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    How Strong Q3 Beat, Dividend Streak, and Insider Sale At Cullen/Frost (CFR) Has Changed Its Investment Story

    Simply Wall St·12/14/2025 09:17:04
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    • Cullen/Frost Bankers recently reported Q3 2025 results with earnings per share and revenue slightly ahead of analyst expectations, while Group EVP and General Counsel Rhodes Coolidge E JR sold 700 shares on December 9, 2025, trimming his direct stake.
    • This mix of stronger-than-expected earnings, a 33-year record of dividend increases, and forecasts for weaker profitability offers a nuanced picture of Frost Bank’s outlook.
    • Next, we’ll consider how the insider share sale alongside strong Q3 earnings shapes Cullen/Frost’s existing investment narrative and risk profile.

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    Cullen/Frost Bankers Investment Narrative Recap

    To own Cullen/Frost Bankers, you need to believe its Texas-focused, relationship banking model and long dividend history can keep adding value even if profitability softens. The latest Q3 beat on earnings and revenue, alongside forecasts for a decline in tangible book value, does not appear to alter the key near term catalyst of branch and technology investments starting to earn their keep, but it does heighten attention on margin pressure as the main risk.

    The recent insider sale by Group EVP and General Counsel Rhodes Coolidge E JR, coming shortly after the bank once again affirmed its US$1.00 quarterly dividend, puts the income story in sharper focus. For many shareholders, the consistency and gradual growth of that dividend is central to the investment case, so watching how it interacts with slowing earnings expectations and rising expense growth is essential.

    Yet behind Frost’s long dividend streak, investors should be aware of the growing tension between higher operating costs and...

    Read the full narrative on Cullen/Frost Bankers (it's free!)

    Cullen/Frost Bankers' narrative projects $2.4 billion revenue and $596.4 million earnings by 2028. This requires 4.6% yearly revenue growth and a slight earnings decrease of about $0.3 million from $596.7 million today.

    Uncover how Cullen/Frost Bankers' forecasts yield a $137.60 fair value, a 6% upside to its current price.

    Exploring Other Perspectives

    CFR 1-Year Stock Price Chart
    CFR 1-Year Stock Price Chart

    Four members of the Simply Wall St Community currently see Cullen/Frost’s fair value anywhere between about US$119 and an extreme outlier above US$100,000, underscoring how far views can diverge. Set against that, the bank’s slower projected revenue growth and pressure on profitability invite you to weigh these contrasting perspectives on how its expansion and cost base could shape returns.

    Explore 4 other fair value estimates on Cullen/Frost Bankers - why the stock might be worth 8% less than the current price!

    Build Your Own Cullen/Frost Bankers Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.