Commerce Bancshares, Inc. (NASDAQ:CBSH) Receives Consensus Rating of "Hold" from Analysts

Key Points

• Commerce Bancshares has a consensus analyst rating of Hold from nine brokerages, with seven hold ratings and two buy ratings. The average 12-month price target is about $61.71.
• The company beat second-quarter expectations, reporting $1.10 EPS versus the $1.04 estimate and $498.91 million in revenue versus $492.22 million expected. Management said stronger net interest income and fee income helped offset higher costs and credit loss provisions.
• Despite the earnings beat, several analysts remain cautious: Morgan Stanley and Stephens both kept or moved to Hold-type views, suggesting much of the good news may already be priced in. The stock was trading near $59.14, below the average analyst target but not far from its 52-week high.

Commerce Bancshares, Inc. (NASDAQ:CBSH - Get Free Report) has been assigned a consensus recommendation of "Hold" from the nine brokerages that are currently covering the stock, MarketBeat reports. Seven equities research analysts have rated the stock with a hold rating and two have assigned a buy rating to the company. The average 12-month price objective among analysts that have issued a report on the stock in the last year is $61.7143.

Several research analysts have commented on CBSH shares. Piper Sandler reaffirmed a "neutral" rating and set a $66.00 price target (up from $59.00) on shares of Commerce Bancshares in a research report on Friday. TD Cowen reissued a "hold" rating and issued a $63.00 price objective (up from $62.00) on shares of Commerce Bancshares in a report on Friday. Wall Street Zen upgraded shares of Commerce Bancshares from a "sell" rating to a "hold" rating in a research report on Sunday, July 12th. Stephens set a $64.00 target price on shares of Commerce Bancshares and gave the company an "equal weight" rating in a report on Friday. Finally, Weiss Ratings upgraded shares of Commerce Bancshares from a "hold (c)" rating to a "hold (c+)" rating in a research report on Wednesday, July 8th.

Commerce Bancshares News Summary

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

• Positive Sentiment: CBSH reported Q2 EPS of $1.10, ahead of the $1.04 consensus, and revenue of $498.91 million versus expectations of $492.22 million, signaling solid operating performance. Article Title
• Positive Sentiment: Management noted higher net interest income and fee income, which helped offset rising costs and credit loss provisions, suggesting underlying business strength. Article Title
• Positive Sentiment: Several headlines highlighted that Commerce Bancshares topped second-quarter expectations on stronger margin and loan growth, reinforcing the earnings beat narrative. Article Title
• Neutral Sentiment: Morgan Stanley reaffirmed a Hold rating and kept its $65 price target, indicating a balanced view after the results rather than a major change in sentiment. Article Title
• Neutral Sentiment: Stephens also moved to a Hold view, suggesting the stock may already reflect much of the good news from the quarter. Article Title
• Negative Sentiment: Despite the earnings beat, year-over-year EPS was slightly lower than last year’s quarter, and some commentary noted valuation concerns tied to excess capital, which may limit upside. Article Title

Hedge Funds Weigh In On Commerce Bancshares

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Daytona Street Capital LLC purchased a new stake in Commerce Bancshares during the 4th quarter valued at approximately $25,000. Danske Bank A S purchased a new position in shares of Commerce Bancshares in the 3rd quarter valued at approximately $25,000. Geneos Wealth Management Inc. grew its stake in shares of Commerce Bancshares by 85.4% in the 1st quarter. Geneos Wealth Management Inc. now owns 469 shares of the financial services provider's stock valued at $29,000 after purchasing an additional 216 shares during the last quarter. Root Financial Partners LLC increased its holdings in shares of Commerce Bancshares by 104.9% in the first quarter. Root Financial Partners LLC now owns 623 shares of the financial services provider's stock valued at $31,000 after purchasing an additional 319 shares during the period. Finally, Laurel Wealth Advisors LLC acquired a new position in shares of Commerce Bancshares in the fourth quarter valued at approximately $34,000. Hedge funds and other institutional investors own 70.26% of the company's stock.

Commerce Bancshares Stock Down 0.4%

CBSH stock opened at $59.14 on Friday. The stock has a market cap of $8.62 billion, a P/E ratio of 14.32, a PEG ratio of 3.04 and a beta of 0.58. The company has a current ratio of 0.82, a quick ratio of 0.81 and a debt-to-equity ratio of 0.01. Commerce Bancshares has a twelve month low of $46.99 and a twelve month high of $62.42. The company's 50 day moving average is $54.83 and its two-hundred day moving average is $52.81.

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 (EPS) for the quarter, beating the consensus estimate of $1.04 by $0.06. The company had revenue of $498.91 million during the quarter, compared to the consensus estimate 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 prior year, the firm posted $1.14 earnings per share. Research analysts expect that Commerce Bancshares will post 4.16 earnings per share for the current fiscal year.

Commerce Bancshares Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 23rd. Stockholders of record on Friday, June 5th were issued a $0.275 dividend. This represents a $1.10 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date of this dividend was Friday, June 5th. Commerce Bancshares's dividend payout ratio is presently 26.38%.

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.

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