Commerce Bancshares, Inc. (NASDAQ:CBSH) Stock Now Rated "Hold" by Sell-Side Analysts

Key Points

• Analysts rate Commerce Bancshares “Hold” overall: Seven of 10 covering brokerages recommend holding the stock, while three recommend buying it. The average 12-month price target is $63.64, above the reported opening price of $56.07.
• Quarterly earnings slightly exceeded expectations: Commerce Bancshares reported EPS of $1.08 versus the $1.07 consensus estimate, though revenue of $494.34 million fell short of the $496.75 million forecast.
• The company offers a 2.0% dividend yield: Its quarterly dividend is $0.275 per share, or $1.10 annualized, with a 26.51% payout ratio. Institutional investors own 70.26% of the company, while insiders sold shares over the past 90 days.

Shares of Commerce Bancshares, Inc. (NASDAQ:CBSH - Get Free Report) have received an average rating of "Hold" from the ten brokerages that are covering the stock, Marketbeat Ratings reports. Seven analysts have rated the stock with a hold recommendation and three have assigned a buy recommendation to the company. The average twelve-month price target among analysts that have issued ratings on the stock in the last year is $63.64.

A number of brokerages recently commented on CBSH. Raymond James Financial raised Commerce Bancshares to a "hold" rating in a research note on Thursday, August 27th. TD Cowen reiterated a "hold" rating and set a $63.00 price objective (up from $62.00) on shares of Commerce Bancshares in a report on Friday, July 17th. Wall Street Zen raised Commerce Bancshares from a "sell" rating to a "hold" rating in a research report on Sunday, October 11th. Piper Sandler set a $60.50 target price on Commerce Bancshares and gave the stock a "neutral" rating in a research note on Wednesday. Finally, Weiss Ratings upgraded Commerce Bancshares from a "buy (b-)" rating to a "buy (b)" rating in a report on Friday, October 16th.

Commerce Bancshares Price Performance

Shares of Commerce Bancshares stock opened at $56.07 on Monday. The firm has a market cap of $8.04 billion, a P/E ratio of 13.51, a P/E/G ratio of 1.69 and a beta of 0.60. Commerce Bancshares has a fifty-two week low of $46.99 and a fifty-two week high of $60.92. The firm has a 50 day simple moving average of $56.77 and a 200 day simple moving average of $55.59.

Commerce Bancshares (NASDAQ:CBSH - Get Free Report) last posted its quarterly earnings results on Tuesday, October 20th. The financial services provider reported $1.08 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.07 by $0.01. Commerce Bancshares had a return on equity of 14.27% and a net margin of 26.06%. The business had revenue of $494.34 million for the quarter, compared to analysts' expectations of $496.75 million. During the same quarter last year, the business earned $1.06 earnings per share. On average, sell-side analysts expect that Commerce Bancshares will post 4.27 EPS for the current year.

Commerce Bancshares Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 22nd. Shareholders of record on Friday, September 4th were issued a $0.2750 dividend. This represents a $1.10 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date of this dividend was Friday, September 4th. Commerce Bancshares's dividend payout ratio (DPR) is currently 26.51%.

Insider Buying and Selling at Commerce Bancshares

In other news, SVP Douglas D. Neff sold 666 shares of Commerce Bancshares stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $58.15, for a total transaction of $38,727.90. Following the sale, the senior vice president directly owned 11,746 shares of the company's stock, valued at approximately $683,029.90. This trade represents a 5.37% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, SVP Derrick Brooks sold 1,041 shares of the business's stock in a transaction that occurred on Tuesday, July 28th. The stock was sold at an average price of $59.63, for a total transaction of $62,074.83. Following the sale, the senior vice president directly owned 13,117 shares in the company, valued at $782,166.71. The trade was a 7.35% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 13,179 shares of company stock worth $793,729 over the last 90 days. 1.80% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Commerce Bancshares

Institutional investors and hedge funds have recently made changes to their positions in the stock. Versant Capital Management Inc raised its holdings in Commerce Bancshares by 146.6% during the 3rd quarter. Versant Capital Management Inc now owns 508 shares of the financial services provider's stock worth $28,000 after purchasing an additional 302 shares during the last quarter. Keating Financial Advisory Services Inc. bought a new stake in shares of Commerce Bancshares during the second quarter valued at approximately $29,000. Root Financial Partners LLC grew its holdings in shares of Commerce Bancshares by 104.9% during the first quarter. Root Financial Partners LLC now owns 623 shares of the financial services provider's stock valued at $31,000 after buying an additional 319 shares during the last quarter. Continuum Advisory LLC bought a new stake in Commerce Bancshares during the 2nd quarter worth approximately $64,000. Finally, Northwestern Mutual Wealth Management Co. bought a new stake in Commerce Bancshares during the second quarter worth $93,000. Institutional investors and hedge funds own 70.26% of the company's stock.

About Commerce Bancshares

Commerce Bancshares, Inc is a financial holding company headquartered in Kansas City, Missouri. Founded in 1865, the company operates Commerce Bank, which provides banking and related financial services to individuals, businesses, institutions and government entities.

Commerce Bank offers deposit accounts, consumer and commercial lending, mortgages, treasury and payment services, credit cards, investment management, trust services and institutional banking solutions. Its businesses also include capital markets and brokerage services, supporting corporate, municipal and institutional clients.

The bank serves customers primarily through a regional network spanning Missouri, Kansas, Illinois, Oklahoma and Colorado, along with digital banking channels.

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