Zacks Investment Research Lowers Commerce Bancshares (CBSH) to Hold
Commerce Bancshares (NASDAQ:CBSH) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Tuesday.
According to Zacks, “Shares of Commerce Bancshares have outperformed the industry in the past six months. Also, the company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters. Impressive loans and deposit balances, higher interest rates and efforts to grow fee income will continue supporting revenue growth. Also, lower tax rates and easing of regulations will likely provide support to some extent. Further, its steady capital deployment activities reflect strong balance sheet position. However, continuously rising operating expenses are likely to hurt bottom-line growth to some extent. Moreover, the company's exposure to risky loan portfolios remains a major concern as it might hamper financials.”
Several other research analysts also recently commented on the stock. BidaskClub downgraded shares of Commerce Bancshares from a “buy” rating to a “hold” rating in a research note on Wednesday, August 1st. ValuEngine downgraded shares of Commerce Bancshares from a “buy” rating to a “hold” rating in a research note on Tuesday, October 2nd. Three analysts have rated the stock with a sell rating and ten have issued a hold rating to the company. Commerce Bancshares has a consensus rating of “Hold” and a consensus price target of $64.33.
Commerce Bancshares (NASDAQ:CBSH) last released its earnings results on Thursday, October 11th. The financial services provider reported $1.03 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.96 by $0.07. The firm had revenue of $331.47 million during the quarter, compared to analyst estimates of $330.91 million. Commerce Bancshares had a net margin of 30.97% and a return on equity of 15.56%. Equities analysts forecast that Commerce Bancshares will post 3.95 EPS for the current year.
In other Commerce Bancshares news, insider Jeffrey M. Burik sold 7,737 shares of the firm’s stock in a transaction dated Wednesday, October 31st. The shares were sold at an average price of $64.23, for a total transaction of $496,947.51. Following the transaction, the insider now owns 28,398 shares of the company’s stock, valued at approximately $1,824,003.54. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Jeffrey M. Burik sold 2,303 shares of the firm’s stock in a transaction dated Friday, November 2nd. The shares were sold at an average price of $65.02, for a total transaction of $149,741.06. Following the transaction, the insider now directly owns 18,358 shares in the company, valued at approximately $1,193,637.16. The disclosure for this sale can be found here. Insiders sold a total of 55,878 shares of company stock worth $3,917,540 in the last ninety days. 4.00% of the stock is currently owned by insiders.
A number of hedge funds and other institutional investors have recently bought and sold shares of CBSH. Citadel Advisors LLC increased its position in Commerce Bancshares by 3,463.9% during the 2nd quarter. Citadel Advisors LLC now owns 996,514 shares of the financial services provider’s stock valued at $64,484,000 after purchasing an additional 968,553 shares during the period. Schroder Investment Management Group increased its position in Commerce Bancshares by 34.1% during the 2nd quarter. Schroder Investment Management Group now owns 1,621,188 shares of the financial services provider’s stock valued at $72,468,000 after purchasing an additional 412,145 shares during the period. Findlay Park Partners LLP increased its position in Commerce Bancshares by 15.9% during the 2nd quarter. Findlay Park Partners LLP now owns 1,500,000 shares of the financial services provider’s stock valued at $97,065,000 after purchasing an additional 206,083 shares during the period. Robeco Institutional Asset Management B.V. increased its position in Commerce Bancshares by 9,859.6% during the 3rd quarter. Robeco Institutional Asset Management B.V. now owns 164,234 shares of the financial services provider’s stock valued at $10,843,000 after purchasing an additional 162,585 shares during the period. Finally, WINTON GROUP Ltd increased its position in Commerce Bancshares by 2,341.9% during the 2nd quarter. WINTON GROUP Ltd now owns 166,439 shares of the financial services provider’s stock valued at $10,770,000 after purchasing an additional 159,623 shares during the period. 63.09% of the stock is currently owned by institutional investors and hedge funds.
Commerce Bancshares Company Profile
Commerce Bancshares, Inc operates as the holding company for Commerce Bank that provides retail, mortgage banking, corporate, investment, trust, and asset management products and services to individuals and businesses. It operates through three segments: Consumer, Commercial, and Wealth. The Consumer segment offers various banking products and services, including consumer deposits; consumer loans, such as automobile, motorcycle, marine, tractor/trailer, recreational vehicle, fixed rate and revolving home equity, and other consumer loans; patient health care financing; real estate loans; indirect and other consumer financing; personal mortgage banking; consumer installment lending; and consumer debit and credit bank cards, as well as provides online, mobile, and telephone banking services.
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