Commerce Bancshares Inc. (CBSH) Rating Increased to Hold at Zacks Investment Research
Commerce Bancshares Inc. (NASDAQ:CBSH) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued on Thursday.
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.”
Several other equities research analysts also recently weighed in on CBSH. Jefferies Group reiterated a “hold” rating and issued a $48.00 price target on shares of Commerce Bancshares in a report on Thursday, July 7th. Piper Jaffray Cos. initiated coverage on Commerce Bancshares in a report on Monday, July 11th. They issued a “neutral” rating and a $43.50 price target on the stock. Morgan Stanley downgraded Commerce Bancshares from an “equal weight” rating to an “underweight” rating and set a $45.00 price target on the stock. in a report on Tuesday, September 20th. Finally, Barclays PLC increased their price target on Commerce Bancshares from $45.00 to $48.00 and gave the stock an “equal weight” rating in a report on Tuesday. One investment analyst has rated the stock with a sell rating and five have given a hold rating to the company’s stock. The company has a consensus rating of “Hold” and a consensus price target of $45.75.
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Commerce Bancshares (NASDAQ:CBSH) traded down 1.79% during midday trading on Thursday, reaching $49.50. The company’s stock had a trading volume of 591,057 shares. Commerce Bancshares has a 12-month low of $37.44 and a 12-month high of $51.30. The firm has a 50 day moving average price of $49.58 and a 200-day moving average price of $47.83. The company has a market cap of $4.78 billion, a P/E ratio of 18.97 and a beta of 0.74.
Commerce Bancshares (NASDAQ:CBSH) last posted its quarterly earnings data 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 earned $288.40 million during the quarter, compared to analyst estimates of $295.65 million. Commerce Bancshares had a return on equity of 11.58% and a net margin of 23.03%. The company’s revenue for the quarter was up 3.9% on a year-over-year basis. During the same period last year, the company earned $0.71 EPS. On average, equities research analysts predict that Commerce Bancshares will post $2.77 earnings per share for the current fiscal year.
The firm 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 1.82%. The ex-dividend date was Wednesday, September 7th. Commerce Bancshares’s dividend payout ratio (DPR) is presently 34.50%.
In other Commerce Bancshares news, Vice Chairman Jonathan M. Kemper sold 50,000 shares of the company’s stock in a transaction on Thursday, September 8th. The shares were sold at an average price of $50.07, for a total value of $2,503,500.00. Following the completion of the transaction, the insider now owns 1,192,407 shares in the company, valued at $59,703,818.49. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Charles G. Kim sold 5,000 shares of the company’s stock in a transaction on Friday, July 22nd. The shares were sold at an average price of $48.04, for a total transaction of $240,200.00. Following the completion of the transaction, the insider now owns 82,551 shares of the company’s stock, valued at approximately $3,965,750.04. The disclosure for this sale can be found here. 4.60% of the stock is owned by corporate insiders.
A number of institutional investors have recently added to or reduced their stakes in CBSH. Speece Thorson Capital Group Inc. increased its position in Commerce Bancshares by 1.4% in the second quarter. Speece Thorson Capital Group Inc. now owns 279,621 shares of the financial services provider’s stock valued at $13,394,000 after buying an additional 3,816 shares in the last quarter. Prudential Financial Inc. increased its position 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 in the last quarter. JPMorgan Chase & Co. increased its position in 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. Aviva PLC increased its position in 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. Finally, Ameriprise Financial Inc. increased its position in Commerce Bancshares by 3.2% in the second quarter. Ameriprise Financial Inc. now owns 216,221 shares of the financial services provider’s stock valued at $10,356,000 after buying an additional 6,783 shares in 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.
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