Zacks Investment Research Lowers Commerce Bancshares (CBSH) to Sell
Commerce Bancshares (NASDAQ:CBSH) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Tuesday.
According to Zacks, “Shares of Commerce Bancshares have underperformed the industry in the past three months. Nonetheless, the company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters. Though, strong loans and deposit balances, and easing margin pressure should support revenue growth in the quarters ahead, continuously rising expenses are expected to hurt profitability. Also, the company has significant exposure to real estate loans, which remains a major concern. Though there has been an improvement in the housing sector, any further deterioration in the real estate prices will pose a problem for the company.”
Several other analysts also recently weighed in on the stock. Piper Jaffray Companies reiterated a “neutral” rating and issued a $60.00 price objective on shares of Commerce Bancshares in a research report on Friday, October 6th. Keefe, Bruyette & Woods reiterated a “sell” rating and issued a $51.00 price objective on shares of Commerce Bancshares in a research report on Friday, September 15th. Six investment analysts have rated the stock with a sell rating and five have given a hold rating to the stock. The stock has an average rating of “Sell” and an average price target of $56.63.
Commerce Bancshares (NASDAQ:CBSH) last issued its quarterly earnings data on Thursday, October 12th. The financial services provider reported $0.71 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.74 by ($0.03). The firm had revenue of $304.83 million during the quarter, compared to the consensus estimate of $317.28 million. Commerce Bancshares had a net margin of 23.93% and a return on equity of 12.08%. The company’s revenue for the quarter was up 4.9% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.68 earnings per share. equities analysts expect that Commerce Bancshares will post 2.77 EPS for the current year.
In other Commerce Bancshares news, insider V Raymond Stranghoener sold 6,399 shares of the firm’s stock in a transaction dated Thursday, October 26th. The shares were sold at an average price of $58.40, for a total transaction of $373,701.60. Following the transaction, the insider now owns 47,112 shares of the company’s stock, valued at approximately $2,751,340.80. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. 4.30% of the stock is currently owned by company insiders.
Institutional investors and hedge funds have recently made changes to their positions in the company. Captrust Financial Advisors acquired a new position in shares of Commerce Bancshares in the 2nd quarter worth approximately $106,000. Citizens Financial Group Inc RI increased its position in shares of Commerce Bancshares by 25.5% in the second quarter. Citizens Financial Group Inc RI now owns 2,650 shares of the financial services provider’s stock worth $151,000 after acquiring an additional 539 shares in the last quarter. Mosaic Family Wealth LLC increased its position in shares of Commerce Bancshares by 5.8% in the second quarter. Mosaic Family Wealth LLC now owns 3,297 shares of the financial services provider’s stock worth $187,000 after acquiring an additional 181 shares in the last quarter. Zurcher Kantonalbank Zurich Cantonalbank increased its position in shares of Commerce Bancshares by 8.6% in the second quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 3,339 shares of the financial services provider’s stock worth $190,000 after acquiring an additional 264 shares in the last quarter. Finally, SignalPoint Asset Management LLC purchased a new position in shares of Commerce Bancshares in the third quarter worth approximately $226,000. 59.15% of the stock is currently 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, mortgage banking, 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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