Commerce Bancshares (NASDAQ:CBSH) Price Target Raised to $77.00

Key Points

• Morgan Stanley raised Commerce Bancshares’ price target from $76 to $77 and maintained an “overweight” rating, implying 36.43% upside from the prior close.
• Analyst sentiment remains mixed: Commerce Bancshares has an overall “Hold” rating and an average price target of $65, based on three Buy ratings and seven Holds.
• The company exceeded quarterly expectations, reporting $1.10 in EPS versus the $1.04 consensus and revenue of $498.91 million versus estimates of $492.22 million. Institutional investors own 70.26% of the stock, while insiders have sold 32,950 shares over the past 90 days.

Commerce Bancshares (NASDAQ:CBSH - Get Free Report) had its price objective increased by analysts at Morgan Stanley from $76.00 to $77.00 in a research report issued to clients and investors on Monday, Benzinga reports. The brokerage presently has an "overweight" rating on the financial services provider's stock. Morgan Stanley's price objective would suggest a potential upside of 36.43% from the company's previous close.

CBSH has been the subject of a number of other research reports. Piper Sandler reiterated a "neutral" rating and issued a $66.00 price target (up from $59.00) on shares of Commerce Bancshares in a research report on Friday, July 17th. Keefe, Bruyette & Woods lifted their target price on shares of Commerce Bancshares from $60.00 to $62.00 and gave the stock a "market perform" rating in a research report on Monday, July 20th. Wells Fargo & Company set a $63.00 price target on shares of Commerce Bancshares and gave the company an "equal weight" rating in a research report on Monday, August 10th. Stephens set a $64.00 target price on shares of Commerce Bancshares and gave the company an "equal weight" rating in a research note on Friday, July 17th. Finally, Weiss Ratings raised Commerce Bancshares from a "buy (b-)" rating to a "buy (b)" rating in a research report on Wednesday, September 16th. Three investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat.com, Commerce Bancshares presently has an average rating of "Hold" and an average target price of $65.00.

Commerce Bancshares Stock Performance

Shares of CBSH opened at $56.44 on Monday. The company has a debt-to-equity ratio of 0.01, a current ratio of 0.82 and a quick ratio of 0.82. The firm's 50 day moving average is $58.47 and its 200-day moving average is $54.65. Commerce Bancshares has a 12-month low of $46.99 and a 12-month high of $60.92. The stock has a market capitalization of $8.10 billion, a P/E ratio of 13.67, a P/E/G ratio of 2.01 and a beta of 0.58.

Commerce Bancshares (NASDAQ:CBSH - Get Free Report) last posted its quarterly earnings results on Thursday, July 16th. The financial services provider reported $1.10 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.04 by $0.06. The firm had revenue of $498.91 million for the quarter, compared to analyst estimates of $492.22 million. Commerce Bancshares had a net margin of 26.07% and a return on equity of 14.31%. During the same quarter in the previous year, the business posted $1.14 earnings per share. Equities research analysts anticipate that Commerce Bancshares will post 4.25 EPS for the current fiscal year.

Insider Activity

In related news, CEO John W. Kemper sold 5,830 shares of Commerce Bancshares stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $60.58, for a total value of $353,181.40. Following the completion of the sale, the chief executive officer owned 206,528 shares of the company's stock, valued at approximately $12,511,466.24. The trade was a 2.75% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Robert S. Holmes sold 5,000 shares of the company's stock in a transaction on Thursday, July 30th. The stock was sold at an average price of $60.20, for a total transaction of $301,000.00. Following the completion of the sale, the executive vice president owned 55,962 shares of the company's stock, valued at $3,368,912.40. This represents a 8.20% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 32,950 shares of company stock valued at $1,963,777. 1.80% of the stock is currently owned by company insiders.

Institutional Trading of Commerce Bancshares

Several large investors have recently made changes to their positions in CBSH. Sequoia Financial Advisors LLC raised its stake in shares of Commerce Bancshares by 196.4% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 12,189 shares of the financial services provider's stock valued at $704,000 after acquiring an additional 8,076 shares in the last quarter. Integrated Wealth Concepts LLC boosted its position in Commerce Bancshares by 48.2% during the second quarter. Integrated Wealth Concepts LLC now owns 27,560 shares of the financial services provider's stock worth $1,592,000 after purchasing an additional 8,958 shares during the period. NewEdge Advisors LLC grew its stake in Commerce Bancshares by 95.0% in the 2nd quarter. NewEdge Advisors LLC now owns 19,581 shares of the financial services provider's stock valued at $1,131,000 after buying an additional 9,537 shares during the last quarter. IFP Advisors Inc grew its position in shares of Commerce Bancshares by 3,863.6% in the second quarter. IFP Advisors Inc now owns 2,180 shares of the financial services provider's stock valued at $126,000 after purchasing an additional 2,125 shares during the last quarter. Finally, Squarepoint Ops LLC boosted its stake in Commerce Bancshares by 48.1% during the 2nd quarter. Squarepoint Ops LLC now owns 8,594 shares of the financial services provider's stock valued at $496,000 after purchasing an additional 2,790 shares during the period. Institutional investors own 70.26% of the company's stock.

About Commerce Bancshares

Commerce Bancshares, Inc is a financial services holding company headquartered in Kansas City, Missouri. Through its principal subsidiary, Commerce Bank, the company provides banking and financial services to individuals, businesses, institutions and government entities.

Commerce Bank offers deposit accounts, consumer and commercial lending, treasury and payment services, wealth management, trust services, investment banking and brokerage services. Its commercial banking activities include financing, cash-management solutions and other services designed for businesses and institutional clients.

Founded in 1865, Commerce Bancshares primarily serves customers through a regional network centered in Missouri and extending into Kansas, Illinois, Oklahoma and Colorado.

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