Commerce Bancshares (NASDAQ:CBSH) Stock Price Expected to Rise, Keefe, Bruyette & Woods Analyst Says

Key Points

• Keefe, Bruyette & Woods raised its price target on Commerce Bancshares to $56 (from $54) and kept a "market perform" rating, implying about a 9% upside from the current price.
• Commerce Bancshares beat quarterly EPS estimates with $0.96 vs. $0.94 and posted revenue up 11.1% year-over-year at $475.7M, though revenue slightly missed forecasts; the company reported a 26.37% net margin and 14.78% return on equity.
• The consensus analyst view remains a "Hold" with a $59.30 average target, and institutional investors control roughly 70% of the stock—with large positions from Vanguard, Norges Bank and others.

Commerce Bancshares (NASDAQ:CBSH - Get Free Report) had its price target increased by equities researchers at Keefe, Bruyette & Woods from $54.00 to $56.00 in a report released on Thursday,Benzinga reports. The firm currently has a "market perform" rating on the financial services provider's stock. Keefe, Bruyette & Woods' price target suggests a potential upside of 9.03% from the stock's current price.

Several other brokerages also recently weighed in on CBSH. Weiss Ratings reiterated a "hold (c)" rating on shares of Commerce Bancshares in a research report on Friday, March 27th. Piper Sandler reiterated a "neutral" rating and issued a $58.50 price objective on shares of Commerce Bancshares in a research report on Thursday. TD Cowen reiterated a "hold" rating on shares of Commerce Bancshares in a research report on Thursday. Zacks Research upgraded shares of Commerce Bancshares from a "strong sell" rating to a "hold" rating in a research report on Wednesday, March 4th. Finally, Wells Fargo & Company cut their price objective on shares of Commerce Bancshares from $60.00 to $53.00 and set an "equal weight" rating on the stock in a research report on Monday, March 30th. One research analyst has rated the stock with a Buy rating and eight have issued a Hold rating to the company. According to data from MarketBeat.com, Commerce Bancshares presently has a consensus rating of "Hold" and a consensus target price of $59.30.

Commerce Bancshares Trading Up 1.5%

NASDAQ:CBSH traded up $0.76 during mid-day trading on Thursday, hitting $51.36. The stock had a trading volume of 476,401 shares, compared to its average volume of 1,316,791. The stock has a market capitalization of $7.54 billion, a price-to-earnings ratio of 12.32, a P/E/G ratio of 3.64 and a beta of 0.60. The company has a 50 day simple moving average of $50.44 and a 200-day simple moving average of $51.87. Commerce Bancshares has a 52 week low of $46.99 and a 52 week high of $63.19.

Commerce Bancshares (NASDAQ:CBSH - Get Free Report) last issued its quarterly earnings data on Tuesday, April 21st. The financial services provider reported $0.96 earnings per share for the quarter, beating the consensus estimate of $0.94 by $0.02. The firm had revenue of $475.69 million for the quarter, compared to the consensus estimate of $481.94 million. Commerce Bancshares had a net margin of 26.37% and a return on equity of 14.78%. Commerce Bancshares's quarterly revenue was up 11.1% compared to the same quarter last year. During the same period last year, the firm posted $0.98 EPS. As a group, equities research analysts anticipate that Commerce Bancshares will post 4.07 earnings per share for the current year.

Insider Activity

In other Commerce Bancshares news, SVP Derrick Brooks sold 1,044 shares of the firm's stock in a transaction dated Wednesday, February 4th. The shares were sold at an average price of $54.40, for a total transaction of $56,793.60. Following the transaction, the senior vice president owned 14,585 shares of the company's stock, valued at approximately $793,424. This trade represents a 6.68% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Timothy S. Dunn bought 2,500 shares of the stock in a transaction on Friday, March 13th. The shares were bought at an average cost of $47.71 per share, for a total transaction of $119,275.00. Following the purchase, the director owned 5,403 shares in the company, valued at $257,777.13. This trade represents a 86.12% increase in their position. The SEC filing for this purchase provides additional information. Insiders have sold 29,477 shares of company stock worth $1,586,655 in the last 90 days. 1.80% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Commerce Bancshares

Several hedge funds have recently made changes to their positions in CBSH. Norges Bank acquired a new position in shares of Commerce Bancshares in the 4th quarter worth approximately $85,282,000. Champlain Investment Partners LLC acquired a new position in shares of Commerce Bancshares in the 4th quarter worth approximately $58,830,000. Vanguard Group Inc. grew its stake in shares of Commerce Bancshares by 8.1% in the 4th quarter. Vanguard Group Inc. now owns 14,690,039 shares of the financial services provider's stock worth $768,877,000 after purchasing an additional 1,098,142 shares during the last quarter. Victory Capital Management Inc. grew its stake in shares of Commerce Bancshares by 1,433.7% in the 4th quarter. Victory Capital Management Inc. now owns 1,145,683 shares of the financial services provider's stock worth $59,965,000 after purchasing an additional 1,070,980 shares during the last quarter. Finally, First Trust Advisors LP grew its stake in shares of Commerce Bancshares by 37.4% in the 4th quarter. First Trust Advisors LP now owns 2,352,406 shares of the financial services provider's stock worth $123,125,000 after purchasing an additional 640,928 shares during the last quarter. Institutional investors and hedge funds own 70.26% of the company's stock.

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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