Commerce Bancshares (NASDAQ:CBSH) Given New $57.00 Price Target at Keefe, Bruyette & Woods

Key Points

• Keefe, Bruyette & Woods raised Commerce Bancshares’ price target from $56 to $57 while keeping a market perform rating, implying about 11.6% upside from the current share price.
• The stock was trading around $51.09, near its 50-day moving average, and the latest analyst view remains cautious overall: the consensus rating is Hold with a consensus target of $59.30.
• Commerce Bancshares recently reported Q1 EPS of $0.96, beating expectations, though revenue came in slightly below estimates; the company also remains heavily owned by institutions, with 70.26% held by hedge funds and other investors.

Commerce Bancshares (NASDAQ:CBSH - Get Free Report) had its price target hoisted by investment analysts at Keefe, Bruyette & Woods from $56.00 to $57.00 in a research note issued on Wednesday,Benzinga reports. The brokerage currently has a "market perform" rating on the financial services provider's stock. Keefe, Bruyette & Woods' price objective would suggest a potential upside of 11.58% from the company's current price.

Other equities research analysts have also recently issued reports about the company. Zacks Research upgraded Commerce Bancshares from a "strong sell" rating to a "hold" rating in a report on Wednesday, March 4th. Morgan Stanley decreased their price target on Commerce Bancshares from $67.00 to $65.00 and set an "equal weight" rating on the stock in a research note on Monday, March 2nd. TD Cowen reiterated a "hold" rating and issued a $54.00 price objective (up from $53.00) on shares of Commerce Bancshares in a research report on Thursday, April 23rd. Weiss Ratings reissued a "hold (c)" rating on shares of Commerce Bancshares in a research note on Friday, March 27th. Finally, Wells Fargo & Company cut their target price on shares of Commerce Bancshares from $60.00 to $53.00 and set an "equal weight" rating on the stock in a report on Monday, March 30th. One investment analyst has rated the stock with a Buy rating and eight have assigned a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $59.30.

Commerce Bancshares Stock Down 0.1%

Shares of Commerce Bancshares stock traded down $0.06 during trading on Wednesday, reaching $51.09. The company's stock had a trading volume of 74,443 shares, compared to its average volume of 1,287,130. Commerce Bancshares has a 52-week low of $46.99 and a 52-week high of $63.19. The firm's 50-day moving average is $50.10 and its two-hundred day moving average is $51.68. The company has a market cap of $7.45 billion, a price-to-earnings ratio of 12.26, a PEG ratio of 3.48 and a beta of 0.61.

Commerce Bancshares (NASDAQ:CBSH - Get Free Report) last issued its earnings results on Tuesday, April 21st. The financial services provider reported $0.96 EPS for the quarter, topping analysts' consensus estimates of $0.94 by $0.02. Commerce Bancshares had a net margin of 26.37% and a return on equity of 14.78%. The company had revenue of $475.69 million for the quarter, compared to analysts' expectations of $481.94 million. During the same quarter last year, the company earned $0.98 EPS. The firm's revenue was up 11.1% compared to the same quarter last year. On average, equities research analysts anticipate that Commerce Bancshares will post 4.1 EPS for the current year.

Insider Activity

In related news, SVP Kim L. Jakovich sold 949 shares of the company's stock in a transaction that occurred on Thursday, March 5th. The stock was sold at an average price of $51.45, for a total transaction of $48,826.05. Following the completion of the transaction, the senior vice president owned 12,741 shares in the company, valued at $655,524.45. This represents a 6.93% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Timothy S. Dunn purchased 2,500 shares of the company's stock in a transaction that occurred on Friday, March 13th. The stock was acquired at an average cost of $47.71 per share, with a total value of $119,275.00. Following the purchase, the director directly owned 5,403 shares of the company's stock, valued at $257,777.13. This trade represents a 86.12% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders own 1.80% of the company's stock.

Institutional Investors Weigh In On Commerce Bancshares

Institutional investors and hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. raised its stake in Commerce Bancshares by 8.1% in the fourth quarter. Vanguard Group Inc. now owns 14,690,039 shares of the financial services provider's stock worth $768,877,000 after buying an additional 1,098,142 shares in the last quarter. State Street Corp boosted its position in Commerce Bancshares by 8.4% during the 4th quarter. State Street Corp now owns 7,318,898 shares of the financial services provider's stock valued at $383,071,000 after acquiring an additional 566,853 shares in the last quarter. Commerce Bank grew its holdings in shares of Commerce Bancshares by 7.0% during the 4th quarter. Commerce Bank now owns 5,660,823 shares of the financial services provider's stock worth $296,287,000 after acquiring an additional 369,636 shares during the period. American Century Companies Inc. grew its holdings in shares of Commerce Bancshares by 5.4% during the 3rd quarter. American Century Companies Inc. now owns 3,972,884 shares of the financial services provider's stock worth $237,420,000 after acquiring an additional 202,758 shares during the period. Finally, Dimensional Fund Advisors LP raised its position in shares of Commerce Bancshares by 29.3% in the 1st quarter. Dimensional Fund Advisors LP now owns 3,943,247 shares of the financial services provider's stock worth $193,999,000 after acquiring an additional 894,183 shares in the last quarter. 70.26% of the stock is owned by hedge funds and other institutional investors.

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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