Exploring Commerce Bancshares, Inc. (CBSH) Investor Profile: Who’s Buying and Why?

Have you ever wondered who the major players are behind Commerce Bancshares, Inc. (CBSH)? With institutional investors holding a significant 68% ownership, it's essential to understand who these key stakeholders are and what their investment decisions might signal. As of December 31, 2024, The Vanguard Group Inc. holds the largest chunk with 13.23 million shares, valued at $869,443,750, closely followed by Blackrock Inc. with 11.85 million shares. But what does this concentrated institutional ownership mean for the company's stability and future prospects? Let's delve into the details of CBSH's investor profile and uncover the motivations driving these investment choices.

Commerce Bancshares, Inc. (CBSH) Who Invests in [Company Name] and Why?

Understanding the investor profile of Commerce Bancshares, Inc. (CBSH) involves examining the various types of investors who hold the company's stock and their motivations for investing. This includes a breakdown of retail, institutional, and hedge fund investors, as well as their investment strategies and what attracts them to CBSH.

Key Investor Types:

The ownership of Commerce Bancshares, Inc. (CBSH) stock is distributed among various types of investors:

• Institutional Investors: These entities hold a significant portion of CBSH's shares. As of April 1, 2025, institutions possess the maximum shares in the company with a 71% stake. Major institutions include financial holdings companies, banks, insurance companies, mutual fund managers, portfolio managers, and self-managed pension and endowment funds. High institutional ownership indicates that the stock price may be sensitive to their trading actions.
• Retail Investors: Public companies and individual investors hold 25.42% of the shares.
• Insiders: Insiders hold 2.69% of the shares.

Significant Institutional Holders:

Several major institutions hold substantial positions in Commerce Bancshares:

• Aristotle Capital Management: Holds 8,566K shares, representing 6.40% ownership.
• Commerce Bank: Holds 4,645K shares, representing 3.47% ownership.
• IJH - iShares Core S&P Mid-Cap ETF: Holds 3,990K shares, representing 2.98% ownership.
• VTSMX - Vanguard Total Stock Market Index Fund Investor Shares: Holds 3,773K shares representing 2.82% ownership.
• American Century Companies: Holds 3,675K shares representing 2.74% ownership.

Investment Motivations:

Several factors attract investors to Commerce Bancshares, Inc. (CBSH):

• Consistent Dividend Growth: Commerce Bancshares has a strong track record of dividend increases. The company has been paying a 5% stock dividend over the past 25 years, with the most recent one announced in October 2024. It has increased its dividend seven times in the past five years with a dividend payout ratio of 27%.
• Financial Performance: In 2024, Commerce Bancshares's revenue was $1.63 billion, an increase of 5.16% compared to the previous year's $1.55 billion. Earnings were $521.42 million, an increase of 10.28%.
• Strong Liquidity Position: As of December 31, 2024, CBSH's total cash and cash equivalents were $3.4 billion.
• Balance Sheet Repositioning: In May 2024, the company announced a balance sheet repositioning strategy, selling debt securities and reinvesting the proceeds at higher yields, which is expected to bolster its net interest income (NII).
• Revenue Growth: Driven by growth in loan demand and fee income, Commerce Bancshares' total revenues witnessed a compound annual growth rate (CAGR) of 4.2% over the last five years (2019-2024).
• Earnings Growth: Commerce Bancshares witnessed earnings growth of 9.3% over the past three to five years, driven by organic growth, solid customer relationships, and strong risk management.
• Superior Return on Equity (ROE): CBSH's trailing 12-month ROE of 16.3% compares favorably with the industry average of 10.5%.
• Analyst Ratings: The average price target is $66.40 with a high forecast of $74.00 and a low forecast of $58.00. The average price target represents a 10.63% change from the last price of $60.02.

Investment Strategies:

Investors in Commerce Bancshares employ various strategies:

• Long-Term Holding: Many institutional investors adopt a long-term holding strategy, influenced by the company's consistent performance and dividend payouts.
• Value Investing: Value investors are attracted to CBSH's stable financial position and consistent earnings.
• Dividend Income: The company's history of dividend payments and increases makes it attractive to investors seeking regular income. The annual dividend is $1.10 per share. The dividend yield of Commerce Bancshares Inc is currently 1.84%.

Dividend Information:

Commerce Bancshares pays quarterly dividends, typically in March, June, September, and December. The next dividend is expected in June. The company has paid dividends every year for the last 10 years.

Financial Stability and Growth:

Commerce Bancshares is well-positioned for growth, driven by decent loan demand, relatively higher interest rates, and its balance sheet repositioning strategy. Solid liquidity and non-interest income growth further support its financials.

Revenue and Net Interest Income (NII):

CBSH's NII and loans reflected a CAGR of 4.8% and 2.2%, respectively, over the last five years. The company's net yield on interest-earning assets expanded to 3.47% in 2024 from 3.16% in 2023 and 2.85% in 2022, driven by higher rates.

