Commerce Bancshares (NASDAQ:CBSH) Announces Earnings Results

Commerce Bancshares (NASDAQ:CBSH) issued its quarterly earnings results on Tuesday. The financial services provider reported $1.08 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.07 by $0.01, Zacks reports. The firm had revenue of $494.34 million for the quarter, compared to analyst estimates of $496.75 million. Commerce Bancshares had a return on equity of 14.27% and a net margin of 26.06%. During the same period in the previous year, the company posted $1.06 earnings per share.

Commerce Bancshares Trading Down 0.8%

Commerce Bancshares stock opened at $55.14 on Thursday. The company has a market cap of $7.91 billion, a PE ratio of 13.29, a PEG ratio of 1.69 and a beta of 0.60. Commerce Bancshares has a 1 year low of $46.99 and a 1 year high of $60.92. The company’s 50-day moving average is $56.92 and its two-hundred day moving average is $55.50.

Commerce Bancshares Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 22nd. Investors of record on Friday, September 4th were given a $0.2750 dividend. This represents a $1.10 dividend on an annualized basis and a yield of 2.0%. The ex-dividend date was Friday, September 4th. Commerce Bancshares’s dividend payout ratio (DPR) is presently 26.63%.

Key Stories Impacting Commerce Bancshares

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

• Positive Sentiment: Third-quarter earnings were $1.08 per share, ahead of the $1.07 consensus estimate and up from $1.06 a year earlier. Net income rose to $155.0 million from $141.5 million, supported by the company’s diversified banking, investment-banking and wealth-services operations. Commerce Bancshares Third Quarter Earnings Release
• Positive Sentiment: Non-interest income increased $24.0 million year over year to $185.5 million, while non-interest expense declined $11.1 million from the prior quarter to $285.9 million. Average loans also grew by $172.3 million sequentially to $20.7 billion, indicating continued underlying loan demand. Commerce Bancshares Third Quarter Metrics
• Positive Sentiment: Commerce Bancshares repurchased approximately 1.9 million shares at an average price of $58.84, which should support per-share results and signals management’s willingness to return capital to shareholders. Commerce Bancshares Share Repurchases
• Neutral Sentiment: Management highlighted acquisitions that are expanding Commerce’s investment-banking and wealth-services capabilities, potentially improving revenue diversification over time. Commerce Bancshares Acquisitions and Third Quarter Results
• Negative Sentiment: Quarterly revenue of $494.3 million fell short of the $496.8 million analyst estimate and declined from $499.0 million in the second quarter. Net-interest income also decreased $6.2 million sequentially, while quarterly EPS fell from $1.10 in the prior quarter.
• Negative Sentiment: Recent insider activity was entirely weighted toward selling, with eight reported sales and no purchases over the past six months. Although insider transactions may reflect personal financial decisions, the pattern can weigh on investor sentiment. Commerce Bancshares Insider Trading Activity

Insider Transactions at Commerce Bancshares

In other Commerce Bancshares news, CFO Charles Kim sold 19,771 shares of the firm’s stock in a transaction that occurred on Monday, July 27th. The shares were sold at an average price of $59.18, for a total value of $1,170,047.78. Following the transaction, the chief financial officer directly owned 119,410 shares of the company’s stock, valued at approximately $7,066,683.80. This trade represents a 14.21% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP Derrick Brooks sold 1,041 shares of the firm’s stock in a transaction on Tuesday, July 28th. The stock was sold at an average price of $59.63, for a total value of $62,074.83. Following the completion of the transaction, the senior vice president owned 13,117 shares in the company, valued at $782,166.71. This represents a 7.35% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 32,950 shares of company stock valued at $1,963,777. 1.80% of the stock is currently owned by company insiders.

Analyst Ratings Changes

A number of brokerages have recently issued reports on CBSH. Keefe, Bruyette & Woods increased their price objective on shares of Commerce Bancshares from $60.00 to $62.00 and gave the company a “market perform” rating in a research note on Monday, July 20th. Wells Fargo & Company set a $61.00 target price on shares of Commerce Bancshares and gave the company an “equal weight” rating in a research report on Tuesday, September 29th. Weiss Ratings raised shares of Commerce Bancshares from a “buy (b-)” rating to a “buy (b)” rating in a research note on Friday, October 16th. Piper Sandler set a $60.50 price target on shares of Commerce Bancshares and gave the stock a “neutral” rating in a research report on Wednesday. Finally, Wall Street Zen upgraded shares of Commerce Bancshares from a “sell” rating to a “hold” rating in a research note on Sunday, October 11th. Three analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $63.64.

Commerce Bancshares Company Profile

Commerce Bancshares, Inc is a financial holding company headquartered in Kansas City, Missouri. Founded in 1865, the company operates Commerce Bank, which provides banking and related financial services to individuals, businesses, institutions and government entities.

Commerce Bank offers deposit accounts, consumer and commercial lending, mortgages, treasury and payment services, credit cards, investment management, trust services and institutional banking solutions. Its businesses also include capital markets and brokerage services, supporting corporate, municipal and institutional clients.

The bank serves customers primarily through a regional network spanning Missouri, Kansas, Illinois, Oklahoma and Colorado, along with digital banking channels.