Commerce Bancshares (NASDAQ:CBSH) Issues Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Key Points

• Quarterly results: Commerce Bancshares reported $0.96 EPS, beating the $0.94 consensus by $0.02, while revenue missed at $475.69M versus $481.94M; revenue rose 11.1% year‑over‑year but EPS was down from $0.98 a year earlier.
• Stock and dividend: CBSH traded down about 1.6% to $50.59 with a $7.43B market cap and a 12.07 PE, and it paid a quarterly dividend of $0.275 ($1.10 annualized) for a 2.2% yield and a 26.25% payout ratio.
• Market sentiment and insider activity: Analysts hold a consensus "Hold" with a $60.47 target, insiders were net sellers over the last three months (29,477 shares sold), and institutional investors own roughly 70.3% of the shares.

Commerce Bancshares (NASDAQ:CBSH - Get Free Report) posted its quarterly earnings results on Tuesday. The financial services provider reported $0.96 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.94 by $0.02, Zacks reports. The firm had revenue of $475.69 million during the quarter, compared to analyst estimates of $481.94 million. Commerce Bancshares had a net margin of 26.51% and a return on equity of 15.34%. The company's quarterly revenue was up 11.1% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.98 earnings per share.

Commerce Bancshares Trading Down 1.6%

CBSH opened at $50.59 on Wednesday. Commerce Bancshares has a 1-year low of $46.99 and a 1-year high of $63.19. The stock has a market capitalization of $7.43 billion, a PE ratio of 12.07, a PEG ratio of 3.70 and a beta of 0.60. The firm has a 50-day moving average price of $50.52 and a two-hundred day moving average price of $51.87.

Commerce Bancshares Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, March 24th. Investors of record on Friday, March 6th were given a dividend of $0.275 per share. The ex-dividend date was Friday, March 6th. This represents a $1.10 annualized dividend and a yield of 2.2%. Commerce Bancshares's dividend payout ratio is 26.25%.

Insider Buying and Selling at Commerce Bancshares

In related news, SVP Derrick Brooks sold 1,044 shares of the business's stock in a transaction that occurred on Wednesday, February 4th. The shares were sold at an average price of $54.40, for a total value of $56,793.60. Following the completion of the transaction, the senior vice president owned 14,585 shares in the company, valued at $793,424. The trade was a 6.68% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Timothy S. Dunn acquired 2,500 shares of the firm's stock in a transaction on Friday, March 13th. The stock was purchased at an average price of $47.71 per share, for a total transaction of $119,275.00. Following the completion of the transaction, the director directly owned 5,403 shares in the company, valued at approximately $257,777.13. The trade was a 86.12% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders sold 29,477 shares of company stock valued at $1,586,655 over the last three months. 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. Danske Bank A S acquired a new position in shares of Commerce Bancshares in the 3rd quarter valued at $25,000. Geneos Wealth Management Inc. boosted its stake in Commerce Bancshares by 85.4% during the 1st quarter. Geneos Wealth Management Inc. now owns 469 shares of the financial services provider's stock worth $29,000 after acquiring an additional 216 shares during the last quarter. Headlands Technologies LLC acquired a new position in Commerce Bancshares during the second quarter valued at approximately $59,000. Kestra Advisory Services LLC bought a new stake in Commerce Bancshares in the fourth quarter valued at approximately $153,000. Finally, Boothbay Fund Management LLC acquired a new stake in Commerce Bancshares in the second quarter worth $222,000. 70.26% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

CBSH has been the subject of several analyst reports. Piper Sandler set a $62.00 target price on Commerce Bancshares and gave the stock a "neutral" rating in a research report on Monday, January 26th. Weiss Ratings reiterated a "hold (c)" rating on shares of Commerce Bancshares in a research report on Friday, March 27th. Keefe, Bruyette & Woods dropped their price objective on Commerce Bancshares from $56.00 to $54.00 and set a "market perform" rating for the company in a research note on Thursday, April 9th. Wells Fargo & Company reduced 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 research note on Monday, March 30th. Finally, Morgan Stanley lowered their target price on shares of Commerce Bancshares from $67.00 to $65.00 and set an "equal weight" rating on the stock in a report on Monday, March 2nd. One research analyst has rated the stock with a Buy rating and eight have issued a Hold rating to the company's stock. Based on data from MarketBeat, Commerce Bancshares currently has a consensus rating of "Hold" and a consensus price target of $60.47.

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.