Commerce Bancshares (NASDAQ:CBSH) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded Commerce Bancshares to “sell” from “hold,” although the broader analyst consensus remains “hold” with a $64.71 target price.
• Commerce Bancshares reported quarterly EPS of $1.10, exceeding the $1.04 estimate, while revenue of $498.91 million also topped expectations.
• The stock opened at $55.28, below its 52-week high of $60.92; institutional investors own approximately 70.26% of outstanding shares, while insiders have recently sold stock.

Commerce Bancshares (NASDAQ:CBSH - Get Free Report) was downgraded by analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a report issued on Saturday, Wall Street Zen reports.

A number of other equities analysts also recently issued reports on CBSH. Morgan Stanley raised their price target on Commerce Bancshares from $76.00 to $77.00 and gave the stock an "overweight" rating in a research note on Monday, September 28th. Raymond James Financial raised Commerce Bancshares to a "hold" rating in a research report on Thursday, August 27th. TD Cowen reiterated a "hold" rating and issued a $63.00 price objective (up from $62.00) on shares of Commerce Bancshares in a research note on Friday, July 17th. Piper Sandler restated a "neutral" rating and set a $66.00 target price (up from $59.00) on shares of Commerce Bancshares in a research report on Friday, July 17th. Finally, Wells Fargo & Company set a $61.00 price target on shares of Commerce Bancshares and gave the stock an "equal weight" rating in a research report on Tuesday. Three equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat, Commerce Bancshares has a consensus rating of "Hold" and a consensus target price of $64.71.

Commerce Bancshares Price Performance

CBSH opened at $55.28 on Friday. The company's 50-day simple moving average is $58.12 and its two-hundred day simple moving average is $54.86. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.82 and a current ratio of 0.82. The stock has a market capitalization of $7.93 billion, a P/E ratio of 13.38, a P/E/G ratio of 1.96 and a beta of 0.60. Commerce Bancshares has a 52-week low of $46.99 and a 52-week high of $60.92.

Commerce Bancshares (NASDAQ:CBSH - Get Free Report) last released its quarterly earnings data on Thursday, July 16th. The financial services provider reported $1.10 earnings per share for the quarter, beating the consensus estimate of $1.04 by $0.06. Commerce Bancshares had a net margin of 26.07% and a return on equity of 14.31%. The firm had revenue of $498.91 million during the quarter, compared to analysts' expectations of $492.22 million. During the same period in the previous year, the company earned $1.14 earnings per share. As a group, analysts predict that Commerce Bancshares will post 4.23 EPS for the current year.

Insider Transactions at Commerce Bancshares

In related news, EVP Robert Holmes sold 5,000 shares of Commerce Bancshares stock in a transaction on Thursday, July 30th. The shares were sold at an average price of $60.20, for a total transaction of $301,000.00. Following the transaction, the executive vice president owned 55,962 shares in the company, valued at approximately $3,368,912.40. The trade was a 8.20% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO John Kemper sold 5,830 shares of the stock in a transaction on Wednesday, July 29th. The stock was 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 $12,511,466.24. The trade was a 2.75% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 32,950 shares of company stock valued at $1,963,777. Company insiders own 1.80% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in CBSH. BlackRock Inc. bought a new stake in shares of Commerce Bancshares in the second quarter worth about $755,669,000. Commerce Bank bought a new position in Commerce Bancshares during the second quarter valued at approximately $316,010,000. Norges Bank bought a new position in Commerce Bancshares during the fourth quarter valued at approximately $85,282,000. Bank of America Corp DE purchased a new position in Commerce Bancshares during the 2nd quarter valued at approximately $83,328,000. Finally, Bank of New York Mellon Corp purchased a new position in Commerce Bancshares during the 2nd quarter valued at approximately $54,444,000. 70.26% of the stock is owned by hedge funds and other institutional investors.

About Commerce Bancshares

Commerce Bancshares, Inc is a financial holding company headquartered in Kansas City, Missouri. Its principal subsidiary, Commerce Bank, provides banking and financial services to businesses, institutions and individuals through a network of branches and digital channels.

The company's offerings include commercial and consumer lending, deposit accounts, treasury and payment services, credit and debit cards, investment services, brokerage, trust administration and wealth management. Commerce also provides specialized services for businesses, including cash management, merchant processing and other payment solutions.

Commerce Bank traces its history to 1865 and primarily serves customers in Missouri, Kansas, Illinois, Oklahoma and Colorado.

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