According to Zacks, “Commerce Bancshares’ consistent improvement in non-interest income is expected to offset the impact of low interest rates, with robust loan and deposit balances indicate enhanced revenue generation going forward. Also, the strong capital position will support capital deployment activities to boost shareholders’ value. Moreover, the company’s asset quality is expected to reflect continuous progress propelled by economic recovery. However, net interest margin continues to remain under pressure owing to a persistent low rate scenario. Further, elevated expenses remain a concern due to the increased compliance costs as well as the company’s strategy to invest in franchise. Moreover, higher capital requirement will likely affect the company’ near-term lending as well as investment abilities.”
CBSH has been the subject of a number of other research reports. Morgan Stanley downgraded shares of Commerce Bancshares from an equal weight rating to an underweight rating and set a $45.00 target price for the company. in a research report on Tuesday, September 20th. Jefferies Group reaffirmed a hold rating and issued a $48.00 target price on shares of Commerce Bancshares in a research report on Thursday, July 7th. Finally, Piper Jaffray Cos. initiated coverage on shares of Commerce Bancshares in a research report on Monday, July 11th. They set a neutral rating and a $43.50 price objective for the company. One investment analyst has rated the stock with a sell rating and five have given a hold rating to the stock. The stock currently has an average rating of Hold and an average target price of $45.25.
Shares of Commerce Bancshares (NASDAQ:CBSH) opened at 48.64 on Monday. The stock has a market cap of $4.70 billion, a P/E ratio of 18.64 and a beta of 0.81. Commerce Bancshares has a 52-week low of $37.44 and a 52-week high of $51.30. The firm’s 50-day moving average price is $49.33 and its 200-day moving average price is $47.51.
Commerce Bancshares (NASDAQ:CBSH) last posted its earnings results on Wednesday, July 13th. The financial services provider reported $0.70 EPS for the quarter, topping analysts’ consensus estimates of $0.68 by $0.02. Commerce Bancshares had a net margin of 23.03% and a return on equity of 11.58%. The business earned $288.40 million during the quarter, compared to the consensus estimate of $295.65 million. During the same quarter in the previous year, the firm posted $0.71 EPS. The firm’s revenue was up 3.9% on a year-over-year basis. Equities analysts predict that Commerce Bancshares will post $2.77 EPS for the current year.
The company also recently announced a quarterly dividend, which was paid on Monday, September 26th. Investors of record on Friday, September 9th were issued a $0.225 dividend. This represents a $0.90 annualized dividend and a yield of 1.85%. The ex-dividend date of this dividend was Wednesday, September 7th. Commerce Bancshares’s dividend payout ratio is currently 34.50%.
In related news, CEO David W. Kemper sold 40,000 shares of the company’s stock in a transaction on Friday, July 15th. The shares were sold at an average price of $48.86, for a total value of $1,954,400.00. Following the completion of the transaction, the chief executive officer now owns 1,316,068 shares of the company’s stock, valued at approximately $64,303,082.48. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, Vice Chairman Jonathan M. Kemper sold 50,000 shares of the company’s stock in a transaction on Thursday, July 28th. The stock was sold at an average price of $47.22, for a total transaction of $2,361,000.00. Following the completion of the transaction, the insider now directly owns 1,242,407 shares of the company’s stock, valued at approximately $58,666,458.54. The disclosure for this sale can be found here. 4.60% of the stock is currently owned by corporate insiders.
Hedge funds and other institutional investors have recently modified their holdings of the company. Aviva PLC increased its position in shares of Commerce Bancshares by 0.9% in the first quarter. Aviva PLC now owns 49,192 shares of the financial services provider’s stock valued at $2,211,000 after buying an additional 457 shares in the last quarter. Bessemer Group Inc. purchased a new position in shares of Commerce Bancshares during the first quarter valued at $4,711,000. Champlain Investment Partners LLC increased its position in shares of Commerce Bancshares by 0.8% in the first quarter. Champlain Investment Partners LLC now owns 1,310,435 shares of the financial services provider’s stock valued at $58,904,000 after buying an additional 10,288 shares in the last quarter. JPMorgan Chase & Co. increased its position in shares of Commerce Bancshares by 198.9% in the first quarter. JPMorgan Chase & Co. now owns 228,753 shares of the financial services provider’s stock valued at $10,282,000 after buying an additional 152,209 shares in the last quarter. Finally, BlackRock Group LTD increased its position in shares of Commerce Bancshares by 5.2% in the first quarter. BlackRock Group LTD now owns 330,011 shares of the financial services provider’s stock valued at $14,835,000 after buying an additional 16,296 shares in the last quarter. 60.86% of the stock is owned by institutional investors.
Commerce Bancshares Company Profile
Commerce Bancshares, Inc is a bank holding company of Commerce Bank (the Bank). The Bank is engaged in general banking business, providing a range of retail, corporate, investment, trust and asset management products and services to individuals and businesses. The Company operates through three segments: Consumer, Commercial and Wealth.
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