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KANSAS CITY - Commerce Bancshares, Inc. (NASDAQ:CBSH) announced Monday that its Board of Directors has approved the repurchase of up to 5 million shares of the company's common stock, including the remaining amount from its prior authorization in April 2024. The stock, currently trading at $52.37 with a P/E ratio of 12.47, appears undervalued according to InvestingPro analysis.
The Missouri-based regional bank holding company, which reported $32.3 billion in assets as of September 30 and maintains a market capitalization of approximately $7 billion, said repurchases may be executed through open market purchases, privately negotiated transactions or other methods compliant with applicable regulations.
The company emphasized that the timing and actual number of shares repurchased will depend on market conditions and other considerations, with purchases to be made at management's sole discretion. Commerce Bancshares noted that the program does not obligate the company to purchase any specific number of shares. The bank has maintained dividend payments for 55 consecutive years with a current yield of 2.09% and recent dividend growth of 6.94%. InvestingPro reveals several more financial insights about CBSH's performance.
According to the press release statement, the buyback program can be suspended, modified or terminated at any time without prior notice.
Commerce Bancshares operates banking facilities across the Midwest, including metropolitan areas such as St. Louis, Kansas City, Springfield, Wichita, Tulsa, Oklahoma City, and Denver. The company also maintains commercial offices in several major cities outside the Midwest region.
In other recent news, Commerce Bancshares reported third-quarter earnings of $1.06 per share, which fell short of analyst expectations of $1.10. Revenue for the quarter was $440.97 million, also missing the consensus estimate of $447.84 million. Following these results, TD Cowen lowered its price target for Commerce Bancshares to $61, citing higher loan loss provisions and lower net interest income. Similarly, Wells Fargo reduced its price target to $60, noting that both revenue and credit performance were below expectations. Piper Sandler also adjusted its price target to $63, pointing to a miss in net interest income and subsequently lowering its operating EPS estimates for 2025 and 2026.
In addition to these financial results, Commerce Bancshares declared a quarterly cash dividend of $0.275 per share, payable in December 2025. The board also approved a 5% common stock dividend to be distributed the same month. These developments provide investors with insights into the company's recent financial performance and strategic decisions.
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