Cullen Frost Cuts Booking Stake by 2%, Global Assets Advisory Buys $734K
Cullen Frost Bankers reduced its Q3 Booking stake by 2.0%, selling 153 shares to hold 7,390 shares valued at $39.9M, while Global Assets Advisory LLC acquired 136 shares worth $734K. Booking is the likeliest of three high-priced stocks to declare a forward split following its 2003 reverse split.
1. Significant Institutional Position Changes
During the third quarter, Cullen Frost Bankers Inc. reduced its stake in Booking Holdings Inc. by 2.0%, selling 153 shares and ending the period with 7,390 shares valued at approximately 39.9 million. Several other institutions adjusted their holdings in the same period: GRIMES & Co. Wealth Management increased its position by 339.0% to 180 shares (worth roughly 974,000); Y Intercept Hong Kong Ltd boosted its second-quarter stake by 15.6% to 511 shares (valued at 2.96 million); Vontobel Holding Ltd raised its holdings by 18.6% to 75,534 shares (approximately 437.3 million); Panagora Asset Management Inc. added 67.3% more to reach 30,210 shares (174.9 million); and Covey Capital Advisors LLC modestly increased its position by 1.0% to 1,117 shares (6.47 million). Hedge funds and other institutional investors collectively own 92.42% of the company’s stock.
2. Third-Quarter Earnings Outperform Estimates and Dividend Increase
On October 28th, Booking reported third-quarter earnings per share of 99.50, surpassing the consensus estimate of 95.56 by 3.94. Revenues reached 9.01 billion, above forecasts of 8.71 billion and marking a 12.7% year-over-year increase. Net margin stood at 19.37%, while return on equity was negative 134.86% due to a tax valuation adjustment. The company declared a quarterly dividend of 9.60 per share, paid December 31st to shareholders of record as of December 5th, reflecting an annualized payout of 38.40 and a yield near 0.8% with a payout ratio of 24.96%. Analysts collectively project full-year EPS of 209.92 for the current fiscal year.
3. Insider Sales and Analyst Rating Updates
Chief Executive Officer Glenn D. Fogel sold 953 shares on January 15th for total proceeds of approximately 4.94 million, reducing his stake by 4.63% to 19,615 shares (valued near 101.6 million). Director Vanessa Ames Wittman sold 15 shares on the same date for roughly 77,867, trimming her holdings by 2.14% to 687 shares (3.57 million). Company insiders have sold 3,324 shares worth 17.19 million over the past 90 days; insiders now own 0.16% of outstanding shares. Meanwhile, research firms have raised target prices: B. Riley from 6,700 to 6,800 with a Buy rating; HSBC from 7,447 to 7,656 with a Buy rating; Seaport Research from 6,030 to 6,260 with a Buy rating; and Deutsche Bank from 6,723 to 6,790 with a Buy rating. The consensus rating remains Moderate Buy with an average target near 6,210.