Commerce Bancshares (NASDAQ:CBSH) Sets New 12-Month Low on Disappointing Earnings

Key Points

• Commerce Bancshares reached a new 52-week low of $52.20 after reporting earnings of $1.06 per share, missing analyst expectations of $1.09.
• The company declared a quarterly dividend of $0.275, with a 2.1% dividend yield and a payout ratio of 26.19%.
• Analysts maintain a generally neutral outlook on the stock, with a consensus price target of $68.43, while one analyst rated it a Buy.

Commerce Bancshares, Inc. (NASDAQ:CBSH - Get Free Report) reached a new 52-week low during mid-day trading on Thursday following a dissappointing earnings announcement. The stock traded as low as $52.51 and last traded at $52.20, with a volume of 1335177 shares. The stock had previously closed at $56.66.

The financial services provider reported $1.06 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.09 by ($0.03). Commerce Bancshares had a return on equity of 16.01% and a net margin of 26.37%.During the same quarter in the prior year, the firm posted $1.07 earnings per share. Commerce Bancshares's revenue for the quarter was up 4.7% compared to the same quarter last year.

Commerce Bancshares Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, September 23rd. Shareholders of record on Friday, September 5th were paid a $0.275 dividend. The ex-dividend date was Friday, September 5th. This represents a $1.10 annualized dividend and a dividend yield of 2.1%. Commerce Bancshares's dividend payout ratio (DPR) is presently 26.19%.

Wall Street Analysts Forecast Growth

CBSH has been the topic of several analyst reports. Hovde Group began coverage on shares of Commerce Bancshares in a research note on Monday, October 6th. They issued an "outperform" rating and a $70.00 price target on the stock. Piper Sandler lifted their price target on shares of Commerce Bancshares from $66.50 to $70.00 and gave the stock a "neutral" rating in a research report on Thursday, July 17th. Morgan Stanley raised their price objective on Commerce Bancshares from $66.00 to $70.00 and gave the stock an "underperform" rating in a research note on Monday, September 29th. Bank of America raised their price objective on shares of Commerce Bancshares from $69.00 to $71.00 and gave the company a "neutral" rating in a research report on Tuesday, June 24th. Finally, Weiss Ratings reissued a "hold (c+)" rating on shares of Commerce Bancshares in a research report on Wednesday, October 8th. One analyst has rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $68.43.

Hedge Funds Weigh In On Commerce Bancshares

Several large investors have recently bought and sold shares of the business. Allspring Global Investments Holdings LLC bought a new stake in Commerce Bancshares in the first quarter valued at approximately $1,855,000. HighTower Advisors LLC increased its stake in Commerce Bancshares by 39.5% in the first quarter. HighTower Advisors LLC now owns 19,259 shares of the financial services provider's stock valued at $1,198,000 after purchasing an additional 5,453 shares in the last quarter. Alliancebernstein L.P. increased its stake in Commerce Bancshares by 67.6% in the first quarter. Alliancebernstein L.P. now owns 271,115 shares of the financial services provider's stock valued at $16,871,000 after purchasing an additional 109,375 shares in the last quarter. GAMMA Investing LLC increased its stake in Commerce Bancshares by 64.9% in the first quarter. GAMMA Investing LLC now owns 1,878 shares of the financial services provider's stock valued at $117,000 after purchasing an additional 739 shares in the last quarter. Finally, Novem Group increased its stake in Commerce Bancshares by 35.3% in the first quarter. Novem Group now owns 16,663 shares of the financial services provider's stock valued at $1,037,000 after purchasing an additional 4,344 shares in the last quarter. 70.26% of the stock is currently owned by institutional investors and hedge funds.

Commerce Bancshares Price Performance

The stock has a market cap of $6.96 billion, a P/E ratio of 12.43, a P/E/G ratio of 7.25 and a beta of 0.59. The company's 50 day simple moving average is $60.24 and its 200 day simple moving average is $61.37.

Commerce Bancshares Company Profile

Commerce Bancshares, Inc operates as the bank holding company for Commerce Bank that provides retail, mortgage banking, corporate, investment, trust, and asset management products and services to individuals and businesses in the United States. It operates through three segments: Consumer, Commercial, and Wealth.

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