Zacks Investment Research downgraded shares of Commerce Bancshares (NASDAQ:CBSH) from a buy rating to a hold rating in a research note issued to investors on Tuesday.
According to Zacks, “Shares of Commerce Bancshares have outperformed the industry in the past six months. Also, the company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters. Impressive loans and deposit balances, higher interest rates and efforts to grow fee income will continue supporting revenue growth. Also, lower tax rates and easing of regulations will likely provide support to some extent. Further, its steady capital deployment activities reflect strong balance sheet position. However, continuously rising operating expenses are likely to hurt bottom-line growth to some extent. Moreover, the company's exposure to risky loan portfolios remains a major concern as it might hamper financials.”
Other research analysts also recently issued research reports about the stock. BidaskClub upgraded shares of Commerce Bancshares from a hold rating to a buy rating in a research report on Friday, September 7th. ValuEngine downgraded shares of Commerce Bancshares from a buy rating to a hold rating in a research report on Tuesday, October 2nd. Three research analysts have rated the stock with a sell rating and ten have given a hold rating to the company’s stock. The stock has a consensus rating of Hold and a consensus target price of $64.33.
Commerce Bancshares (NASDAQ:CBSH) last posted its earnings results on Thursday, October 11th. The financial services provider reported $1.03 EPS for the quarter, topping the consensus estimate of $0.96 by $0.07. Commerce Bancshares had a net margin of 30.97% and a return on equity of 15.56%. The business had revenue of $331.47 million for the quarter, compared to the consensus estimate of $330.91 million. Analysts predict that Commerce Bancshares will post 3.95 earnings per share for the current year.
The company also recently declared a quarterly dividend, which will be paid on Monday, December 17th. Stockholders of record on Friday, November 30th will be given a $0.235 dividend. The ex-dividend date of this dividend is Thursday, November 29th. This represents a $0.94 dividend on an annualized basis and a dividend yield of 1.43%. Commerce Bancshares’s dividend payout ratio (DPR) is currently 33.94%.
In other news, Director Jonathan M. Kemper sold 45,000 shares of the business’s stock in a transaction that occurred on Tuesday, September 11th. The shares were sold at an average price of $71.35, for a total value of $3,210,750.00. Following the transaction, the director now owns 902,348 shares in the company, valued at approximately $64,382,529.80. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Paula S. Petersen sold 838 shares of the business’s stock in a transaction that occurred on Monday, September 10th. The stock was sold at an average price of $71.72, for a total transaction of $60,101.36. Following the completion of the transaction, the insider now owns 17,698 shares in the company, valued at approximately $1,269,300.56. The disclosure for this sale can be found here. Insiders sold a total of 55,878 shares of company stock worth $3,917,540 in the last 90 days. Corporate insiders own 4.00% of the company’s stock.
Several hedge funds and other institutional investors have recently modified their holdings of CBSH. Acadian Asset Management LLC lifted its position in shares of Commerce Bancshares by 224.3% during the 3rd quarter. Acadian Asset Management LLC now owns 1,842 shares of the financial services provider’s stock valued at $121,000 after acquiring an additional 1,274 shares during the period. Chesley Taft & Associates LLC acquired a new position in shares of Commerce Bancshares during the 3rd quarter valued at $203,000. Cullen Frost Bankers Inc. acquired a new position in shares of Commerce Bancshares during the 2nd quarter valued at $206,000. Natixis acquired a new position in shares of Commerce Bancshares during the 2nd quarter valued at $207,000. Finally, Martingale Asset Management L P acquired a new position in shares of Commerce Bancshares during the 2nd quarter valued at $212,000. Hedge funds and other institutional investors own 63.09% of the company’s stock.
Commerce Bancshares Company Profile
Commerce Bancshares, Inc operates as the holding company for Commerce Bank that provides retail, mortgage banking, corporate, investment, trust, and asset management products and services to individuals and businesses. It operates through three segments: Consumer, Commercial, and Wealth. The Consumer segment offers various banking products and services, including consumer deposits; consumer loans, such as automobile, motorcycle, marine, tractor/trailer, recreational vehicle, fixed rate and revolving home equity, and other consumer loans; patient health care financing; real estate loans; indirect and other consumer financing; personal mortgage banking; consumer installment lending; and consumer debit and credit bank cards, as well as provides online, mobile, and telephone banking services.
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