Bank of America Corp DE Makes New $83.33 Million Investment in Commerce Bancshares, Inc. $CBSH

Key Points

• Bank of America acquired 1.44 million shares of Commerce Bancshares during the second quarter, valued at approximately $83.3 million and representing a 1.01% stake. Institutional investors collectively own 70.26% of CBSH.
• Commerce Bancshares exceeded quarterly expectations, reporting $1.10 EPS versus the $1.04 consensus and revenue of $498.91 million versus $492.22 million expected.
• The company declared a quarterly dividend of $0.275 per share, or $1.10 annualized, yielding about 1.9%. Analysts maintain a consensus “Hold” rating with an average price target of $64.86.

Bank of America Corp DE acquired a new stake in Commerce Bancshares, Inc. (NASDAQ:CBSH - Free Report) during the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm acquired 1,442,908 shares of the financial services provider's stock, valued at approximately $83,328,000. Bank of America Corp DE owned approximately 1.01% of Commerce Bancshares at the end of the most recent quarter.

A number of other large investors have also recently made changes to their positions in CBSH. Apriem Advisors boosted its stake in Commerce Bancshares by 5.0% during the 4th quarter. Apriem Advisors now owns 4,018 shares of the financial services provider's stock valued at $210,000 after purchasing an additional 191 shares during the last quarter. Outlook Wealth Advisors LLC lifted its holdings in shares of Commerce Bancshares by 3.7% in the fourth quarter. Outlook Wealth Advisors LLC now owns 5,934 shares of the financial services provider's stock valued at $311,000 after purchasing an additional 214 shares in the last quarter. MTM Investment Management LLC lifted its holdings in shares of Commerce Bancshares by 0.3% in the first quarter. MTM Investment Management LLC now owns 88,242 shares of the financial services provider's stock valued at $4,342,000 after purchasing an additional 281 shares in the last quarter. Root Financial Partners LLC boosted its position 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. Finally, EverSource Wealth Advisors LLC boosted its position in shares of Commerce Bancshares by 2.9% during the first quarter. EverSource Wealth Advisors LLC now owns 12,360 shares of the financial services provider's stock valued at $608,000 after buying an additional 348 shares during the last quarter. 70.26% of the stock is owned by institutional investors.

Commerce Bancshares Price Performance

CBSH opened at $57.09 on Friday. The firm has a market cap of $8.19 billion, a P/E ratio of 13.82, a PEG ratio of 2.03 and a beta of 0.58. The firm has a 50-day moving average of $58.73 and a 200 day moving average of $54.46. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.82 and a current ratio of 0.82. Commerce Bancshares, Inc. has a fifty-two week low of $46.99 and a fifty-two week high of $60.92.

Commerce Bancshares (NASDAQ:CBSH - Get Free Report) last released its earnings results on Thursday, July 16th. The financial services provider reported $1.10 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.04 by $0.06. Commerce Bancshares had a return on equity of 14.31% and a net margin of 26.07%.The business had revenue of $498.91 million during the quarter, compared to the consensus estimate of $492.22 million. During the same period last year, the business posted $1.14 earnings per share. On average, research analysts expect that Commerce Bancshares, Inc. will post 4.25 EPS for the current year.

Commerce Bancshares Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 22nd. Shareholders of record on Friday, September 4th will be given a dividend of $0.275 per share. This represents a $1.10 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date is Friday, September 4th. Commerce Bancshares's dividend payout ratio (DPR) is currently 26.63%.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on the company. Wall Street Zen raised Commerce Bancshares from a "sell" rating to a "hold" rating in a research report on Tuesday, July 28th. Stephens set a $64.00 price objective on shares of Commerce Bancshares and gave the stock an "equal weight" rating in a report on Friday, July 17th. Wells Fargo & Company set a $63.00 target price on shares of Commerce Bancshares and gave the stock an "equal weight" rating in a research note on Monday, August 10th. Keefe, Bruyette & Woods increased their target price on shares of Commerce Bancshares from $60.00 to $62.00 and gave the company a "market perform" rating in a report on Monday, July 20th. Finally, Weiss Ratings raised shares of Commerce Bancshares from a "buy (b-)" rating to a "buy (b)" rating in a research report on Wednesday. Three analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $64.86.

Insider Transactions at Commerce Bancshares

In related news, SVP Derrick Brooks sold 1,041 shares of the firm's stock in a transaction that occurred on Tuesday, July 28th. The shares were sold at an average price of $59.63, for a total value of $62,074.83. Following the completion of the transaction, the senior vice president directly owned 13,117 shares of the company's stock, valued at approximately $782,166.71. This trade represents a 7.35% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Douglas Neff sold 666 shares of Commerce Bancshares stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $58.15, for a total transaction of $38,727.90. Following the completion of the transaction, the senior vice president owned 11,746 shares of the company's stock, valued at $683,029.90. This represents a 5.37% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 32,950 shares of company stock valued at $1,963,777. 1.80% of the stock is currently owned by insiders.

Commerce Bancshares Company Profile

Commerce Bancshares, Inc is a financial services holding company headquartered in Kansas City, Missouri. Through its principal subsidiary, Commerce Bank, the company provides banking and financial services to individuals, businesses, institutions and government entities.

Commerce Bank offers deposit accounts, consumer and commercial lending, treasury and payment services, wealth management, trust services, investment banking and brokerage services. Its commercial banking activities include financing, cash-management solutions and other services designed for businesses and institutional clients.

Founded in 1865, Commerce Bancshares primarily serves customers through a regional network centered in Missouri and extending into Kansas, Illinois, Oklahoma and Colorado.

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