MIAMI LAKES, FL—Thomas M. Cornish, the Chief Operating Officer of BankUnited, Inc. (NYSE:BKU), recently sold a substantial amount of the company's stock. According to a filing with the Securities and Exchange Commission, Cornish sold 10,778 shares of BankUnited common stock on November 8, 2024. The shares were sold at prices ranging from $39.00 to $39.24, with a weighted average sale price of $39.1052 per share. The total value of the transaction amounted to $421,475.
Following this sale, Cornish retains ownership of 100,000 shares of BankUnited stock. This transaction was executed without any equity swap involvement and represents a direct ownership stake in the company.
In other recent news, BankUnited Inc (NYSE:BKU). reported a promising financial performance for the third quarter of 2024, registering a net income of $61.5 million or $0.81 per share, surpassing the consensus estimate of $0.74. This is an upward trend from $0.72 in the previous quarter and $0.63 a year ago. Also, the company's net interest margin (NIM) saw a year-over-year rise of 9% to 2.78%, courtesy of a decrease in deposit costs.
Simultaneously, recent developments highlight a shift in hedge fund investments. According to a Goldman Sachs note, following the U.S. presidential election, hedge funds have shown a distinct preference for bank stocks, while showing less interest in renewable energy companies. Financial stocks, particularly banks, have been the primary target of hedge fund investments, experiencing the highest buying activity in three years.
On the contrary, utilities companies experienced net selling for the first time in four weeks, primarily due to an increase in short sales. Independent (LON:IOG) power and renewable electricity producers were the most heavily sold within this category. These are recent developments in the investment landscape, reflecting the changing preferences of hedge funds.
InvestingPro Insights
As Thomas M. Cornish reduces his stake in BankUnited, Inc. (NYSE:BKU), investors may find it valuable to consider additional financial metrics and expert insights. According to InvestingPro data, BankUnited currently boasts a market capitalization of $2.98 billion and a price-to-earnings ratio of 16.16, suggesting a moderate valuation relative to earnings.
BankUnited has demonstrated strong performance recently, with InvestingPro Tips highlighting a high return over the last year and the stock trading near its 52-week high. The company's share price has shown remarkable momentum, with a 40.73% total return over the past six months and an impressive 82.49% return over the last year.
Despite Cornish's recent stock sale, BankUnited maintains a solid dividend track record. An InvestingPro Tip notes that the company has raised its dividend for 5 consecutive years and has maintained dividend payments for 14 consecutive years. Currently, BankUnited offers a dividend yield of 2.92%, with a 7.41% dividend growth rate over the last twelve months.
While these metrics paint a positive picture, it's worth noting that 8 analysts have revised their earnings downwards for the upcoming period, according to another InvestingPro Tip. This could signal potential headwinds that investors may want to monitor closely.
For a more comprehensive analysis, InvestingPro offers additional tips and insights beyond those mentioned here. In fact, there are 9 more InvestingPro Tips available for BankUnited, providing a deeper understanding of the company's financial health and market position.
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