Commerce Bancshares, Inc. (CBSH) Cut to “Hold” at Zacks Investment Research

Zacks Investment Research lowered shares of Commerce Bancshares, Inc. (NASDAQ:CBSH) from a buy rating to a hold rating in a report issued on Monday.

According to Zacks, “Shares of Commerce Bancshares have outperformed the industry in the past six months. The performance was supported by the company’s impressive earnings surprise history. It surpassed the Zacks Consensus Estimate for earnings in three of the trailing four quarters. The bank's efforts to expand its footprint in newer markets and an improving rate scenario are projected to boost revenues further. Also, strong loan and deposit growth should support its profitability. However, rising expenses are likely to curb bottom line growth. Also, significant exposure to real estate loans remains a major near-term concern, which might hurt the company’s financials.”

Other analysts also recently issued research reports about the company. Stephens restated an equal weight rating and set a $56.00 price objective (up previously from $52.00) on shares of Commerce Bancshares in a report on Monday, July 17th. Barclays PLC reaffirmed an equal weight rating and set a $54.00 target price (down previously from $55.00) on shares of Commerce Bancshares in a research note on Wednesday, July 12th. BidaskClub raised Commerce Bancshares from a sell rating to a hold rating in a research note on Wednesday, July 5th. Jefferies Group LLC reaffirmed a hold rating and set a $61.00 target price on shares of Commerce Bancshares in a research note on Sunday, June 11th. Finally, Piper Jaffray Companies reaffirmed a hold rating and set a $52.00 target price on shares of Commerce Bancshares in a research note on Friday, July 14th. Five equities research analysts have rated the stock with a sell rating and six have given a hold rating to the company. Commerce Bancshares has a consensus rating of Hold and a consensus price target of $55.25.

Shares of Commerce Bancshares (CBSH) opened at 56.40 on Monday. The firm has a market capitalization of $5.73 billion, a PE ratio of 20.43 and a beta of 0.82. Commerce Bancshares has a 1-year low of $47.64 and a 1-year high of $60.61. The firm’s 50 day moving average is $55.42 and its 200 day moving average is $55.91.

Commerce Bancshares (NASDAQ:CBSH) last posted its quarterly earnings data on Thursday, July 13th. The financial services provider reported $0.75 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.70 by $0.05. The firm had revenue of $305.89 million for the quarter, compared to the consensus estimate of $309.44 million. Commerce Bancshares had a return on equity of 12.01% and a net margin of 23.79%. The business’s revenue for the quarter was up 6.1% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.70 EPS. Analysts anticipate that Commerce Bancshares will post $2.94 EPS for the current fiscal year.

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The firm also recently announced a quarterly dividend, which will be paid on Monday, September 25th. Shareholders of record on Friday, September 8th will be paid a dividend of $0.225 per share. The ex-dividend date is Thursday, September 7th. This represents a $0.90 annualized dividend and a yield of 1.60%. Commerce Bancshares’s dividend payout ratio (DPR) is presently 32.64%.

In related news, insider Jeffery D. Aberdeen sold 687 shares of the business’s stock in a transaction that occurred on Tuesday, July 25th. The stock was sold at an average price of $59.09, for a total value of $40,594.83. Following the completion of the sale, the insider now owns 40,232 shares of the company’s stock, valued at approximately $2,377,308.88. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, Chairman David W. Kemper sold 10,132 shares of the business’s stock in a transaction that occurred on Friday, July 21st. The shares were sold at an average price of $57.83, for a total value of $585,933.56. Following the completion of the sale, the chairman now directly owns 1,270,757 shares of the company’s stock, valued at approximately $73,487,877.31. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 20,819 shares of company stock worth $1,174,728. Company insiders own 4.30% of the company’s stock.

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Public Employees Retirement Association of Colorado grew its stake in shares of Commerce Bancshares by 0.3% in the 2nd quarter. Public Employees Retirement Association of Colorado now owns 12,520 shares of the financial services provider’s stock valued at $712,000 after buying an additional 42 shares in the last quarter. M&T Bank Corp grew its stake in shares of Commerce Bancshares by 1.0% in the 2nd quarter. M&T Bank Corp now owns 6,179 shares of the financial services provider’s stock valued at $351,000 after buying an additional 62 shares in the last quarter. Teacher Retirement System of Texas grew its stake in shares of Commerce Bancshares by 1.4% in the 2nd quarter. Teacher Retirement System of Texas now owns 7,354 shares of the financial services provider’s stock valued at $418,000 after buying an additional 103 shares in the last quarter. WFG Advisors LP grew its stake in shares of Commerce Bancshares by 2.8% in the 1st quarter. WFG Advisors LP now owns 3,939 shares of the financial services provider’s stock valued at $221,000 after buying an additional 109 shares in the last quarter. Finally, World Asset Management Inc grew its stake in shares of Commerce Bancshares by 2.1% in the 1st quarter. World Asset Management Inc now owns 5,418 shares of the financial services provider’s stock valued at $304,000 after buying an additional 112 shares in the last quarter. 62.20% of the stock is owned by institutional investors and hedge funds.

About Commerce Bancshares

Commerce Bancshares, Inc is a bank holding company of Commerce Bank (the Bank). The Bank is engaged in general banking business, providing a range of retail, mortgage banking, corporate, investment, trust and asset management products and services to individuals and businesses. The Company operates through three segments: Consumer, Commercial and Wealth.

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