Commerce Bancshares (NASDAQ:CBSH) Shares Gap Up on Better-Than-Expected Earnings

Shares of Commerce Bancshares, Inc. (NASDAQ:CBSH) gapped up before the market opened on Wednesday following a stronger than expected earnings report. The stock had previously closed at $52.01, but opened at $53.23. Commerce Bancshares shares last traded at $53.24, with a volume of 59,904 shares.

The financial services provider reported $0.86 earnings per share for the quarter, topping the consensus estimate of $0.80 by $0.06. The company had revenue of $397.80 million for the quarter, compared to analysts’ expectations of $389.49 million. Commerce Bancshares had a net margin of 24.41% and a return on equity of 17.46%. Commerce Bancshares’s quarterly revenue was up 2.2% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.90 earnings per share.

Commerce Bancshares Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, June 18th. Investors of record on Wednesday, June 5th will be given a $0.27 dividend. This represents a $1.08 dividend on an annualized basis and a yield of 2.04%. Commerce Bancshares’s dividend payout ratio is presently 29.75%.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on CBSH. Keefe, Bruyette & Woods increased their target price on shares of Commerce Bancshares from $56.00 to $58.00 and gave the company a “market perform” rating in a research note on Wednesday. Piper Sandler increased their price objective on shares of Commerce Bancshares from $53.00 to $54.00 and gave the stock a “neutral” rating in a research report on Wednesday. StockNews.com raised shares of Commerce Bancshares from a “sell” rating to a “hold” rating in a research note on Wednesday. Bank of America initiated coverage on Commerce Bancshares in a research note on Thursday, January 11th. They set a “neutral” rating and a $55.00 target price on the stock. Finally, Raymond James raised Commerce Bancshares from a “market perform” rating to an “outperform” rating and set a $61.00 price target for the company in a research note on Wednesday. Six equities research analysts have rated the stock with a hold rating and one has given a buy rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $55.00.

Insider Transactions at Commerce Bancshares

In other news, EVP Robert S. Holmes sold 5,000 shares of the business’s stock in a transaction dated Monday, March 11th. The shares were sold at an average price of $52.66, for a total value of $263,300.00. Following the completion of the sale, the executive vice president now owns 50,293 shares in the company, valued at approximately $2,648,429.38. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. In related news, SVP Patricia R. Kellerhals sold 730 shares of the firm’s stock in a transaction dated Wednesday, January 24th. The stock was sold at an average price of $54.87, for a total transaction of $40,055.10. Following the sale, the senior vice president now owns 25,502 shares of the company’s stock, valued at $1,399,294.74. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, EVP Robert S. Holmes sold 5,000 shares of the business’s stock in a transaction dated Monday, March 11th. The stock was sold at an average price of $52.66, for a total transaction of $263,300.00. Following the completion of the transaction, the executive vice president now owns 50,293 shares of the company’s stock, valued at $2,648,429.38. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 14,321 shares of company stock valued at $752,387. 3.10% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Commerce Bancshares

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CBSH. BKM Wealth Management LLC purchased a new position in shares of Commerce Bancshares in the 4th quarter valued at approximately $29,000. Creative Financial Designs Inc. ADV acquired a new stake in Commerce Bancshares during the 4th quarter worth about $35,000. PCA Investment Advisory Services Inc. purchased a new stake in Commerce Bancshares during the 2nd quarter valued at about $38,000. Quantbot Technologies LP acquired a new position in shares of Commerce Bancshares in the second quarter valued at about $42,000. Finally, Clarity Asset Management Inc. purchased a new position in shares of Commerce Bancshares in the fourth quarter worth about $43,000. 70.26% of the stock is currently owned by hedge funds and other institutional investors.

Commerce Bancshares Price Performance

The stock has a fifty day moving average of $51.97 and a 200 day moving average of $50.92. The stock has a market cap of $6.89 billion, a price-to-earnings ratio of 14.62 and a beta of 0.79.

Commerce Bancshares Company Profile

Commerce Bancshares, Inc operates as the bank holding company for Commerce Bank that provides retail, mortgage banking, corporate, investment, trust, and asset management products and services to individuals and businesses in the United States. It operates through three segments: Consumer, Commercial, and Wealth.