Zacks Investment Research Downgrades Commerce Bancshares, Inc. (CBSH) to Hold

Commerce Bancshares, Inc. (NASDAQ:CBSH) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Monday.

According to Zacks, “Shares of Commerce Bancshares have marginally underperformed the industry in the past three months. Nonetheless, the company’s earnings surpassed the Zacks Consensus Estimate 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, continuously rising expenses are expected to hurt bottom-line growth. Further, the company’s significant exposure to real estate loans remains a major near-term concern.”

Several other research analysts have also recently weighed in on CBSH. Jefferies Group LLC reaffirmed a “hold” rating and issued a $61.00 price target on shares of Commerce Bancshares in a report on Sunday, June 11th. Keefe, Bruyette & Woods reaffirmed a “sell” rating and issued a $46.00 price target on shares of Commerce Bancshares in a report on Monday, June 12th. BidaskClub raised shares of Commerce Bancshares from a “sell” rating to a “hold” rating in a report on Tuesday, June 13th. Barclays PLC reaffirmed an “equal weight” rating and issued a $54.00 price target (down previously from $55.00) on shares of Commerce Bancshares in a report on Wednesday, July 12th. Finally, Wells Fargo & Company reaffirmed a “market perform” rating and issued a $53.00 price target (up previously from $51.00) on shares of Commerce Bancshares in a report on Friday, July 14th. Five investment analysts have rated the stock with a sell rating and six have issued a hold rating to the company’s stock. The stock currently has a consensus rating of “Hold” and an average price target of $56.63.

Shares of Commerce Bancshares (NASDAQ:CBSH) opened at 58.44 on Monday. The firm has a market capitalization of $5.94 billion, a PE ratio of 21.17 and a beta of 0.83. Commerce Bancshares has a 52-week low of $47.64 and a 52-week high of $60.61. The stock has a 50 day moving average price of $55.81 and a 200-day moving average price of $55.94.

Commerce Bancshares (NASDAQ:CBSH) last released its quarterly earnings results on Thursday, July 13th. The financial services provider reported $0.75 earnings per share for the quarter, topping the consensus estimate of $0.70 by $0.05. The firm had revenue of $305.89 million for the quarter, compared to analysts’ expectations of $309.44 million. Commerce Bancshares had a net margin of 23.79% and a return on equity of 12.01%. The business’s quarterly revenue was up 6.1% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.70 earnings per share. Equities analysts forecast that Commerce Bancshares will post $2.94 EPS for the current year.

TRADEMARK VIOLATION NOTICE: This piece was first posted by The Ledger Gazette and is owned by of The Ledger Gazette. If you are reading this piece on another publication, it was illegally copied and reposted in violation of U.S. & international trademark & copyright law. The legal version of this piece can be viewed at https://ledgergazette.com/2017/10/11/zacks-investment-research-downgrades-commerce-bancshares-inc-cbsh-to-hold-2.html.

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

A number of institutional investors and hedge funds have recently added to or reduced their stakes in CBSH. BlackRock Inc. increased its stake in Commerce Bancshares by 5,297.5% in the first quarter. BlackRock Inc. now owns 7,509,842 shares of the financial services provider’s stock valued at $421,752,000 after acquiring an additional 7,370,707 shares during the last quarter. Lazard Asset Management LLC bought a new position in Commerce Bancshares in the first quarter valued at $64,025,000. Nuance Investments LLC increased its stake in Commerce Bancshares by 814.4% in the second quarter. Nuance Investments LLC now owns 955,417 shares of the financial services provider’s stock valued at $54,296,000 after acquiring an additional 850,930 shares during the last quarter. Vanguard Group Inc. increased its stake in Commerce Bancshares by 10.4% in the first quarter. Vanguard Group Inc. now owns 8,353,057 shares of the financial services provider’s stock valued at $469,107,000 after acquiring an additional 785,218 shares during the last quarter. Finally, AQR Capital Management LLC increased its stake in Commerce Bancshares by 41.1% in the first quarter. AQR Capital Management LLC now owns 1,233,144 shares of the financial services provider’s stock valued at $69,254,000 after acquiring an additional 359,363 shares during the last quarter. 62.20% of the stock is currently owned by institutional investors and hedge funds.

