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

Key Points

• Analyst consensus is “Hold”: Six of nine analysts rate Commerce Bancshares a hold and three recommend buying, with an average 12-month price target of $63.29.
• Quarterly results exceeded expectations: The company reported earnings of $1.10 per share versus the $1.04 consensus estimate and revenue of $498.91 million, above expectations of $492.22 million.
• Commerce Bancshares declared a dividend: The quarterly payout is $0.275 per share, equating to an annualized dividend of $1.10 and a yield of approximately 1.9%. Insiders have sold 31,842 shares worth about $1.90 million over the past 90 days.

Commerce Bancshares, Inc. (NASDAQ:CBSH - Get Free Report) has been given an average recommendation of "Hold" by the nine analysts that are presently covering the company, Marketbeat reports. Six analysts have rated the stock with a hold recommendation and three have issued a buy recommendation on the company. The average 12-month price objective among brokers that have issued a report on the stock in the last year is $63.2857.

Several brokerages have weighed in on CBSH. Hovde Group dropped their price target on shares of Commerce Bancshares from $63.00 to $60.00 and set an "outperform" rating for the company in a research report on Wednesday, April 22nd. Wells Fargo & Company set a $63.00 price objective on shares of Commerce Bancshares and gave the company an "equal weight" rating in a research note on Monday. Wall Street Zen upgraded shares of Commerce Bancshares from a "sell" rating to a "hold" rating in a report on Tuesday, July 28th. TD Cowen reissued a "hold" rating and issued a $63.00 target price (up from $62.00) on shares of Commerce Bancshares in a research note on Friday, July 17th. Finally, Stephens set a $64.00 price target on Commerce Bancshares and gave the company an "equal weight" rating in a report on Friday, July 17th.

Insiders Place Their Bets

In other news, CFO Charles G. Kim sold 19,771 shares of the business's stock in a transaction that occurred on Monday, July 27th. The stock was sold at an average price of $59.18, for a total transaction of $1,170,047.78. Following the transaction, the chief financial officer directly owned 119,410 shares of the company's stock, valued at approximately $7,066,683.80. The trade was a 14.21% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Robert S. Holmes sold 5,000 shares of the company's stock in a transaction that occurred on Thursday, July 30th. The shares were sold at an average price of $60.20, for a total value of $301,000.00. Following the transaction, the executive vice president owned 55,962 shares of the company's stock, valued at approximately $3,368,912.40. This represents a 8.20% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 31,842 shares of company stock valued at $1,897,310 in the last 90 days. 1.80% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the stock. Ieq Capital LLC purchased a new stake in shares of Commerce Bancshares in the 2nd quarter worth about $7,176,000. Cauble & Harre Wealth Management Inc. purchased a new position in shares of Commerce Bancshares during the second quarter valued at about $547,000. Keating Financial Advisory Services Inc. purchased a new position in shares of Commerce Bancshares during the second quarter valued at about $29,000. Allworth Financial LP bought a new position in Commerce Bancshares in the second quarter worth about $1,217,000. Finally, Oxford Financial Group LTD. LLC bought a new position in Commerce Bancshares in the second quarter worth about $565,000. 70.26% of the stock is currently owned by institutional investors.

Commerce Bancshares Stock Performance

NASDAQ:CBSH opened at $59.02 on Wednesday. The firm has a market cap of $8.47 billion, a PE ratio of 14.29, a price-to-earnings-growth ratio of 2.09 and a beta of 0.59. Commerce Bancshares has a fifty-two week low of $46.99 and a fifty-two week high of $60.92. 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 business has a 50 day moving average price of $57.38 and a 200-day moving average price of $53.48.

Commerce Bancshares (NASDAQ:CBSH - Get Free Report) last issued its earnings results on Thursday, July 16th. The financial services provider reported $1.10 EPS for the quarter, topping 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 company had revenue of $498.91 million for the quarter, compared to the consensus estimate of $492.22 million. During the same period in the previous year, the firm earned $1.14 earnings per share. Equities research analysts predict that Commerce Bancshares will post 4.24 earnings per share for the current year.

Commerce Bancshares Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 22nd. Shareholders of record on Friday, September 4th will be issued a $0.275 dividend. The ex-dividend date is Friday, September 4th. This represents a $1.10 annualized dividend and a yield of 1.9%. Commerce Bancshares's dividend payout ratio (DPR) is 26.63%.

Commerce Bancshares Company Profile

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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