Capital Distribution:

As of December 31, 2024, roughly 3.6 million shares remained available under the company's share repurchase plan. Given its earnings strength and strong liquidity, the company is expected to continue efficient capital distributions, enhancing shareholder value.

Analyst Outlook:

Based on 6 Wall Street analysts, the consensus rating for Commerce Bancshares is 'Hold.' The 12-month stock price forecast is $63.34, which represents an increase of 5.73% from the latest price.

For further insights into Commerce Bancshares, Inc., explore its Commerce Bancshares, Inc. (CBSH): History, Ownership, Mission, How It Works & Makes Money.

Commerce Bancshares, Inc. (CBSH) Institutional Ownership and Major Shareholders of Commerce Bancshares, Inc. (CBSH)

Institutional ownership in Commerce Bancshares, Inc. (CBSH) reflects the degree of confidence that large financial entities have in the company's financial health and growth potential. These institutions, which include mutual funds, pension funds, hedge funds, and insurance companies, manage substantial assets and conduct thorough research before investing. Their investment decisions can significantly influence CBSH's stock price and overall market stability.

As of March 31, 2024, the following were the top institutional holders of Commerce Bancshares, Inc. (CBSH):

• BlackRock Fund Advisors held 2,926,347 shares, representing 2.40% ownership.
• The Vanguard Group, Inc. held 8,767,781 shares, representing 7.18% ownership.
• Capital Research & Management Co. held 7,422,963 shares, representing 6.08% ownership.
• State Street Global Advisors, Inc. held 4,423,725 shares, representing 3.62% ownership.
• Geode Capital Management LLC held 1,791,576 shares, representing 1.47% ownership.

Examining changes in institutional ownership provides insights into the evolving sentiment of major investors toward Commerce Bancshares, Inc. (CBSH). Recent transactions and trends indicate how these large stakeholders are adjusting their positions, which can be a leading indicator of future stock performance.

Recent changes in ownership include:

• Allspring Global Investments Holdings, LLC increased its stake by 33.7% in the fourth quarter of 2023. After acquiring an additional 116,453 shares, their total holding reached 461,169 shares valued at $28.594 million.
• Victory Capital Management Inc. increased its stake by 18.0% in the fourth quarter of 2023. After acquiring an additional 20,705 shares, their total holding reached 135,648 shares valued at $8.409 million.
• Amalgamated Bank increased its stake by 8.9% in the fourth quarter of 2023. After acquiring an additional 3,704 shares, their total holding reached 45,409 shares valued at $2.817 million.
• Oregon Public Employees Retirement Fund decreased its stake by 1.5% in the fourth quarter of 2023. After selling 2,238 shares, their total holding amounted to 146,317 shares.
• Principal Financial Group Inc. decreased its stake by 3.8% in the fourth quarter of 2023. After selling 32,848 shares, their total holding amounted to 824,848 shares.

These changes reflect active portfolio management by institutional investors, responding to factors such as company performance, market conditions, and broader economic trends. Monitoring these shifts can provide valuable context for understanding the potential trajectory of Commerce Bancshares, Inc. (CBSH).

Institutional investors exert considerable influence over Commerce Bancshares, Inc. (CBSH) through several key mechanisms:

• Price Discovery: Large trades by institutional investors can drive price discovery, helping to align the stock's market value with its intrinsic value.
• Market Stability: Significant institutional holdings can reduce volatility by providing a stable investor base.
• Corporate Governance: Institutional investors often engage with company management on issues such as executive compensation, board composition, and strategic direction, promoting better governance and accountability.
• Liquidity: High institutional ownership generally increases trading volume, making it easier for other investors to buy and sell shares.

The table below summarizes the ownership data for key institutional investors in Commerce Bancshares, Inc. (CBSH) as of March 31, 2024:

Understanding the composition and activities of institutional investors in Commerce Bancshares, Inc. (CBSH) is crucial for assessing market sentiment and potential investment opportunities. These entities play a pivotal role in shaping the company's financial landscape.

To gain more insights into the values that drive Commerce Bancshares, Inc. (CBSH), explore: Mission Statement, Vision, & Core Values of Commerce Bancshares, Inc. (CBSH).

Commerce Bancshares, Inc. (CBSH) Key Investors and Their Impact on [Company Name]

Understanding the investor profile of Commerce Bancshares, Inc. (CBSH) provides valuable insights into the company's stability, growth potential, and strategic direction. Examining who holds significant stakes in CBSH, their recent activities, and potential influence can offer a clearer picture of the bank's future trajectory. Here's a breakdown of notable investors and their impact:

Notable Investors: Identifying key investors in Commerce Bancshares, Inc. (CBSH) involves looking at major institutional holders, mutual funds, and potentially significant individual investors. These entities often hold substantial shares, giving them considerable influence.

• Institutional Investors: These typically include large investment firms, pension funds, and insurance companies.
• Mutual Funds: Various mutual funds focusing on financial stocks or dividend-paying companies may hold significant positions in CBSH.

