Zacks Investment Research upgraded shares of Commerce Bancshares Inc. (NASDAQ:CBSH) from a sell rating to a hold rating in a research note released on Thursday morning.
According to Zacks, “Estimates have been stable lately ahead of Commerce Bancshares’ third-quarter 2016 earnings release. Notably, the company has a negative record of earnings surprises in recent quarters. Further, net interest margin continues to remain under pressure owing to a persistent low rate scenario. Moreover, elevated non-interest expenses remain a concern due to the increased compliance costs as well as the company’s strategy to invest in franchise. In addition, increased exposure to risky loans continues to be a matter of concern. Nonetheless, the company is witnessing continuous improvement in non-interest income and its robust loan and deposit balances indicate enhanced revenue generation going forward. Additionally, a strong asset quality will continue to support future growth. Also, the company has been expanding its footprints in newer markets, while streamlining operations by undertaking various restructuring initiatives.”
Other analysts also recently issued reports about the stock. Barclays PLC lifted their price objective on shares of Commerce Bancshares from $45.00 to $48.00 and gave the stock an equal weight rating in a report on Tuesday. Piper Jaffray Cos. began coverage on shares of Commerce Bancshares in a report on Monday, July 11th. They set a neutral rating and a $43.50 price objective for the company. Jefferies Group reaffirmed a hold rating on shares of Commerce Bancshares in a report on Thursday, August 18th. Finally, Morgan Stanley downgraded shares of Commerce Bancshares from an equal weight rating to an underweight rating and set a $45.00 price objective for the company. in a report on Tuesday, September 20th. One equities research analyst has rated the stock with a sell rating and five have issued a hold rating to the company. The company presently has a consensus rating of Hold and an average target price of $45.75.
Shares of Commerce Bancshares (NASDAQ:CBSH) traded down 1.74% during mid-day trading on Thursday, reaching $48.64. 323,582 shares of the company’s stock were exchanged. The company has a 50 day moving average price of $49.58 and a 200-day moving average price of $47.84. Commerce Bancshares has a one year low of $37.44 and a one year high of $51.30. The stock has a market cap of $4.70 billion, a PE ratio of 18.64 and a beta of 0.74.
Commerce Bancshares (NASDAQ:CBSH) last announced its quarterly earnings results on Friday, October 14th. The financial services provider reported $0.68 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.70 by $0.02. Commerce Bancshares had a net margin of 23.03% and a return on equity of 11.58%. The firm earned $290.60 million during the quarter, compared to the consensus estimate of $296.49 million. During the same period in the previous year, the business earned $0.63 earnings per share. The firm’s revenue for the quarter was up 6.3% on a year-over-year basis. On average, analysts predict that Commerce Bancshares will post $2.77 EPS for the current year.
The firm also recently announced a quarterly dividend, which was paid on Monday, September 26th. Investors of record on Friday, September 9th were given a $0.225 dividend. This represents a $0.90 dividend on an annualized basis and a yield of 1.82%. The ex-dividend date of this dividend was Wednesday, September 7th. Commerce Bancshares’s payout ratio is presently 34.50%.
In related news, insider V Raymond Stranghoener sold 4,964 shares of Commerce Bancshares stock in a transaction on Monday, August 8th. The shares were sold at an average price of $48.49, for a total value of $240,704.36. Following the transaction, the insider now owns 80,869 shares in the company, valued at approximately $3,921,337.81. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Vice Chairman Jonathan M. Kemper sold 50,000 shares of Commerce Bancshares 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 owns 1,242,407 shares in the company, 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.
Institutional investors have recently modified their holdings of the company. Capstone Asset Management Co. boosted its position in Commerce Bancshares by 1.0% in the third quarter. Capstone Asset Management Co. now owns 6,804 shares of the financial services provider’s stock worth $335,000 after buying an additional 69 shares during the last quarter. Creative Planning boosted its position in Commerce Bancshares by 2.6% in the third quarter. Creative Planning now owns 100,953 shares of the financial services provider’s stock worth $4,973,000 after buying an additional 2,534 shares during the last quarter. Oregon Public Employees Retirement Fund boosted its position in Commerce Bancshares by 2.0% in the third quarter. Oregon Public Employees Retirement Fund now owns 28,758 shares of the financial services provider’s stock worth $1,417,000 after buying an additional 572 shares during the last quarter. Mason Street Advisors LLC purchased a new position in Commerce Bancshares during the second quarter worth about $1,814,000. Finally, Public Employees Retirement System of Ohio boosted its position in Commerce Bancshares by 30.8% in the second quarter. Public Employees Retirement System of Ohio now owns 36,618 shares of the financial services provider’s stock worth $1,754,000 after buying an additional 8,626 shares during the last quarter. Institutional investors own 60.86% of the company’s stock.
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.