Commerce Bancshares Company Profile

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

According to Zacks, “Shares of Commerce Bancshares have marginally underperformed the industry in the past three months. Nonetheless, the company’s earnings surpassed the Zacks Consensus Estimate 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, continuously rising expenses are expected to hurt bottom-line growth. Further, the company’s significant exposure to real estate loans remains a major near-term concern.”

Several other research analysts have also recently weighed in on CBSH. Jefferies Group LLC reaffirmed a “hold” rating and issued a $61.00 price target on shares of Commerce Bancshares in a report on Sunday, June 11th. Keefe, Bruyette & Woods reaffirmed a “sell” rating and issued a $46.00 price target on shares of Commerce Bancshares in a report on Monday, June 12th. BidaskClub raised shares of Commerce Bancshares from a “sell” rating to a “hold” rating in a report on Tuesday, June 13th. Barclays PLC reaffirmed an “equal weight” rating and issued a $54.00 price target (down previously from $55.00) on shares of Commerce Bancshares in a report on Wednesday, July 12th. Finally, Wells Fargo & Company reaffirmed a “market perform” rating and issued a $53.00 price target (up previously from $51.00) on shares of Commerce Bancshares in a report on Friday, July 14th. Five investment analysts have rated the stock with a sell rating and six have issued a hold rating to the company’s stock. The stock currently has a consensus rating of “Hold” and an average price target of $56.63.

Shares of Commerce Bancshares (NASDAQ:CBSH) opened at 58.44 on Monday. The firm has a market capitalization of $5.94 billion, a PE ratio of 21.17 and a beta of 0.83. Commerce Bancshares has a 52-week low of $47.64 and a 52-week high of $60.61. The stock has a 50 day moving average price of $55.81 and a 200-day moving average price of $55.94.

Commerce Bancshares (NASDAQ:CBSH) last released its quarterly earnings results on Thursday, July 13th. The financial services provider reported $0.75 earnings per share for the quarter, topping the consensus estimate of $0.70 by $0.05. The firm had revenue of $305.89 million for the quarter, compared to analysts’ expectations of $309.44 million. Commerce Bancshares had a net margin of 23.79% and a return on equity of 12.01%. The business’s quarterly revenue was up 6.1% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.70 earnings per share. Equities analysts forecast that Commerce Bancshares will post $2.94 EPS for the current year.

TRADEMARK VIOLATION NOTICE: This piece was first posted by The Ledger Gazette and is owned by of The Ledger Gazette. If you are reading this piece on another publication, it was illegally copied and reposted in violation of U.S. & international trademark & copyright law. The legal version of this piece can be viewed at https://ledgergazette.com/2017/10/11/zacks-investment-research-downgrades-commerce-bancshares-inc-cbsh-to-hold-2.html.

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

A number of institutional investors and hedge funds have recently added to or reduced their stakes in CBSH. BlackRock Inc. increased its stake in Commerce Bancshares by 5,297.5% in the first quarter. BlackRock Inc. now owns 7,509,842 shares of the financial services provider’s stock valued at $421,752,000 after acquiring an additional 7,370,707 shares during the last quarter. Lazard Asset Management LLC bought a new position in Commerce Bancshares in the first quarter valued at $64,025,000. Nuance Investments LLC increased its stake in Commerce Bancshares by 814.4% in the second quarter. Nuance Investments LLC now owns 955,417 shares of the financial services provider’s stock valued at $54,296,000 after acquiring an additional 850,930 shares during the last quarter. Vanguard Group Inc. increased its stake in Commerce Bancshares by 10.4% in the first quarter. Vanguard Group Inc. now owns 8,353,057 shares of the financial services provider’s stock valued at $469,107,000 after acquiring an additional 785,218 shares during the last quarter. Finally, AQR Capital Management LLC increased its stake in Commerce Bancshares by 41.1% in the first quarter. AQR Capital Management LLC now owns 1,233,144 shares of the financial services provider’s stock valued at $69,254,000 after acquiring an additional 359,363 shares during the last quarter. 62.20% of the stock is currently owned by institutional investors and hedge funds.

Commerce Bancshares Company Profile

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.

Analyst Recommendations for Commerce Bancshares (NASDAQ:CBSH)

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