Keefe, Bruyette & Woods Has Lowered Expectations for Commerce Bancshares (NASDAQ:CBSH) Stock Price

Key Points

• Keefe, Bruyette & Woods cut its price target on Commerce Bancshares to $54 (from $56) and kept a "market perform" rating, while several other brokers have trimmed targets leaving the consensus rating at Hold with an average target of $60.47.
• CBSH traded around $51.35 midday with a market cap of about $7.54 billion, a P/E of 12.26, and a 52-week range of $46.99–$63.19, indicating current valuation below the analyst average target.
• Commerce slightly beat quarterly estimates with $1.01 EPS vs. $0.99 and revenue up 6.5% year-over-year, while insider activity included a director buying shares and insiders selling ~29,477 shares in the past 90 days amid large institutional accumulations (e.g., Vanguard, Norges Bank).

Commerce Bancshares (NASDAQ:CBSH - Get Free Report) had its price target lowered by Keefe, Bruyette & Woods from $56.00 to $54.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The firm presently has a "market perform" rating on the financial services provider's stock. Keefe, Bruyette & Woods' target price would suggest a potential upside of 5.17% from the company's previous close.

Several other research firms have also recently weighed in on CBSH. Wells Fargo & Company cut their price target on shares of Commerce Bancshares from $60.00 to $53.00 and set an "equal weight" rating on the stock in a report on Monday, March 30th. Piper Sandler set a $62.00 price objective on Commerce Bancshares and gave the company a "neutral" rating in a research report on Monday, January 26th. Morgan Stanley cut their price objective on Commerce Bancshares from $67.00 to $65.00 and set an "equal weight" rating for the company in a report on Monday, March 2nd. TD Cowen reduced their price objective on Commerce Bancshares from $61.00 to $55.00 and set a "hold" rating for the company in a research note on Wednesday, January 7th. Finally, Zacks Research upgraded Commerce Bancshares from a "strong sell" rating to a "hold" rating in a research note on Wednesday, March 4th. One analyst has rated the stock with a Buy rating and eight have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $60.47.

Commerce Bancshares Price Performance

CBSH stock traded up $0.55 during mid-day trading on Thursday, reaching $51.35. 312,381 shares of the company traded hands, compared to its average volume of 1,310,364. The company has a market capitalization of $7.54 billion, a P/E ratio of 12.26, a P/E/G ratio of 2.50 and a beta of 0.60. The company has a fifty day moving average price of $51.10 and a 200-day moving average price of $52.26. 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 announced its earnings results on Thursday, January 22nd. The financial services provider reported $1.01 earnings per share for the quarter, topping analysts' consensus estimates of $0.99 by $0.02. The business had revenue of $449.36 million for the quarter, compared to analyst estimates of $442.47 million. Commerce Bancshares had a return on equity of 15.34% and a net margin of 26.51%.The company's quarterly revenue was up 6.5% compared to the same quarter last year. During the same period in the prior year, the company earned $1.01 EPS. As a group, analysts forecast that Commerce Bancshares will post 3.94 EPS for the current year.

Insider Activity

In other news, Director Timothy S. Dunn acquired 2,500 shares of the company's stock in a transaction on Friday, March 13th. The stock was bought at an average cost of $47.71 per share, with a total value of $119,275.00. Following the completion of the purchase, the director directly owned 5,403 shares of the company's stock, valued at $257,777.13. This represents a 86.12% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP Kim L. Jakovich sold 949 shares of Commerce Bancshares stock in a transaction on Thursday, March 5th. The stock was sold at an average price of $51.45, for a total transaction of $48,826.05. Following the transaction, the senior vice president directly owned 12,741 shares of the company's stock, valued at $655,524.45. The trade was a 6.93% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 29,477 shares of company stock worth $1,586,655. 1.80% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Commerce Bancshares

Several hedge funds and other institutional investors have recently modified their holdings of CBSH. Norges Bank purchased a new stake in shares of Commerce Bancshares during the fourth quarter valued at $85,282,000. Champlain Investment Partners LLC purchased a new position in shares of Commerce Bancshares in the 4th quarter valued at $58,830,000. Vanguard Group Inc. increased its position in shares of Commerce Bancshares by 8.1% during the fourth 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 in the last quarter. Victory Capital Management Inc. increased its position in shares of Commerce Bancshares by 1,433.7% during the fourth 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 in the last quarter. Finally, First Trust Advisors LP boosted its stake in 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 in the last quarter. 70.26% of the stock is currently owned by hedge funds and other institutional investors.

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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