BlackRock Inc. Purchases New Holdings in Commerce Bancshares, Inc. $CBSH

Key Points

• BlackRock acquired 13.1 million shares of Commerce Bancshares in the second quarter, valued at approximately $755.7 million and representing an 8.98% stake. Institutional investors collectively own 70.26% of the company.
• Analysts maintain a generally cautious outlook, with a consensus “Hold” rating and an average price target of $63.29. Recent targets range from $62 to $65.
• Commerce Bancshares exceeded quarterly earnings expectations, reporting $1.10 EPS versus a $1.04 estimate and revenue of $498.91 million. The company also declared a quarterly dividend of $0.275 per share, representing a 1.9% yield.

BlackRock Inc. acquired a new stake in shares of Commerce Bancshares, Inc. (NASDAQ:CBSH - Free Report) in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm acquired 13,085,173 shares of the financial services provider's stock, valued at approximately $755,669,000. BlackRock Inc. owned approximately 8.98% of Commerce Bancshares as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently bought and sold shares of the company. Danske Bank A S bought a new stake in shares of Commerce Bancshares in the 3rd quarter valued at approximately $25,000. Geneos Wealth Management Inc. boosted its holdings in Commerce Bancshares by 85.4% in the first quarter. Geneos Wealth Management Inc. now owns 469 shares of the financial services provider's stock worth $29,000 after purchasing an additional 216 shares during the period. Root Financial Partners LLC lifted its position in shares of Commerce Bancshares by 104.9% in the 1st quarter. Root Financial Partners LLC now owns 623 shares of the financial services provider's stock worth $31,000 after buying an additional 319 shares during the last quarter. Laurel Wealth Advisors LLC acquired a new position in shares of Commerce Bancshares in the 4th quarter valued at about $34,000. Finally, Rothschild Investment LLC grew its position in shares of Commerce Bancshares by 75.3% during the 4th quarter. Rothschild Investment LLC now owns 1,031 shares of the financial services provider's stock valued at $54,000 after buying an additional 443 shares during the last quarter. 70.26% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several equities research analysts have commented on the stock. Wells Fargo & Company set a $63.00 price target on shares of Commerce Bancshares and gave the company an "equal weight" rating in a research note on Monday, August 10th. Keefe, Bruyette & Woods increased their price target on Commerce Bancshares from $60.00 to $62.00 and gave the stock a "market perform" rating in a research note on Monday, July 20th. Morgan Stanley reissued a "positive" rating and set a $65.00 price target (up from $61.00) on shares of Commerce Bancshares in a report on Monday, June 29th. Wall Street Zen upgraded shares of Commerce Bancshares from a "sell" rating to a "hold" rating in a research note on Tuesday, July 28th. Finally, Weiss Ratings upgraded shares of Commerce Bancshares from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday, July 21st. Three equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $63.29.

Insiders Place Their Bets

In related news, CEO John W. Kemper sold 5,830 shares of the business's stock in a transaction dated Wednesday, July 29th. The stock was sold at an average price of $60.58, for a total transaction of $353,181.40. Following the completion of the transaction, the chief executive officer owned 206,528 shares of the company's stock, valued at approximately $12,511,466.24. The trade was a 2.75% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Robert S. Holmes sold 5,000 shares of the company's stock in a transaction on Thursday, July 30th. The shares were sold at an average price of $60.20, for a total transaction of $301,000.00. Following the transaction, the executive vice president owned 55,962 shares of the company's stock, valued at approximately $3,368,912.40. The trade was a 8.20% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 32,484 shares of company stock valued at $1,936,055 in the last three months. Company insiders own 1.80% of the company's stock.

Commerce Bancshares Price Performance

Shares of NASDAQ:CBSH opened at $58.38 on Friday. 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 one year low of $46.99 and a one year high of $60.92. The company has a market capitalization of $8.37 billion, a PE ratio of 14.14, a price-to-earnings-growth ratio of 2.08 and a beta of 0.59. The stock has a fifty day moving average of $58.30 and a 200-day moving average of $53.84.

Commerce Bancshares (NASDAQ:CBSH - Get Free Report) last issued its quarterly earnings results on Thursday, July 16th. The financial services provider reported $1.10 earnings per share for the quarter, beating analysts' consensus estimates of $1.04 by $0.06. The business had revenue of $498.91 million for the quarter, compared to the consensus estimate of $492.22 million. Commerce Bancshares had a return on equity of 14.31% and a net margin of 26.07%.During the same quarter in the previous year, the company posted $1.14 earnings per share. As a group, equities analysts anticipate that Commerce Bancshares, Inc. will post 4.25 EPS for the current fiscal year.

Commerce Bancshares Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 22nd. Stockholders of record on Friday, September 4th will be paid a $0.275 dividend. This represents a $1.10 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date is Friday, September 4th. Commerce Bancshares's payout ratio is presently 26.63%.

Commerce Bancshares 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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