Commerce Bancshares, Inc. (NASDAQ:CBSH) Receives Average Rating of “Reduce” from Analysts

Shares of Commerce Bancshares, Inc. (NASDAQ:CBSH) have been assigned an average recommendation of “Reduce” from the nine analysts that are covering the firm, MarketBeat reports. Two equities research analysts have rated the stock with a sell recommendation, six have issued a hold recommendation and one has given a buy recommendation to the company. The average 12-month price objective among brokerages that have issued ratings on the stock in the last year is $62.0340.

A number of analysts have recently issued reports on CBSH shares. Piper Sandler reissued a “neutral” rating and issued a $64.00 price target (up from $60.00) on shares of Commerce Bancshares in a research report on Friday, January 9th. Wall Street Zen downgraded shares of Commerce Bancshares from a “hold” rating to a “sell” rating in a research report on Saturday, October 18th. Keefe, Bruyette & Woods decreased their target price on shares of Commerce Bancshares from $61.90 to $57.14 and set a “market perform” rating for the company in a research note on Friday, October 17th. Zacks Research downgraded shares of Commerce Bancshares from a “hold” rating to a “strong sell” rating in a research note on Thursday, January 8th. Finally, Wells Fargo & Company cut their price objective on Commerce Bancshares from $61.90 to $57.14 and set an “equal weight” rating for the company in a report on Tuesday, October 21st.

Commerce Bancshares Trading Down 2.2%

Shares of CBSH stock opened at $53.21 on Friday. The company has a market capitalization of $7.05 billion, a price-to-earnings ratio of 12.70, a P/E/G ratio of 3.28 and a beta of 0.62. Commerce Bancshares has a 1-year low of $48.69 and a 1-year high of $65.59. The stock’s fifty day simple moving average is $52.68 and its 200-day simple moving average is $55.15.

Commerce Bancshares (NASDAQ:CBSH) last announced its quarterly earnings data on Thursday, January 22nd. The financial services provider reported $1.01 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.99 by $0.02. Commerce Bancshares had a return on equity of 15.51% and a net margin of 26.51%.The firm had revenue of $449.36 million during the quarter, compared to the consensus estimate of $442.47 million. During the same period in the prior year, the business earned $1.01 EPS. The business’s revenue for the quarter was up 6.5% on a year-over-year basis. On average, sell-side analysts predict that Commerce Bancshares will post 3.94 EPS for the current year.

Commerce Bancshares Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, December 15th. Stockholders of record on Tuesday, December 2nd were issued a dividend of $0.275 per share. This represents a $1.10 annualized dividend and a dividend yield of 2.1%. The ex-dividend date was Tuesday, December 2nd. Commerce Bancshares’s payout ratio is currently 26.25%.

Hedge Funds Weigh In On Commerce Bancshares

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Danske Bank A S bought a new position in shares of Commerce Bancshares in the 3rd quarter valued at approximately $25,000. Daytona Street Capital LLC acquired a new position in Commerce Bancshares during the fourth quarter valued at approximately $25,000. Geneos Wealth Management Inc. raised its position in shares of Commerce Bancshares by 85.4% in the first quarter. Geneos Wealth Management Inc. now owns 469 shares of the financial services provider’s stock valued at $29,000 after purchasing an additional 216 shares during the period. Quent Capital LLC bought a new position in shares of Commerce Bancshares in the third quarter valued at approximately $31,000. Finally, CoreFirst Bank & Trust acquired a new stake in shares of Commerce Bancshares in the second quarter worth $33,000. Institutional investors own 70.26% of the company’s stock.

Trending Headlines about Commerce Bancshares

Here are the key news stories impacting Commerce Bancshares this week:

• Positive Sentiment: Q4 results beat expectations: Commerce reported $1.01 EPS (above the $0.99 consensus) and record quarterly revenue driven by net interest income and fee income growth—evidence the core business is performing well. Commerce Bancshares, Inc. Reports Fourth Quarter Earnings Per Share of $1.01 (Press Release)
• Positive Sentiment: Record revenue and healthy margins: Revenue rose ~6.5% year-over-year with a net margin near 26.5% and ROE around 15.7%, supporting earnings power and dividend/buyback capacity. Commerce Bancshares beats Q4 expectations on record revenue
• Neutral Sentiment: Valuation/analyst context: Several write-ups note the stock’s lower price and relatively modest P/E (around 12.7), framing recent weakness as a potential buying opportunity if capital deployment and earnings trends continue. Is Commerce Bancshares (CBSH) Offering Value After Recent Share Price Weakness?
• Neutral Sentiment: Deeper metric review available: Analysts and coverage pieces compare key metrics to estimates and prior-year results to help investors assess sustainability of NII and fee trends versus credit trends. Compared to Estimates, Commerce (CBSH) Q4 Earnings: A Look at Key Metrics
• Negative Sentiment: Reserve build weighed on reaction: The stock dipped after the quarter because the bank increased credit loss provisions—investors worry higher reserves could pressure future profitability despite the revenue beat. CBSH Q4 Earnings Beat as Revenues Rise, Stock Dips on High Provisions

About Commerce Bancshares

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.