Commerce Bancshares Inc. (NASDAQ:CBSH) Executive Vice President John K. Handy recently engaged in a series of transactions involving the company's common stock. On September 4, 2024, Handy sold 1,331 shares at a price of $63.80 each, totaling approximately $84,917.
In addition to the sale, Handy also acquired shares through option exercises on the same day. He exercised options for 7,312 shares with prices ranging between $43.9894 and $47.5287, amounting to a total value of $342,819. These transactions indicate an active management of Handy's investment in the company.
Furthermore, Handy disposed of 5,368 shares due to a transaction coded as "D" at a price of $63.87 per share, resulting in a total value of $342,854. Another disposal coded as "F" involved 613 shares at the same price, with a total value of $39,152.
It should be noted that the transactions also included indirect ownership by Handy's immediate family members. Following the transactions, the number of shares owned by Handy's daughter, son, and spouse are 1,795, 2,392, and 9,211 respectively.
Investors and followers of Commerce Bancshares Inc. may view these transactions as part of the executive's portfolio management strategy. The sale and acquisition of shares by company insiders are common practices and can be influenced by a variety of factors, including personal financial planning and diversification.
Commerce Bancshares Inc., headquartered in Kansas City, Missouri, operates as a state commercial bank and provides a range of financial services. The company's stock is publicly traded, and these transactions are reported in compliance with SEC regulations.
The reported transactions are part of the regular disclosure of stock dealings by company executives and are detailed in the latest SEC Form 4 filing by John K. Handy.
In other recent news, Commerce Bancshares, Inc. reported strong Q2 2024 earnings and revenue results, outpacing analyst projections. Earnings for the quarter were $1.07 per share, $0.13 higher than the analyst estimate, and revenue came in at $414.49 million, surpassing the consensus estimate of $403.85 million. These figures mark a significant increase from the same quarter last year and the first quarter of 2024.
In other developments, the company's CEO, John Kemper (NYSE:KMPR), credited the robust performance to an expanding net interest margin, solid fee income, and well-controlled expenses. The bank also maintained strong capital and liquidity levels, with excellent credit quality across its loan portfolio. During the quarter, Commerce Bancshares made a sizable community investment by contributing $5.0 million to the Commerce Bancshares Foundation.
Analysts note that the bank's average loan balances saw a slight increase of 0.6% compared to the prior quarter, totaling $17.2 billion. The bank's return on average assets was 1.86%, and the return on average equity was 18.52% for the quarter. These figures underscore Commerce Bancshares' effective asset and equity management strategies. These are among the recent developments for Commerce Bancshares.
InvestingPro Insights
Commerce Bancshares Inc. (NASDAQ:CBSH) has demonstrated financial resilience and consistency, as evidenced by the company's ability to maintain dividend payments for an impressive 54 consecutive years. This remarkable track record is further bolstered by a history of raising its dividend for the past 10 years, showcasing a commitment to returning value to shareholders. These attributes are reflected in the company's current dividend yield of 1.73%, with a 5.0% dividend growth in the last twelve months as of Q2 2024.
The company's stock has also seen a strong return over the last three months, with a price total return of 15.25%. This performance is part of a broader trend of positive returns, with a 6-month price total return of 18.64% and a year-to-date return of 18.32%. Such robust returns could be indicative of investor confidence and a positive market outlook for Commerce Bancshares.
Analyzing the company's valuation metrics, the price-to-earnings (P/E) ratio as of Q2 2024 stands at 16.33, which offers a perspective on the company's earnings relative to its share price. With 7 analysts having revised their earnings upwards for the upcoming period, this ratio may provide investors with a sense of the company's potential for sustained profitability.
For investors seeking more detailed analysis and additional InvestingPro Tips on Commerce Bancshares Inc., there are currently 8 tips available at InvestingPro. These tips offer deeper insights into the company's financial health and future prospects, helping to inform investment decisions.
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