On June 11, 2023, it was reported that Renaissance Technologies LLC had increased its stake in Commerce Bancshares, Inc. (NASDAQ:CBSH) by a whopping 366.5% during the 4th quarter of the previous year. Recent data from the Securities & Exchange Commission showed that the institutional investor now owns 260,734 shares of the financial services provider’s stock, which is worth $17,748,000 as of the end of Q4.
This move comes after Commerce Bancshares (NASDAQ:CBSH) posted impressive quarterly earnings results on April 18th. The company reported $0.95 earnings per share for Q1, beating analysts’ consensus estimates of $0.92 by $0.03 with revenue reaching $389.20 million for the quarter compared to expectations of $389.46 million. These figures reveal a YoY surge with revenue being up by 14.3% while EPS rose to an impressive $0.03 from last year’s earnings report.
Commerce Bancshares operates as a bank holding company for Commerce Bank and offers various banking products and services such as retail, corporate, investment, trust and asset management products and services to individuals and businesses in the Consumer, Commercial and Wealth business segments.
With these recent developments, Commerce Bancshares is firmly cementing its position as one of the leading providers of financial services in the market today– whether through their continued focus on expanding their offerings or capitalizing on opportunities through strategic partnerships with institutional investors like Renaissance Technologies LLC who have shown confidence by increasing their stake in CBSH’s shares.
In conclusion, given what we know so far based on data from recent filings at SEC coupled with Commerce Bancshare’s impressive quarterly earnings report; we can expect that this rising star will continue gaining momentum in both growth potential but also attracting investments from institutions that see promise in CBSH stock performance moving forward especially when they are armed with valuable data on the company’s financial health.
Ownership Changes and Stock Performance of Commerce Bancshares
Commerce Bancshares, the bank holding company for Commerce Bank, has been experiencing some changes in its ownership structure. Institutional investors and hedge funds have either bought or sold stakes in the company. Pearl River Capital LLC raised their position by 46.3%, First Trust Advisors LP by 87.3%, Boothbay Fund Management LLC by 14.8%, Royal London Asset Management Ltd. by 104.4%, and lastly, Aviva PLC raised theirs by 3.1%. All these institutional investors and hedge funds combined hold a total of 64.12% of the company’s stock.
Despite such changes in the ownership structure of Commerce Bancshares, its performance remains positive as it recorded market capitalization of $6.36 billion with a PE ratio of 13.16 and beta of 0.75 upon opening at $51.01 on Friday at NASDAQ under the ticker symbol CBSH.
The company provides general banking services ranging from retail, corporate, investment to trust and asset management products and services for individuals as well as businesses through Consumer, Commercial and Wealth segments.
Commerce Bancshares recently announced its quarterly cash dividend payment amounting to $0.27 per share to be paid out on June 20th following an announcement on June 5th for record date holders with an expected annualized dividend yield rate of 2.12%.
Several analysts have shared their ratings and opinions regarding Commerce Bancshares’ performance thus far such as Keefe, Bruyette & Woods lowering their price target from $72 to $61 but giving it a “market perform” rating and The Street downgrading its rating from “b-“ to “c+”. Meanwhile, Morgan Stanley cut Commerce Bancshares’ rating down to “underweight” while StockNews.com gave it a sell rating followed by Wells Fargo Company lowering Commerce Bancshares’ price target from $65 to $60 and giving it an “equal weight” rating.
Overall, Commerce Bancshares remains a reputable company although there seems to be some uncertainty regarding its stock performance. With an evolving market and fluctuating prices, it is hard to predict if shares will rise or fall in the future. However, being backed by institutional investors and hedge funds should give shareholders comfort knowing their investment has support and potential for growth.