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 note issued to investors 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.”
CBSH has been the subject of several other reports. Piper Jaffray Cos. assumed coverage on shares of Commerce Bancshares in a report on Monday, July 11th. They issued a “neutral” rating and a $43.50 price objective for the company. Jefferies Group reiterated a “hold” rating and set a $48.00 target price on shares of Commerce Bancshares in a report on Thursday, July 7th. Morgan Stanley lowered shares of Commerce Bancshares from an “equal weight” rating to an “underweight” rating and set a $45.00 target price for the company. in a report on Tuesday, September 20th. Finally, Barclays PLC lifted their target price on shares of Commerce Bancshares from $45.00 to $48.00 and gave the company an “equal weight” rating in a report on Tuesday. One research analyst has rated the stock with a sell rating and five have assigned a hold rating to the stock. Commerce Bancshares has a consensus rating of “Hold” and a consensus target price of $45.75.
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Commerce Bancshares (NASDAQ:CBSH) traded down 2.2026% during trading on Thursday, reaching $49.2899. The company had a trading volume of 376,184 shares. The firm has a market capitalization of $4.76 billion, a PE ratio of 18.8850 and a beta of 0.74. The firm’s 50 day moving average price is $49.58 and its 200 day moving average price is $47.83. Commerce Bancshares has a 12-month low of $37.44 and a 12-month high of $51.30.
Commerce Bancshares (NASDAQ:CBSH) last issued its quarterly earnings data on Wednesday, July 13th. The financial services provider reported $0.70 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.68 by $0.02. Commerce Bancshares had a net margin of 23.03% and a return on equity of 11.58%. The business earned $288.40 million during the quarter, compared to analyst estimates of $295.65 million. During the same period last year, the business posted $0.71 earnings per share. Commerce Bancshares’s quarterly revenue was up 3.9% compared to the same quarter last year. Equities research analysts forecast that Commerce Bancshares will post $2.77 EPS for the current year.
The company also recently declared a quarterly dividend, which was paid on Monday, September 26th. Investors of record on Friday, September 9th were given a dividend of $0.225 per share. This represents a $0.90 annualized dividend and a dividend yield of 1.79%. The ex-dividend date was Wednesday, September 7th. Commerce Bancshares’s dividend payout ratio (DPR) is currently 34.50%.
In related news, insider Charles G. Kim sold 5,000 shares of the firm’s stock in a transaction that occurred 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 sale, the insider now owns 82,551 shares of the company’s stock, valued at $3,965,750.04. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider V Raymond Stranghoener sold 4,964 shares of the firm’s stock in a transaction that occurred on Monday, August 8th. The shares were sold at an average price of $48.49, for a total transaction of $240,704.36. Following the sale, the insider now directly owns 80,869 shares of the company’s stock, valued at approximately $3,921,337.81. The disclosure for this sale can be found here. Corporate insiders own 4.60% of the company’s stock.
Large investors have recently made changes to their positions in the stock. Vanguard Group Inc. increased its stake in shares of Commerce Bancshares by 3.3% in the second quarter. Vanguard Group Inc. now owns 6,706,151 shares of the financial services provider’s stock valued at $321,225,000 after buying an additional 217,230 shares during the period. BlackRock Fund Advisors increased its stake in Commerce Bancshares by 3.3% in the second quarter. BlackRock Fund Advisors now owns 3,019,077 shares of the financial services provider’s stock worth $144,614,000 after buying an additional 96,208 shares during the period. BlackRock Institutional Trust Company N.A. increased its stake in Commerce Bancshares by 2.2% in the second quarter. BlackRock Institutional Trust Company N.A. now owns 2,572,618 shares of the financial services provider’s stock worth $123,228,000 after buying an additional 55,787 shares during the period. Dimensional Fund Advisors LP increased its stake in Commerce Bancshares by 2.9% in the second quarter. Dimensional Fund Advisors LP now owns 829,250 shares of the financial services provider’s stock worth $39,717,000 after buying an additional 23,399 shares during the period. Finally, Geode Capital Management LLC increased its stake in Commerce Bancshares by 0.4% in the first quarter. Geode Capital Management LLC now owns 569,404 shares of the financial services provider’s stock worth $25,594,000 after buying an additional 2,494 shares during the period. 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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