options at a price of $65.11 per share on November 19 and 20. The total value of these acquisitions was $2,246,620. Additionally, a transfer of 1,825 shares occurred on November 21, reflecting a non-monetary transaction.
These transactions are part of Green's ongoing management of his holdings in the company, where he has served as Chairman and CEO.
In other recent news, Cullen/Frost Bankers, Inc. reported a dip in its third-quarter earnings for 2024, with earnings decreasing from $154 million, or $2.38 per share, to $144.8 million, or $2.24 per share, year-over-year. Despite this, the company remains optimistic about future growth, particularly in the Texas markets. Expansion efforts in Houston, Dallas, and Austin have exceeded the company's goals, with significant achievements in loan and deposit targets.
The company's commercial loan balances and consumer loans have shown growth, while credit quality has improved. Average deposits have slightly decreased, but average loans have increased by 11.8%. Cullen/Frost anticipates two rate cuts by the Federal Reserve and projects an increase in net interest income and loan growth.
Looking forward, the company expects net interest income growth to be between 2% to 3% for 2024, with loan growth anticipated in the low double digits. Noninterest income growth is estimated at 4% to 5%, while noninterest expense growth is expected to be between 6% to 6.5% for the full year. These recent developments underscore Cullen/Frost's resilience and strategic investments in its expansion efforts and customer acquisition strategies.
InvestingPro Insights
Cullen/Frost Bankers, Inc. (NYSE:CFR) has been demonstrating strong financial performance and shareholder value, aligning with CEO Phillip D. Green's recent stock transactions. According to InvestingPro data, the company's market capitalization stands at $8.97 billion, with a P/E ratio of 17.3, indicating a reasonable valuation relative to earnings.
InvestingPro Tips highlight that Cullen/Frost has raised its dividend for 32 consecutive years, showcasing a commitment to returning value to shareholders. This consistent dividend growth, coupled with a current dividend yield of 2.76%, may be attractive to income-focused investors.
The company's stock has shown impressive momentum, with a 14.39% price return over the last month and a substantial 32.92% return over the past six months. This strong performance is reflected in the stock trading near its 52-week high, at 96.3% of that level.
Cullen/Frost's financial health appears robust, with an operating income margin of 36.71% for the last twelve months as of Q3 2024. This solid profitability metric supports the company's ability to maintain its dividend payments and potentially fund future growth initiatives.
It's worth noting that while the company benefits from strong returns and dividend history, an InvestingPro Tip cautions that Cullen/Frost suffers from weak gross profit margins. This factor may be worth monitoring for its potential impact on long-term profitability.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for Cullen/Frost Bankers, providing a deeper dive into the company's financial health and market position.
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