Commerce Bancshares (NASDAQ:CBSH) Announces Earnings Results

Commerce Bancshares (NASDAQ:CBSH) announced its earnings results on Thursday. The financial services provider reported $1.10 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.04 by $0.06, Zacks reports. The business had revenue of $498.91 million for the quarter, compared to analysts’ expectations of $492.22 million. Commerce Bancshares had a return on equity of 14.31% and a net margin of 26.07%.During the same quarter last year, the firm earned $1.14 EPS.

Commerce Bancshares Stock Down 0.4%

Commerce Bancshares stock opened at $59.14 on Friday. The business’s 50-day moving average price is $54.83 and its 200 day moving average price is $52.81. The company has a quick ratio of 0.81, a current ratio of 0.82 and a debt-to-equity ratio of 0.01. The firm has a market cap of $8.62 billion, a price-to-earnings ratio of 14.32, a price-to-earnings-growth ratio of 3.04 and a beta of 0.58. Commerce Bancshares has a 52 week low of $46.99 and a 52 week high of $62.42.

Commerce Bancshares Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 23rd. Shareholders of record on Friday, June 5th were paid a dividend of $0.275 per share. The ex-dividend date was Friday, June 5th. This represents a $1.10 dividend on an annualized basis and a dividend yield of 1.9%. Commerce Bancshares’s dividend payout ratio (DPR) is presently 26.38%.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on CBSH. Keefe, Bruyette & Woods boosted their target price on Commerce Bancshares from $56.00 to $57.00 and gave the stock a “market perform” rating in a research note on Wednesday, May 13th. Piper Sandler reiterated a “neutral” rating and issued a $66.00 price target (up from $59.00) on shares of Commerce Bancshares in a research note on Friday. Stephens set a $64.00 price target on Commerce Bancshares and gave the stock an “equal weight” rating in a report on Friday. Morgan Stanley restated a “positive” rating and set a $65.00 price objective (up from $61.00) on shares of Commerce Bancshares in a report on Monday, June 29th. Finally, Hovde Group decreased their price objective on shares of Commerce Bancshares from $63.00 to $60.00 and set an “outperform” rating for the company in a research report on Wednesday, April 22nd. Two analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $61.71.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Champlain Investment Partners LLC purchased a new position in Commerce Bancshares in the 4th quarter valued at about $58,830,000. Victory Capital Management Inc. lifted its position in shares of Commerce Bancshares by 1,433.7% in the fourth quarter. Victory Capital Management Inc. now owns 1,145,683 shares of the financial services provider’s stock valued at $59,965,000 after acquiring an additional 1,070,980 shares in the last quarter. First Trust Advisors LP boosted its stake in shares of Commerce Bancshares by 37.4% in the fourth quarter. First Trust Advisors LP now owns 2,352,406 shares of the financial services provider’s stock worth $123,125,000 after acquiring an additional 640,928 shares during the last quarter. State Street Corp boosted its stake in shares of Commerce Bancshares by 8.4% in the fourth quarter. State Street Corp now owns 7,318,898 shares of the financial services provider’s stock worth $383,071,000 after acquiring an additional 566,853 shares during the last quarter. Finally, AQR Capital Management LLC increased its position in shares of Commerce Bancshares by 82.1% during the third quarter. AQR Capital Management LLC now owns 1,245,068 shares of the financial services provider’s stock worth $74,368,000 after purchasing an additional 561,331 shares in the last quarter. Institutional investors and hedge funds own 70.26% of the company’s stock.

Key Stories Impacting Commerce Bancshares

Here are the key news stories impacting Commerce Bancshares this week:

• Positive Sentiment: CBSH reported Q2 EPS of $1.10, ahead of the $1.04 consensus, and revenue of $498.91 million versus expectations of $492.22 million, signaling solid operating performance. Article Title
• Positive Sentiment: Management noted higher net interest income and fee income, which helped offset rising costs and credit loss provisions, suggesting underlying business strength. Article Title
• Positive Sentiment: Several headlines highlighted that Commerce Bancshares topped second-quarter expectations on stronger margin and loan growth, reinforcing the earnings beat narrative. Article Title
• Neutral Sentiment: Morgan Stanley reaffirmed a Hold rating and kept its $65 price target, indicating a balanced view after the results rather than a major change in sentiment. Article Title
• Neutral Sentiment: Stephens also moved to a Hold view, suggesting the stock may already reflect much of the good news from the quarter. Article Title
• Negative Sentiment: Despite the earnings beat, year-over-year EPS was slightly lower than last year’s quarter, and some commentary noted valuation concerns tied to excess capital, which may limit upside. Article Title

Commerce Bancshares Company Profile

Commerce Bancshares, Inc is a bank holding company primarily engaged in providing a broad range of banking and financial services across the Midwest. Through its principal subsidiary, Commerce Bank, the company offers commercial and consumer banking, treasury management, trust and wealth advisory, and mortgage lending. Its diversified product suite includes deposit and loan products, cash management solutions, capital markets services, and private banking designed to meet the needs of individuals, small businesses, and large corporations.

The company’s commercial banking group delivers tailored credit facilities, equipment and inventory financing, asset-based lending, and merchant services.