Commerce Bancshares, Inc. (NASDAQ:CBSH) Receives Consensus Rating of “Reduce” from Analysts

Commerce Bancshares, Inc. (NASDAQ:CBSH) has received a consensus rating of “Reduce” from the nine research firms that are presently covering the company, Marketbeat Ratings reports. Two investment analysts have rated the stock with a sell rating, six have issued a hold rating and one has assigned a buy rating to the company. The average 1 year target price among brokerages that have issued a report on the stock in the last year is $62.0340.

Several research firms recently commented on CBSH. Zacks Research cut shares of Commerce Bancshares from a “hold” rating to a “strong sell” rating in a research note on Thursday, January 8th. Weiss Ratings restated a “hold (c)” rating on shares of Commerce Bancshares in a report on Monday, December 29th. Wells Fargo & Company reduced their target price on shares of Commerce Bancshares from $61.90 to $57.14 and set an “equal weight” rating for the company in a research note on Tuesday, October 21st. Wall Street Zen downgraded Commerce Bancshares from a “hold” rating to a “sell” rating in a research report on Saturday, October 18th. Finally, Morgan Stanley upped their price target on Commerce Bancshares from $62.86 to $66.67 and gave the company an “underperform” rating in a report on Monday, September 29th.

Key Headlines Impacting Commerce Bancshares

Here are the key news stories impacting Commerce Bancshares this week:

• Positive Sentiment: Q4 results beat expectations: Commerce reported $1.01 EPS (above the $0.99 consensus) and record quarterly revenue driven by net interest income and fee income growth—evidence the core business is performing well. Commerce Bancshares, Inc. Reports Fourth Quarter Earnings Per Share of $1.01 (Press Release)
• Positive Sentiment: Record revenue and healthy margins: Revenue rose ~6.5% year-over-year with a net margin near 26.5% and ROE around 15.7%, supporting earnings power and dividend/buyback capacity. Commerce Bancshares beats Q4 expectations on record revenue
• Neutral Sentiment: Valuation/analyst context: Several write-ups note the stock’s lower price and relatively modest P/E (around 12.7), framing recent weakness as a potential buying opportunity if capital deployment and earnings trends continue. Is Commerce Bancshares (CBSH) Offering Value After Recent Share Price Weakness?
• Neutral Sentiment: Deeper metric review available: Analysts and coverage pieces compare key metrics to estimates and prior-year results to help investors assess sustainability of NII and fee trends versus credit trends. Compared to Estimates, Commerce (CBSH) Q4 Earnings: A Look at Key Metrics
• Negative Sentiment: Reserve build weighed on reaction: The stock dipped after the quarter because the bank increased credit loss provisions—investors worry higher reserves could pressure future profitability despite the revenue beat. CBSH Q4 Earnings Beat as Revenues Rise, Stock Dips on High Provisions

Commerce Bancshares Stock Down 2.2%

Shares of NASDAQ:CBSH opened at $53.21 on Friday. The company has a market cap of $7.05 billion, a price-to-earnings ratio of 12.70, a PEG ratio of 3.28 and a beta of 0.62. The business has a 50 day moving average price of $52.68 and a 200 day moving average price of $55.15. Commerce Bancshares has a twelve month low of $48.69 and a twelve month high of $65.59.

Commerce Bancshares (NASDAQ:CBSH) last issued its quarterly earnings results on Thursday, January 22nd. The financial services provider reported $1.01 EPS for the quarter, topping the consensus estimate of $0.99 by $0.02. Commerce Bancshares had a return on equity of 15.51% and a net margin of 26.51%.The company had revenue of $449.36 million for the quarter, compared to the consensus estimate of $442.47 million. During the same period in the previous year, the business posted $1.01 EPS. The company’s revenue for the quarter was up 6.5% on a year-over-year basis. Analysts anticipate that Commerce Bancshares will post 3.94 EPS for the current year.

Commerce Bancshares Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, December 15th. Investors of record on Tuesday, December 2nd were paid a $0.275 dividend. This represents a $1.10 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date was Tuesday, December 2nd. Commerce Bancshares’s dividend payout ratio is presently 26.25%.

Institutional Investors Weigh In On Commerce Bancshares

Institutional investors and hedge funds have recently bought and sold shares of the business. Daytona Street Capital LLC bought a new position in shares of Commerce Bancshares during the 4th quarter worth about $25,000. Danske Bank A S acquired a new position in Commerce Bancshares in the third quarter worth about $25,000. Geneos Wealth Management Inc. lifted its stake in Commerce Bancshares by 85.4% during the first quarter. Geneos Wealth Management Inc. now owns 469 shares of the financial services provider’s stock worth $29,000 after purchasing an additional 216 shares during the period. Quent Capital LLC acquired a new stake in Commerce Bancshares during the third quarter valued at approximately $31,000. Finally, CoreFirst Bank & Trust bought a new stake in shares of Commerce Bancshares in the 2nd quarter valued at approximately $33,000. Institutional investors own 70.26% of the company’s stock.

About Commerce Bancshares

Commerce Bancshares, Inc is a bank holding company primarily engaged in providing a broad range of banking and financial services across the Midwest. Through its principal subsidiary, Commerce Bank, the company offers commercial and consumer banking, treasury management, trust and wealth advisory, and mortgage lending. Its diversified product suite includes deposit and loan products, cash management solutions, capital markets services, and private banking designed to meet the needs of individuals, small businesses, and large corporations.

The company’s commercial banking group delivers tailored credit facilities, equipment and inventory financing, asset-based lending, and merchant services.