Commerce Bancshares, Inc. (CBSH) Upgraded to Buy by Zacks Investment Research
Zacks Investment Research upgraded shares of Commerce Bancshares, Inc. (NASDAQ:CBSH) from a hold rating to a buy rating in a research note published on Monday morning. The firm currently has $62.00 price target on the financial services provider’s stock.
According to Zacks, “Shares of Commerce Bancshares have underperformed the industry in the past year. However, the company has surpassed the Zacks Consensus Estimate for earnings in three of the trailing four quarters. The company's efforts to expand its footprint in newer markets, an improving rate scenario and expectation of lesser regulations are expected to boost revenues further. Also, strong loan and deposit balance should support its profitability. Given a solid liquidity position, the company should be able to continue enhancing shareholder value through efficient capital deployment activities. However, rising expenses mainly due to increase in personnel costs and investments in franchise remain a major headwind. Further, a significant exposure to real estate loans remains a near-term concern for the company.”
A number of other brokerages have also recently issued reports on CBSH. Piper Jaffray Companies reissued a hold rating and issued a $52.00 target price on shares of Commerce Bancshares in a research report on Friday, July 14th. Stephens reissued an equal weight rating and issued a $56.00 target price (up previously from $52.00) on shares of Commerce Bancshares in a research report on Monday, July 17th. BidaskClub cut shares of Commerce Bancshares from a sell rating to a strong sell rating in a research report on Monday, July 31st. Barclays PLC set a $58.00 target price on shares of Commerce Bancshares and gave the company a hold rating in a research report on Sunday, July 16th. Finally, UBS AG cut shares of Commerce Bancshares to an underperform rating in a research report on Thursday, August 10th. Five analysts have rated the stock with a sell rating and six have given a hold rating to the company. The stock currently has an average rating of Hold and an average price target of $54.63.
Commerce Bancshares (CBSH) opened at 54.99 on Monday. The firm has a market cap of $5.59 billion, a PE ratio of 19.92 and a beta of 0.81. The stock has a 50 day moving average of $56.65 and a 200-day moving average of $56.36. Commerce Bancshares has a 52 week low of $45.37 and a 52 week high of $60.61.
Commerce Bancshares (NASDAQ:CBSH) last released its quarterly earnings data on Thursday, July 13th. The financial services provider reported $0.75 EPS for the quarter, topping the Zacks’ consensus estimate of $0.70 by $0.05. The firm had revenue of $305.89 million during the quarter, compared to analysts’ expectations of $309.44 million. Commerce Bancshares had a net margin of 23.79% and a return on equity of 12.01%. The company’s revenue for the quarter was up 6.1% compared to the same quarter last year. During the same period in the previous year, the business posted $0.70 earnings per share. Analysts expect that Commerce Bancshares will post $2.94 earnings per share for the current year.
The company also recently disclosed a quarterly dividend, which will be paid on Monday, September 25th. Investors of record on Friday, September 8th will be given a dividend of $0.225 per share. The ex-dividend date of this dividend is Thursday, September 7th. This represents a $0.90 annualized dividend and a yield of 1.64%. Commerce Bancshares’s dividend payout ratio is 32.64%.
In related news, Chairman David W. Kemper sold 10,132 shares of the company’s stock in a transaction dated Friday, July 21st. The shares were sold at an average price of $57.83, for a total transaction of $585,933.56. Following the completion of the sale, the chairman now owns 1,270,757 shares of the company’s stock, valued at $73,487,877.31. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Vice Chairman Jonathan M. Kemper sold 36,979 shares of the company’s stock in a transaction dated Wednesday, June 7th. The stock was sold at an average price of $54.10, for a total transaction of $2,000,563.90. Following the sale, the insider now directly owns 1,045,605 shares of the company’s stock, valued at approximately $56,567,230.50. The disclosure for this sale can be found here. Insiders have sold 48,099 shares of company stock valued at $2,643,431 in the last ninety days. 4.30% of the stock is currently owned by company insiders.
Large investors have recently bought and sold shares of the company. Tyers Asset Management LLC boosted its stake in Commerce Bancshares by 18.2% in the first quarter. Tyers Asset Management LLC now owns 5,296 shares of the financial services provider’s stock valued at $297,000 after buying an additional 816 shares in the last quarter. State Treasurer State of Michigan boosted its stake in Commerce Bancshares by 1.1% in the first quarter. State Treasurer State of Michigan now owns 35,541 shares of the financial services provider’s stock valued at $1,996,000 after buying an additional 400 shares in the last quarter. Great West Life Assurance Co. Can boosted its stake in Commerce Bancshares by 3.4% in the first quarter. Great West Life Assurance Co. Can now owns 71,265 shares of the financial services provider’s stock valued at $3,996,000 after buying an additional 2,357 shares in the last quarter. Wells Fargo & Company MN boosted its stake in Commerce Bancshares by 2.7% in the first quarter. Wells Fargo & Company MN now owns 954,013 shares of the financial services provider’s stock valued at $53,577,000 after buying an additional 25,294 shares in the last quarter. Finally, Oregon Public Employees Retirement Fund boosted its stake in Commerce Bancshares by 1.3% in the first quarter. Oregon Public Employees Retirement Fund now owns 30,595 shares of the financial services provider’s stock valued at $1,718,000 after buying an additional 400 shares in the last quarter. 62.19% of the stock is owned by institutional investors and hedge funds.
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, mortgage banking, 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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