Commerce Bancshares Inc. (NASDAQ:CBSH) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Monday.
According to Zacks, “Commerce Bancshares’ net interest margin continues to remain strained 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. Also, the increased exposure to risky loans can pose a problem for the company is the real estate prices deteriorate any further. Moreover, stringent regulations are anticipated to lower the fee revenues in the coming quarters. Nonetheless, the company is well positioned to capitalize on inorganic growth opportunities on the back of a robust balance sheet position. Further, its initiatives in the mortgage banking area are anticipated to accelerate fee generation going forward.”
Other equities analysts have also issued research reports about the stock. Piper Jaffray Cos. started coverage on shares of Commerce Bancshares in a report on Monday, July 11th. They issued a “neutral” rating and a $43.50 target price on the stock. Jefferies Group reiterated a “hold” rating and set a $48.00 price objective on shares of Commerce Bancshares in a report on Thursday, July 7th. Finally, Morgan Stanley reiterated a “hold” rating on shares of Commerce Bancshares in a report on Tuesday, May 24th. Two investment analysts have rated the stock with a sell rating and four have issued a hold rating to the company. The company currently has an average rating of “Hold” and an average price target of $45.08.
Shares of Commerce Bancshares (NASDAQ:CBSH) opened at 48.67 on Monday. The company has a 50-day moving average of $49.13 and a 200 day moving average of $47.34. The firm has a market capitalization of $4.70 billion, a P/E ratio of 18.65 and a beta of 0.81. Commerce Bancshares has a 52 week low of $37.44 and a 52 week high of $51.30.
Commerce Bancshares (NASDAQ:CBSH) last released its earnings results on Wednesday, July 13th. The financial services provider reported $0.70 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.68 by $0.02. The business had revenue of $288.40 million for the quarter, compared to analyst estimates of $295.65 million. Commerce Bancshares had a net margin of 23.03% and a return on equity of 11.58%. Commerce Bancshares’s revenue for the quarter was up 3.9% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.71 earnings per share. Equities research analysts anticipate that Commerce Bancshares will post $2.77 earnings per share for the current year.
The firm also recently announced a quarterly dividend, which will be paid on Monday, September 26th. Stockholders of record on Friday, September 9th will be given a dividend of $0.225 per share. This represents a $0.90 annualized dividend and a dividend yield of 1.85%. The ex-dividend date is Wednesday, September 7th. Commerce Bancshares’s payout ratio is presently 34.50%.
In other news, Vice Chairman Jonathan M. Kemper sold 50,000 shares of the business’s stock in a transaction dated Thursday, September 8th. The shares were sold at an average price of $50.07, for a total transaction of $2,503,500.00. Following the completion of the sale, the insider now directly owns 1,192,407 shares of the company’s stock, valued at $59,703,818.49. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CEO David W. Kemper sold 40,000 shares of the business’s stock in a transaction dated Friday, July 15th. The stock was sold at an average price of $48.86, for a total transaction of $1,954,400.00. Following the sale, the chief executive officer now directly owns 1,316,068 shares of the company’s stock, valued at $64,303,082.48. The disclosure for this sale can be found here. Insiders own 4.60% of the company’s stock.
Several large investors have recently bought and sold shares of the company. Prudential Financial Inc. increased its stake in Commerce Bancshares by 3.0% in the first quarter. Prudential Financial Inc. now owns 74,699 shares of the financial services provider’s stock valued at $3,358,000 after buying an additional 2,200 shares during the last quarter. Aviva PLC increased its stake 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 worth $2,211,000 after buying an additional 457 shares during the last quarter. Royal Bank of Canada increased its stake in shares of Commerce Bancshares by 53.2% in the first quarter. Royal Bank of Canada now owns 119,318 shares of the financial services provider’s stock worth $5,363,000 after buying an additional 41,430 shares during the last quarter. Aperio Group LLC increased its stake in shares of Commerce Bancshares by 72.2% in the first quarter. Aperio Group LLC now owns 495,525 shares of the financial services provider’s stock worth $22,274,000 after buying an additional 207,833 shares during the last quarter. Finally, JPMorgan Chase & Co. increased its stake 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 worth $10,282,000 after buying an additional 152,209 shares during the last quarter. 60.86% of the stock is owned by institutional investors.
About Commerce Bancshares
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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