As of the fiscal year 2024, some of the top institutional holders of Commerce Bancshares, Inc. (CBSH) include:

• Vanguard Group: Known for its extensive index fund offerings, Vanguard often holds a significant percentage of publicly traded companies.
• BlackRock Fund Advisors: As one of the world's largest asset managers, BlackRock's holdings in CBSH are noteworthy.
• State Street Corporation: Another major institutional investor with substantial holdings in various companies.

Investor Influence: The influence of these investors can manifest in several ways:

• Voting Rights: Large shareholders have a significant say in company matters, including the election of board members and approval of major corporate actions.
• Market Sentiment: Major transactions by these investors can influence market sentiment, affecting the stock price.
• Engagement with Management: Large investors often engage with the company's management to discuss strategy, performance, and governance issues.

Recent Moves: Keeping track of recent buying or selling activity by major investors can provide clues about their confidence in the company's prospects. For example, a substantial increase in holdings by a well-regarded fund might signal positive expectations, while a significant sell-off could indicate concerns.

To provide a clearer picture, here's a hypothetical snapshot of institutional ownership percentages (as of 2024 data):

These percentages reflect the significant stakes held by these institutions, underscoring their potential influence on Commerce Bancshares, Inc. (CBSH).

For more insights into Commerce Bancshares, Inc. (CBSH), you might find this resource helpful: Commerce Bancshares, Inc. (CBSH): History, Ownership, Mission, How It Works & Makes Money

It is important to note that specific holdings and activities can change frequently, so referring to the most up-to-date financial data sources is crucial for accurate analysis.

Commerce Bancshares, Inc. (CBSH) Market Impact and Investor Sentiment

Understanding investor sentiment and market reactions is crucial for evaluating Commerce Bancshares, Inc. (CBSH). Recent activity and analyst perspectives provide valuable insights into the company's future.

Investor sentiment towards Commerce Bancshares, Inc. (CBSH) appears mixed, influenced by various factors including overall economic conditions, company performance, and broader market trends. Monitoring major shareholders' positions and their rationale can offer clues about the prevailing sentiment. For example, significant increases in holdings by institutional investors may suggest a positive outlook, while decreased positions might indicate concerns.

Recent market reactions to changes in ownership or large investor moves can significantly impact Commerce Bancshares, Inc. (CBSH)'s stock price.

• Positive reactions often follow announcements of increased stakes by reputable investors, reflecting confidence in the company's prospects.
• Conversely, negative reactions may occur when large investors reduce their positions, potentially signaling doubts about future performance.

Keeping track of these movements and their immediate effects on the stock price is essential for understanding market sentiment.

Analyst perspectives play a vital role in shaping investor sentiment and influencing market reactions. Analysts provide in-depth research and recommendations, offering insights into Commerce Bancshares, Inc. (CBSH)'s financial health, growth potential, and competitive positioning. These analyses often consider the impact of key investors on the company's future, assessing how their involvement might affect strategic decisions, corporate governance, and overall performance.

For example, analysts might comment on:

• The implications of a major investor pushing for changes in company strategy.
• The potential benefits or risks associated with significant investments made by large shareholders.
• The overall impact of key investors on Commerce Bancshares, Inc. (CBSH)'s long-term prospects.

Here's a look into the types of investors holding Commerce Bancshares, Inc. (CBSH) stock:

Institutional investors constitute a significant portion of Commerce Bancshares, Inc. (CBSH)'s shareholder base. These entities include mutual funds, pension funds, hedge funds, and insurance companies. Their investment decisions are often driven by rigorous research and analysis, reflecting a long-term perspective.

Some of the top institutional holders include:

• Vanguard Group Inc.
• BlackRock Fund Advisors
• State Street Global Advisors, Inc.
• Geode Capital Management, LLC
• Dimensional Fund Advisors LP

These major institutional investors hold substantial positions, reflecting their confidence in the company's value and growth prospects.

While institutional investors dominate, individual investors also hold shares in Commerce Bancshares, Inc. (CBSH). These retail investors may include company employees, retirees, or individuals seeking long-term investment opportunities. Their investment decisions are often influenced by personal financial goals and risk tolerance.

Understanding the composition of individual investors and their investment behavior can provide additional insights into market sentiment and potential stock price volatility.

The table below summarizes key aspects of Commerce Bancshares, Inc. (CBSH)'s investor profile:

Analyzing the trends in ownership, such as increases or decreases in holdings by major investors, can offer valuable signals about the stock's future performance. Monitoring these changes and understanding the underlying reasons can help investors make informed decisions.

Changes in institutional ownership can provide insights into the long-term prospects of Commerce Bancshares, Inc. (CBSH). An increase in institutional holdings may indicate growing confidence in the company's future, while a decrease could signal concerns about its performance. Tracking these changes over time can help investors assess the prevailing sentiment among sophisticated market participants.

Keep in mind that market dynamics and investor sentiment can shift rapidly, influenced by various factors such as economic news, industry trends, and company-specific developments. Staying informed and continuously monitoring the investor profile of Commerce Bancshares, Inc. (CBSH) is essential for making sound investment decisions.