Commerce Bancshares (NASDAQ:CBSH) Releases Quarterly Earnings Results, Beats Expectations By $0.06 EPS

Commerce Bancshares (NASDAQ:CBSH) announced its quarterly earnings results on Thursday. The financial services provider reported $1.10 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.04 by $0.06, Zacks reports. The company had revenue of $498.91 million for the quarter, compared to analyst estimates of $492.22 million. Commerce Bancshares had a net margin of 26.37% and a return on equity of 14.78%. During the same period in the previous year, the firm posted $1.14 EPS.

Commerce Bancshares Stock Performance

CBSH stock opened at $59.40 on Friday. The firm has a fifty day moving average price of $54.69 and a 200 day moving average price of $52.77. Commerce Bancshares has a fifty-two week low of $46.99 and a fifty-two week high of $62.42. The firm has a market cap of $8.66 billion, a PE ratio of 14.24, a price-to-earnings-growth ratio of 2.98 and a beta of 0.58.

Commerce Bancshares Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 23rd. Shareholders of record on Friday, June 5th were issued a dividend of $0.275 per share. This represents a $1.10 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date of this dividend was Friday, June 5th. Commerce Bancshares’s dividend payout ratio (DPR) is 26.38%.

Key Headlines Impacting Commerce Bancshares

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

• Positive Sentiment: Commerce Bancshares beat second-quarter earnings and revenue estimates, helped by stronger margin performance and loan growth. Commerce Bancshares tops second-quarter expectations on stronger margin and loan growth (CBSH)
• Positive Sentiment: The company reported higher net income year over year and quarter over quarter, suggesting improving profitability trends. Commerce Bancshares, Inc. Reports Second Quarter Earnings Per Share of $1.10
• Neutral Sentiment: Stephens initiated coverage with an equal weight rating and a $62 price target, implying modest upside but not a strong bullish call.
• Neutral Sentiment: One analyst note said the company’s solid quarter is offset by valuation concerns tied to excess capital, which may temper enthusiasm despite the earnings beat. Commerce Bancshares: Solid Q2, But Excess Capital Is Reflected In Valuation (Rating Downgrade)

Analysts Set New Price Targets

A number of equities research analysts recently commented on CBSH shares. Weiss Ratings raised shares of Commerce Bancshares from a “hold (c)” rating to a “hold (c+)” rating in a report on Wednesday, July 8th. Morgan Stanley reaffirmed a “positive” rating and set a $65.00 price objective (up from $61.00) on shares of Commerce Bancshares in a report on Monday, June 29th. Wells Fargo & Company raised their price objective on Commerce Bancshares from $53.00 to $57.00 and gave the company an “equal weight” rating in a research note on Monday, July 6th. Stephens began coverage on Commerce Bancshares in a research note on Wednesday. They issued an “equal weight” rating and a $62.00 target price for the company. Finally, TD Cowen restated a “hold” rating and set a $54.00 target price (up from $53.00) on shares of Commerce Bancshares in a report on Thursday, April 23rd. Two equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat.com, Commerce Bancshares has a consensus rating of “Hold” and a consensus target price of $59.14.

Institutional Investors Weigh In On Commerce Bancshares

Hedge funds have recently modified their holdings of the business. Geneos Wealth Management Inc. raised its stake in shares of Commerce Bancshares by 85.4% during the 1st quarter. Geneos Wealth Management Inc. now owns 469 shares of the financial services provider’s stock worth $29,000 after acquiring an additional 216 shares in the last quarter. Invesco Ltd. raised its holdings in shares of Commerce Bancshares by 2.0% during the second quarter. Invesco Ltd. now owns 865,052 shares of the financial services provider’s stock worth $53,780,000 after purchasing an additional 16,610 shares during the last quarter. Cresset Asset Management LLC grew its holdings in Commerce Bancshares by 3.0% during the second quarter. Cresset Asset Management LLC now owns 10,151 shares of the financial services provider’s stock worth $631,000 after acquiring an additional 300 shares during the period. Jump Financial LLC acquired a new position in shares of Commerce Bancshares in the 2nd quarter valued at $376,000. Finally, California Public Employees Retirement System increased its holdings in Commerce Bancshares by 4.8% in the second quarter. California Public Employees Retirement System now owns 208,148 shares of the financial services provider’s stock valued at $12,941,000 after buying an additional 9,483 shares in the last quarter. Hedge funds and other institutional investors own 70.26% of the company’s stock.

Commerce Bancshares Company Profile

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.