The Employees Retirement System of Texas has made a notable investment in Commerce Bancshares, Inc. (NASDAQ: CBSH), acquiring 1,051 shares valued at approximately $65,000 during the second quarter of 2023. This strategic move highlights the growing interest from institutional investors in the financial services provider.
Several other significant stakeholders have also adjusted their positions in Commerce Bancshares recently. For instance, Cetera Investment Advisers increased its stake by 29.9% in the first quarter, bringing its total holdings to 74,660 shares, worth about $4.65 million. Additionally, HB Wealth Management LLC grew its position by 17.4%, acquiring 3,882 shares valued at $242,000. Other firms, such as LPL Financial LLC and XTX Topco Ltd, have also reported significant increases in their holdings, demonstrating a robust confidence in the company.
Institutional investors collectively own 70.26% of Commerce Bancshares’ stock, underscoring its appeal within the investment community.
Analyst Ratings and Market Performance
Recent evaluations by equity research analysts have led to mixed ratings for Commerce Bancshares. Zacks Research downgraded the stock from a “strong-buy” to a “hold” on August 27, 2023. Following this, Piper Sandler lowered its target price from $70.00 to $63.00, maintaining a “neutral” rating. Additionally, Wells Fargo & Company adjusted its price objective from $65.00 to $60.00 and set an “equal weight” rating for the firm.
Currently, one analyst has issued a Buy rating, while nine analysts recommend holding the stock, and one has assigned a Sell rating. According to data from MarketBeat, the average rating for Commerce Bancshares stands at “Hold,” with an average target price of $65.29.
As of now, CBSH stock opened at $53.91 and has a market capitalization of $7.14 billion. The stock has experienced a price-to-earnings (P/E) ratio of 12.87 and a price-to-earnings-growth (PEG) ratio of 4.71. Over the past year, the stock has fluctuated between a low of $51.12 and a high of $70.86. Furthermore, the stock is set to undergo a split on December 2, 2023, with a 1.05-for-1 split announced, effective after the market closes on December 1.
Recent Earnings and Dividend Announcement
On October 16, 2023, Commerce Bancshares released its quarterly earnings report, revealing earnings per share (EPS) of $1.06. This figure fell short of analysts’ expectations, which had anticipated an EPS of $1.09. The firm also reported revenue of $448.85 million, slightly surpassing the forecast of $447.04 million. The company achieved a net margin of 26.48% and a return on equity of 15.73%, with revenue reflecting a 4.7% increase compared to the same quarter last year.
In addition to its earnings report, Commerce Bancshares announced a quarterly dividend of $0.275, scheduled for payment on December 15, 2023. Shareholders of record on December 2 will receive this dividend, which represents an annualized dividend of $1.10 and a dividend yield of 2.0%. The company’s current dividend payout ratio stands at 26.25%.
Commerce Bancshares, Inc. operates as the bank holding company for Commerce Bank, providing a range of financial services, including retail, mortgage banking, corporate, investment, trust, and asset management products. The company is structured into three segments: Consumer, Commercial, and Wealth, catering to both individuals and businesses throughout the United States.
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