Envestnet Asset Management Inc. has raised its stake in Sumitomo Mitsui Financial Group Inc. (NYSE: SMFG) by 19.7% during the second quarter of 2023. According to a recent filing with the Securities and Exchange Commission (SEC), the institutional investor now holds 2,302,411 shares of the bank’s stock, having purchased an additional 378,909 shares in the period.
As of the latest filing, Envestnet’s holdings in Sumitomo Mitsui Financial Group are valued at approximately $34.79 million. This increase reflects a broader trend among institutional investors, as several hedge funds have adjusted their positions in the financial group.
In the first quarter of 2023, Goldman Sachs Group Inc. raised its stake in Sumitomo Mitsui Financial Group by 0.5%, bringing its total holdings to 11,271,361 shares, valued at $174.25 million after acquiring an additional 53,612 shares. Similarly, Clark Capital Management Group Inc. increased its holdings by 1.8%, now owning 6,496,260 shares valued at $100.43 million following a purchase of 111,952 shares.
Other notable investors include Northern Trust Corp, which boosted its stake by 3.2%, and American Century Companies Inc., which increased its holdings by 5.9%. Natixis Advisors LLC made a significant move, raising its holdings by 59.8%, now owning 1,439,197 shares valued at $22.25 million.
Analysts and Market Performance
Recent research reports have prompted analysts to revisit their ratings for Sumitomo Mitsui Financial Group. Notably, Zacks Research upgraded the company from a “hold” to a “strong-buy” rating on September 5, 2023. Meanwhile, Weiss Ratings maintained a “hold (C+)” rating in an assessment released on October 8, 2023. Additionally, Wall Street Zen shifted its recommendation from “sell” to “hold” on August 2, 2023. Currently, two analysts rate the stock as a strong buy, while one gives it a hold rating, resulting in an average rating of “buy” according to data from MarketBeat.com.
As of the latest trading session, shares of SMFG opened at $16.31. The company’s market capitalization stands at $104.83 billion, with a price-to-earnings ratio of 17.16 and a price-to-earnings growth ratio of 0.78. The stock has fluctuated between a 12-month low of $11.83 and a high of $17.46.
Sumitomo Mitsui Financial Group recently reported its quarterly earnings on July 31, 2023. The bank achieved earnings per share (EPS) of $0.40, exceeding consensus estimates of $0.31 by $0.09. The reported revenue for the quarter was $16.41 billion, significantly surpassing the consensus estimate of $1.09 billion. The bank has demonstrated a return on equity of 7.88% and a net margin of 11.78%. Analysts anticipate that Sumitomo Mitsui Financial Group will post an EPS of $0.39 for the current fiscal year.
Company Overview and Services
Sumitomo Mitsui Financial Group, Inc., along with its subsidiaries, offers a range of services including banking, leasing, securities, credit card, and consumer finance. The company operates across various regions, including Japan, the Americas, Europe, the Middle East, Asia, and Oceania. Its organizational structure includes several segments: Wholesale Business Unit, Retail Business Unit, Global Business Unit, and Global Markets Business Unit.
This uptick in institutional investment and positive analyst ratings reflects growing confidence in Sumitomo Mitsui Financial Group’s market position and future growth potential.